Purpose – The paper aims to investigate the relationship between human resource practices (HRPs), employee
engagement and firm performance, with a focus on the mediating role of employee engagement in its
association.
Design/methodology/approach – Data for the present study were collected from 281 middle- and senior-level
executives representing various Indian industries of different sizes via convenient sampling. The SPSS
PROCESS macro (model 4) was employed to analyze the collected data.
Findings – The results revealed that human resource (HR) practices have a direct and positive impact on firm
performance. Moreover, employee engagement represented a partially mediated effect. The analysis showed
that the influence is significantly augmented when employee engagement is factored into this relationship.
Practical implications – This investigation highlights the importance of organizations adopting a holistic HR
approach that fosters employee engagement at every stage of the HR lifecycle. Training and development
initiatives not only equip employees with essential skills but also play a critical role in boosting engagement.
Elevated employee engagement leads to increased commitment, job satisfaction and organizational citizenship
behaviors, ultimately driving improved firm performance.
Originality/value – This study’s findings offer valuable insights for organizations aiming to enhance their HR
practices to improve firm performance. Firms that invest in robust HR practices, including recruitment, training
and talent management, stand to gain significantly by fostering higher levels of employee engagement.