Abstract:
The present study endeavours to empirically investigate the relationship between Sustainable Human
Resource Management Practices (HRM Practices) and Employee happiness, while delving into the mediating role
of Employee engagement. This study conducted within the dynamic landscape of the Sri Lankan banking industry,
engaged 185 participants through a meticulously designed structured questionnaire, employing convenience
sampling techniques. The study has used Statistical Package for Social Sciences (SPSS) for the empirical analysis
and drawing conclusions. The empirical findings underscore the pivotal role of sustainable HRM Practices as a
cornerstone in fostering enduring employee happiness within organizations. Crucially, our study unveils the
significant mediating effect of Employee engagement in amplifying the impact of sustainable HRM Practices on
Employee happiness. Consequently, organizations are urged to prioritize Employee engagement initiatives,
thereby fostering a culture where employees find sustained joy and fulfilment, nurturing long-term organizational
loyalty. Furthermore, our findings furnish invaluable contributions to the banking industry’s research landscape,
while also furnishing actionable recommendations geared towards enhancing employee happiness, thus fortifying
organizational prosperity.
