Strenghthening Employee Happiness through Sustainable Human Resource Management Practices: Mediating Effect of Employee Engagement

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.