This study examines the impact of employee work engagement, satisfaction with telecommuting and perceived organizational support on employee well-being within Indian MSMEs, particularly in light of the ad hoc HRM measures adopted during the COVID-19 pandemic.
The research utilizes PLS-SEM for data analysis of 8,193 employees from Indian MSMEs, exploring the moderating effect of perceived organizational support on the relationship between engagement, telecommuting and well-being.
Results indicate that labor-intensive MSME employees compare their well-being support with that of other industries, potentially affecting employee retention. The study underscores the importance of organizational and managerial support in enhancing employee engagement and well-being, even in smaller enterprises.
The findings support social comparison theory and social exchange theory, demonstrating their relevance in MSMEs. The study highlights the importance of mature HRM practices in enhancing employee well-being and engagement, providing a competitive advantage in talent-scarce environments.
MSME managers should adopt flexible working hours, family leave programs and strong communication practices to enhance employee engagement and well-being, even with limited resources and informal HRM structures.
This research contributes to HRM literature by focusing on the under-researched MSME sector, providing insights into the diffusion of mature HRM practices like telecommuting and their impact on employee well-being and engagement.
