Examining HRM practices emerging out of COVID-19 in the MSME sector: impact of employee engagement, perceived organizational support and well-being

Purpose 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. Design/methodology/approach 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. Findings 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. Research limitations/implications 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. Practical implications 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. Originality/value 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.