High-performance work practices and Generation Y employee engagement: a pathway to innovation and retention

Purpose Drawing on the social exchange theory (SET), this paper aims to theorize and empirically examine a model that investigates the underlying mechanism through which high-performance work practices (HPWPs) influence Generation Y employee engagement (EE) and how this engagement subsequently affects two critical organizational outcomes: turnover intention (TI) and innovative behavior (IB). Design/methodology/approach The data for the study are from 404 Gen Y frontline service employees from 3- to 5-star Indian hotels and examined using structural equation modeling. Findings The findings indicate that HPWPs are the key drivers of Gen Y EE at work. EE, in turn, has a negative impact on employee TI. Also, EE results in IB of FLSEs in the Indian hospitality industry. Originality/value The present research is one of the few attempts to study how HPWPs can engage the Gen Y cohort in the workplace, especially in a developing country (i.e. India). It also bridges key theoretical frameworks (SET, job demands-resources and self-determination theory) to explain the psychological mechanisms linking HPWPs with EE and downstream outcomes.