Ramification of Sustainable HRM Practices on Employee Well-Being and Organizational Sustainability: The Mediating Role of Leadership

This study investigates the influence of sustainable Human Resource Management (HRM) practices on employee well-being and organizational sustainability, highlighting leadership’s mediating role. The study is designed to investigate the ways in which sustainable HRM improves employee well-being and the organization’s outcomes, as well as how leaders’ actions moderate these effects. Data were collected from 489 workers employed in chemical processing, manufacturing, pharmaceuticals, and healthcare using a formal questionnaire. Partial Least Squares Structural Equation Modeling (PLS-SEM) was chosen as the study’s statistical method to test five hypotheses about the relationships between sustainable HRM, leadership, employee well-being, and the sustainability of the organization. Key findings indicate significant direct effects of sustainable HRM on employee well-being ([Formula: see text], [Formula: see text]), leadership ([Formula: see text], [Formula: see text]), and organizational sustainability ([Formula: see text], [Formula: see text]). Leadership was found to significantly mediate the relationship between sustainable HRM and employee well-being (indirect effect [Formula: see text], [Formula: see text]) and organizational sustainability (indirect effect [Formula: see text], [Formula: see text]). The model demonstrated strong explanatory power with [Formula: see text] values of 0.53, 0.60, and 0.48 for employee well-being, leadership, and organizational sustainability, respectively, along with a good model fit ([Formula: see text]).Challenges faced include ensuring broad industry representation and controlling for confounding demographic variables. The study contributes to HRM literature by empirically validating leadership’s crucial role in translating sustainable HRM into positive employee and organizational outcomes. Future research should explore longitudinal designs and qualitative insights to deepen understanding of these relationships over time and in varying cultural contexts.