Drivers of employee engagement and their impact on organizational efficiency: evaluating the mediating role of human resource development initiative

This study aims to explore how human resource management programs mediate the association between employee engagement (EE) and organizational efficiency (OE). The questionnaire of the study is framed with 20 questions, and data are collected from 358 managerial staff of the Indian IT industry. Structural equation modelling was applied to analyse the relationships between the constructs. The investigation shows that the engagement of employees is significantly influenced by both effective communication and talent development, while co-employee support does not directly affect EE; however, it positively impacts OE, with human resource development (HRD) serving as a mediator between OE and EE. This study’s original contribution is empirically examining the mediating effect of HRD initiatives on the relationship between EE and OE using social exchange theory and organizational support theory. While research exists on EE and its impact, this study focuses on the underexplored mediating link of HRD and its specific application within the Indian IT context. The findings also suggested that companies that fund HD initiatives have higher EE, resulting in improved organizational efficacy.