ENHANCING EMPLOYEE ENGAGEMENT IN SMALL AND MEDIUM ENTERPRISES (SMES) THROUGH LEADERSHIP, COMPENSATION AND APPRAISALS

Small and Medium Enterprises (SMEs) are pivotal to the financial growth of any country, functioning as labour-intensive units whose success relies heavily on employee productivity. Consequently, employee engagement is a critical determinant of success for SMEs, where each employee's contributi...

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Main Authors: Arti Awasthi, Farhina Sardar Khan, Syed Shahid Mazhar, Tariq Fayez M Aldhamadi, Ehsanul Haque, Ritesh Kumar Chaudhary
Format: Article
Language:English
Published: FINTECH Alliance LLC 2025-02-01
Series:Фінансово-кредитна діяльність: проблеми теорії та практики
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Online Access:https://fkd.net.ua/index.php/fkd/article/view/4568
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author Arti Awasthi
Farhina Sardar Khan
Syed Shahid Mazhar
Tariq Fayez M Aldhamadi
Ehsanul Haque
Ritesh Kumar Chaudhary
author_facet Arti Awasthi
Farhina Sardar Khan
Syed Shahid Mazhar
Tariq Fayez M Aldhamadi
Ehsanul Haque
Ritesh Kumar Chaudhary
author_sort Arti Awasthi
collection DOAJ
description Small and Medium Enterprises (SMEs) are pivotal to the financial growth of any country, functioning as labour-intensive units whose success relies heavily on employee productivity. Consequently, employee engagement is a critical determinant of success for SMEs, where each employee's contribution is important. This empirical study aims to enhance employee engagement by examining HRM Practices such as leadership, pay practices, performance appraisal, and training and development in Indian SMEs. It investigates the relationships and impacts of these HRM Practices on employee engagement within SMEs. By analysing these practices, the study seeks to uncover the essential elements that influence strategic decisions related to employee engagement. The research employs statistical analyses, including factor analysis, correlation, and regression and adopts an exploratory survey method. It included 300 participants from SMEs, with 230 successfully submitting fully completed surveys both offline and online. Notably, the study investigation produced encouraging results by fulfilling the KMO and Barlett's Test criteria, correlation coefficients, and standardised coefficients (Beta), among other indicators. The findings show that leadership, performance appraisal, and training and development all have a beneficial impact on employee engagement in SMEs. However, pay policies have no meaningful impact. The findings offer valuable insights into effective strategies for SMEs to cultivate a motivated, committed, and high-performing workforce, providing actionable recommendations to enhance organisational performance and competitiveness.
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series Фінансово-кредитна діяльність: проблеми теорії та практики
spelling doaj-art-e0bf839724df40eebc15b6276f523b252025-08-20T02:57:53ZengFINTECH Alliance LLCФінансово-кредитна діяльність: проблеми теорії та практики2306-49942310-87702025-02-0116010.55643/fcaptp.1.60.2025.4568ENHANCING EMPLOYEE ENGAGEMENT IN SMALL AND MEDIUM ENTERPRISES (SMES) THROUGH LEADERSHIP, COMPENSATION AND APPRAISALSArti Awasthi0Farhina Sardar Khan1Syed Shahid Mazhar2Tariq Fayez M Aldhamadi3Ehsanul Haque4Ritesh Kumar Chaudhary5Candidate of Economy Sciences, Doctoral Student, Integral University, Lucknow, IndiaPhD in Economics, Associate Professor of the Department of Commerce, Integral University, Lucknow, IndiaPhD in Economics, Professor of the Department of Business Management, Integral University, Lucknow, IndiaCandidate of Economy Sciences, Department of Management and Information Systems, College of Business Administration, University of Hail, Hail, Saudi ArabiaPhD in Economics, Department of Business Management, Integral University, Lucknow, IndiaCandidate of Economy Sciences, Doctoral Student, Shyama Prasad Mukherjee Government Degree, University of Allahabad, Prayag Raj, Allahabad, India Small and Medium Enterprises (SMEs) are pivotal to the financial growth of any country, functioning as labour-intensive units whose success relies heavily on employee productivity. Consequently, employee engagement is a critical determinant of success for SMEs, where each employee's contribution is important. This empirical study aims to enhance employee engagement by examining HRM Practices such as leadership, pay practices, performance appraisal, and training and development in Indian SMEs. It investigates the relationships and impacts of these HRM Practices on employee engagement within SMEs. By analysing these practices, the study seeks to uncover the essential elements that influence strategic decisions related to employee engagement. The research employs statistical analyses, including factor analysis, correlation, and regression and adopts an exploratory survey method. It included 300 participants from SMEs, with 230 successfully submitting fully completed surveys both offline and online. Notably, the study investigation produced encouraging results by fulfilling the KMO and Barlett's Test criteria, correlation coefficients, and standardised coefficients (Beta), among other indicators. The findings show that leadership, performance appraisal, and training and development all have a beneficial impact on employee engagement in SMEs. However, pay policies have no meaningful impact. The findings offer valuable insights into effective strategies for SMEs to cultivate a motivated, committed, and high-performing workforce, providing actionable recommendations to enhance organisational performance and competitiveness. https://fkd.net.ua/index.php/fkd/article/view/4568employee engagementleadershippay practicesperformance appraisal and training and developmentSmall and Medium Enterprises (SMEs)workforce sustainability
spellingShingle Arti Awasthi
Farhina Sardar Khan
Syed Shahid Mazhar
Tariq Fayez M Aldhamadi
Ehsanul Haque
Ritesh Kumar Chaudhary
ENHANCING EMPLOYEE ENGAGEMENT IN SMALL AND MEDIUM ENTERPRISES (SMES) THROUGH LEADERSHIP, COMPENSATION AND APPRAISALS
Фінансово-кредитна діяльність: проблеми теорії та практики
employee engagement
leadership
pay practices
performance appraisal and training and development
Small and Medium Enterprises (SMEs)
workforce sustainability
title ENHANCING EMPLOYEE ENGAGEMENT IN SMALL AND MEDIUM ENTERPRISES (SMES) THROUGH LEADERSHIP, COMPENSATION AND APPRAISALS
title_full ENHANCING EMPLOYEE ENGAGEMENT IN SMALL AND MEDIUM ENTERPRISES (SMES) THROUGH LEADERSHIP, COMPENSATION AND APPRAISALS
title_fullStr ENHANCING EMPLOYEE ENGAGEMENT IN SMALL AND MEDIUM ENTERPRISES (SMES) THROUGH LEADERSHIP, COMPENSATION AND APPRAISALS
title_full_unstemmed ENHANCING EMPLOYEE ENGAGEMENT IN SMALL AND MEDIUM ENTERPRISES (SMES) THROUGH LEADERSHIP, COMPENSATION AND APPRAISALS
title_short ENHANCING EMPLOYEE ENGAGEMENT IN SMALL AND MEDIUM ENTERPRISES (SMES) THROUGH LEADERSHIP, COMPENSATION AND APPRAISALS
title_sort enhancing employee engagement in small and medium enterprises smes through leadership compensation and appraisals
topic employee engagement
leadership
pay practices
performance appraisal and training and development
Small and Medium Enterprises (SMEs)
workforce sustainability
url https://fkd.net.ua/index.php/fkd/article/view/4568
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