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

By Debolina Dutta, Anasha Kannan Poyil, Chaitali Vedak
Employee Relations: The International Journal | October 2025

DOI

https://doi.org/10.1108/ER-07-2024-0383

Citation

Dutta D, Kannan Poyil A, Vedak C (2025), "Examining HRM practices emerging out of COVID-19 in the MSME sector: impact of employee engagement, perceived organizational support and well-being". Employee Relations: The International Journal, Vol. 47 No. 7 pp. 1088–1105, doi: https://doi.org/10.1108/ER-07-2024-0383

Copyright

Employee Relations: The International Journal, October 2025

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Abstract

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.

Debolina Dutta is a Clinical Professor, senior HR leader, and an ICF‑certified ACC level coach with over 30 years of industry experience and 6 years in academia. She brings deep expertise across Human Resources, Organisation Development, and Leadership Capability Building, having worked across diverse geographies and organisational contexts, including multinational corporations, private enterprises, and start‑ups.

Globally recognized for her contributions to the HR profession, Debolina has been named among the 100 Most Influential Global HR Professionals by the World HRD Congress, a Most Influential HR Leader in India, and nominated as one of the Top 16 Women Leaders. As an executive coach, she works closely with mid‑management and senior leaders on leadership transitions, personal effectiveness, and organisational change. Her work is supported by certifications in behavioral facilitation as well as expertise in psychometric tools.She has served on the Board of IIM Indore and advises organisations on talent strategies and AI-HRM adoption.

Debolina has led large‑scale organisational development and transformation initiatives spanning change management, mergers and acquisitions, HRIS implementations, and the design of structured talent and leadership frameworks, often in complex, multicultural environments. She is an alumna of IIM Indore (FPM‑Industry), IIM Bangalore, and the College of Engineering, Pune, and a published thought leader with case studies in Harvard Business Review and research articles in leading academic journals.  Through her academic, consulting, and coaching roles, she continues to shape future‑ready leaders by integrating research, practice, and coaching‑led development.

Dutta Debolina
Debolina Dutta