Examining the Impact of High-Performance Work Practices on Employee Engagement Through Ethical Decision-Making

This study examines the influence of high-performance work practices on employee engagement and investigates the mediating role of ethical decision-making. The practices assessed include recruitment and selection, training and development, performance appraisal, employee participation, compensation and rewards, and job security. The proposed relationships were evaluated using partial least squares structural equation modelling. The measurement model demonstrated satisfactory indicator reliability, internal consistency, convergent validity, and discriminant validity. The structural model results revealed that training and development had the strongest positive effect on employee engagement, followed by employee participation and recruitment and selection. Performance appraisal and compensation and rewards showed positive but statistically insignificant direct effects. Job security had a significant negative effect on employee engagement, contrary to the proposed relationship. Ethical decision-making significantly mediated the relationships between employee engagement and five practices: recruitment and selection, training and development, performance appraisal, employee participation, and compensation and rewards. Its mediating effect was not significant for job security. These findings demonstrate that the existence of formal human resource practices alone may not be sufficient to improve employee engagement. Their effectiveness largely depends on whether they are implemented fairly, transparently, consistently, and responsibly. The study contributes to strategic human resource management by identifying ethical decision-making as an important mechanism connecting high-performance work practices with employee engagement. Organisations should prioritise continuous employee development, meaningful participation, transparent recruitment, objective performance appraisal, and equitable reward allocation while embedding ethical principles throughout human resource decision-making. Further research should investigate the unexpected negative relationship between job security and employee engagement across different organisational and employment contexts.