Bridging the Gap: Exploring the Impact of Human Capital Management on Employee Performance through Work Engagement

Abstract

The aim of this study was to suggest and test a research model that examines whether work engagement mediates the effect of human capital management practices (HCMPs) on employee performance. These relationships were assessed through the Smart PLS 4 (Partial Least Square) software using Partial Least Square-based Structural Equation Modelling (PLS-SEM). Data were elicited from full-time hotel employees and their managers in South Africa. Based on the PLS-SEM results, work engagement was identified as a mediator of the effects of HCMPs on employee performance. Specifically, HCMPs, manifested by training, career opportunities, and rewards, improve work engagement, triggering employee tasks, and adaptive and creative performance. Additionally, work engagement had a positive influence on task performance, adaptive performance, and contextual performance. This research contributes by empirically testing work engagement as a full mediator in the relationship between HCMPs and employee performance, offering insights into the crucial role of HCMPs in fostering employee engagement and performance within the hospitality industry. Implications of the results are discussed, and directions for future research are presented.