Happy Workers, Healthy Business: The Impact of Sustainable Human Resource Management and Workplace Happiness on Employee Engagement of Women Employees in Tea Plantations

Abstract

As globalization accelerates and environmental awareness expands, it is imperative for organizations to align their business practices with sustainable development goals. This research examines the substantial connection between sustainable human resource management (SHRM) practices and employee happiness, with a focused emphasis on their direct impact on employee engagement. Quantitative research has been used for this particular research, employing both descriptive and causal research methods. It effectively analyzes a sample of 473 women workers from one of India’s largest tea plantations. The results clearly indicate a strong and positive relationship between SHRM practices, employee happiness, and employee engagement. Industries, particularly the tea plantation sector, must prioritize initiatives that foster employee engagement. By deliberately cultivating a work environment that promotes sustained joy and fulfillment, tea plantations can significantly enhance employee commitment and build long-term loyalty. These findings provide critical theoretical insights into the undeniable role of SHRM and employee happiness in driving employee engagement forward.

1. Introduction

The modern workplace has gone through rapid changes in recent years due to increased globalization, technological advancements, outsourcing, and temporary employment [1]. These changes have had a significant impact on organizational practices and employee experiences [2,3]. Although these changes can lead to dissatisfaction and unhappiness among employees, research shows that creating a positive work environment is crucial for improving productivity and organizational performance. Keeping employees happy can directly and positively affect organizational outcomes [4]. Workplace well-being, a crucial part of subjective well-being, is vital for the long-term sustainability of organizations. By prioritizing employee well-being, organizations can enhance employee welfare and create a more positive work environment, ultimately leading to improved performance [5]. Engagement, job satisfaction, and affective organizational commitment have been identified as the key components of happiness at workplace [6]. Workplace happiness has become an increasingly important area of interest, especially within the framework of positive psychology [7]. As organizations acknowledge the significance of human capital in achieving success, happiness has gained prominence as a key factor influencing employee performance and well-being [8,9]. Ref. [10] proposes a state view of workplace happiness, suggesting that it is influenced by factors such as work environment, leadership, career development, job characteristics, and person–environment fit. Ref. [11] emphasizes the need for further research to fully understand the concept of workplace happiness. Happy and healthy employees are more likely to be productive and successful in their work [12]. Fostering employee happiness is essential for achieving full commitment and engagement in today’s organizations [13]. Extensive research has shown that happy employees are more dedicated to achieving organizational goals [14].

The role of human resource management has evolved, with HR professionals increasingly prioritizing employee happiness to build a satisfied and dedicated workforce. Previous research suggests that effective sustainable HRM practices can significantly impact employee happiness [15]. While the relationship between employee happiness and organizational performance has been studied [16,17], there is a lack of empirical research on specific strategies and interventions that can effectively improve employee happiness within the context of sustainable HRM. Furthermore, more research is needed to assess the long-term effects of employee happiness initiatives on organizational success, including factors such as retention, productivity, and innovation [15,18]. There is a growing interest in understanding the influence of sustainable HRM practices on employee happiness and their significance in determining employee well-being. Sustainable human resource management (SHRM) has become a crucial factor affecting organizational performance [19].

The tea plantation sector is the second highest employer after the railway department and a major contributor to India’s economic development. Plantations that produce export-oriented crops have a long history in India. The plantation industry directly employs over 2 million workers, with women making up 50% of the workforce [20]. While plantations are part of the agricultural sector, they share many features with industrial operations. The tea industry, in particular, is one of the oldest organized industries in India, boasting a history of more than 160 years. The plantation sector is the largest organized employer of women, likely contributing to an increase in the national average sex ratio in organized employment [21]. Planters specifically seek women workers for both productive and reproductive roles, particularly due to the skills associated with plucking.

Employee well-being and happiness are essential aspects of sustainable human resource management (SHRM) and have received increased attention in recent years. Research by [22] examined the relationship between employee well-being and organizational performance, emphasizing the importance of understanding their interconnectedness. Ref. [23] highlighted the role of knowledge sharing in enhancing collaborative practices within organizations, while ref. [24] identified organizational concepts and job attitudes related to employee happiness. Ref. [25] investigated that sustainable human resource management mitigates the adverse effects of traditional HRM practices on employees, promoting their well-being by reducing work-related stress, work-family conflict, and burnout. Ref. [26] explored the impact of work and non-work support on employee well-being, emphasizing the importance of family and organizational support. Ref. [27] looked into how green financing can facilitate the development of green HRM resources to achieve carbon neutrality. Ref. [28] Organizations that demonstrate a strong commitment to their employees experience higher levels of work engagement in return. Companies that prioritize human resource management practices focused on employee welfare and health are more likely to retain engaged, satisfied, and productive employees, who also report better overall health and well-being. Overall, the literature emphasizes the importance of sustainable HRM practices in promoting employee well-being and happiness. By incorporating concepts such as knowledge sharing, work flexibility, and green HRM, organizations can enhance employee satisfaction, performance, and overall well-being, contributing to sustainable organizational success. This research aims to identify effective HRM practices that promote employee happiness among the women employees of tea plantations.

2. Literature Review

This research explores various studies related to sustainable human resource management practices, employee happiness, and engagement. A comprehensive review of the existing literature was conducted to gain a deeper understanding of these topics, specifically examining how sustainable HRM practices and employee happiness impact the engagement of women employees working in tea plantations in India.

2.1. Sustainable HRM Practices

Sustainability has become a critical consideration across various fields, including human resource management (HRM), due to its impact on organizational longevity, societal well-being, and environmental preservation [29]. The growing recognition of the interconnectedness between organizational success and responsible management of human capital and resources has led to an increased focus on sustainability in HRM practices [30]. Businesses are increasingly acknowledging the importance of adopting sustainable human resource practices as a strategic approach to enhance organizational performance while addressing environmental and social concerns [31].

Sustainable human resource management (SHRM) has become a prominent approach to HRM policy, emphasizing the integration of sustainability principles into organizational practices [32]. Research has explored various factors influencing the successful implementation of SHRM, including the stakeholders involved and the core functions of SHRM [33]. Studies have highlighted the importance of SHRM in adopting Sustainable Development Goals [34]. Additionally, research has evaluated SHRM practices in specific sectors, such as manufacturing, to understand their impact on organizational performance and well-being. Overall, the literature on SHRM underscores the importance of integrating sustainability principles into HRM practices to ensure the long-term success and well-being of both organizations and employees.

Sustainable HRM involves adapting traditional HRM techniques and practices to achieve long-term monetary, environmental, and organizational goals while minimizing negative consequences [32]. It has identified specific HRM policies associated with high-performance work arrangements and studied their impact on organizational profit and growth. Given the increasing demand for qualified human resources and the resource constraints faced by organizations, sustainable HRM practices are gaining prominence in today’s business environment. Ref. [35] defines sustainable HRM as strategies and practices that contribute to social, financial, and environmental goals, impacting both internal and external factors of an organization in the long term. This research connects sustainable HRM with broader concepts of sustainability and highlights the evolving role of HRM in organizations. The research focuses on internal dimensions of sustainable HRM, with limited research available on external dimensions, indicating a need for further exploration of how sustainable HRM practices can impact external stakeholders and environmental sustainability. They discovered that human factors often do not receive enough attention during this process despite their significant impact on change management. The research identified internal communication, employee engagement, and resistance to change as key human factors influencing successful change management for achieving organizational sustainability. Ref. [36] stressed the importance of the HR function in shaping corporate values and developing sustainability strategies. This underscores the critical role of human resources in driving sustainable initiatives within organizations.

Recent interdisciplinary research has examined the incorporation of sustainability principles into HRM. This research draws from various disciplines and explores areas such as corporate sustainability, corporate social responsibility, and sustainable work systems. These studies offer new perspectives that differ from traditional approaches to strategic HRM in organizational contexts [32]. Sustainable human resource management involves multiple levels of analysis (individual, process management, organization, and society), dimensions (economic, ecological, social, and human) and time perspectives (short and long) that must be considered [33]. Recent literature continues to emphasize the importance of sustainable HRM practices in improving organizational performance and resilience. For example, ref. [37] stresses that sustainable HRM aims to achieve positive economic, social, human, and environmental outcomes in both the short and long term.

The connection between sustainability and HRM practices is an area of growing research, with significant gaps still to be explored. This relationship is based on two key assumptions: the important role of HRM in promoting organizational sustainability [35] and the sustainability of HRM practices themselves [38]. Sustainable HRM practices go beyond traditional HR functions and act as a mechanism to lessen the negative impacts of organizational changes on individuals. For instance, during workforce reductions, sustainable HRM practices can help maintain employee dignity and ensure their continued employability. Sustainable human resource management (SHRM) and employee engagement emphasize the importance of integrating corporate social responsibility (CSR) into HR professionals’ roles. This engagement often focuses on areas such as employee learning, promotion, ownership of development, safety, and respect. A positive psychological climate can lead to higher levels of discretionary effort and employee engagement [39]. New measures, like the ISA Engagement Scale, have been developed to assess employee engagement within organizations [40]. The link between perceived human resource management practices and employee behavior, including engagement, has been explored in the literature [41]. Sustainable HRM practices can impact organizational performance through the mediating effects of knowledge management and work engagement [42]. Studies have investigated the relationship between work engagement, employee satisfaction, and sustainable HRM practices, particularly in the context of Polish employees [43]. HR practices, employee psychological empowerment, and well-being can foster employee work engagement and sustainable employment, especially during crises like the COVID-19 pandemic. Performance appraisal justice has also been identified as a factor influencing employee job performance and engagement, contributing to organizational sustainability [44]. These studies collectively contribute to our understanding of the complex relationship between sustainable HR practices and employee engagement, emphasizing the importance of integrating CSR, positive psychological climates, and effective HRM practices to enhance organizational performance and employee well-being.

2.2. Happiness in the Workplace

Happiness is a fundamental human aspiration, bringing peace and fulfillment. When individuals experience happiness in various aspects of life, they are more likely to approach tasks with enthusiasm and vigor, leading to improved outcomes. For example, happy employees demonstrate enhanced efficiency and effectiveness in their work, meeting organizational expectations with diligence. Flexible working arrangements, as seen in the NHS, can positively influence employee happiness and attitude within a high-performance work system [45]. Research has increasingly focused on multidimensional indicators of employee happiness in the workplace, exploring dimensions of employee flourishing and their antecedents and outcomes in specific contexts like Southern Africa [46].

Research on employee happiness has been limited in the past [47]. Complexity theory has been applied to understand the factors influencing employee happiness and managers’ assessments of employee performance, highlighting the importance of high versus low happiness in employees in performance evaluations. Organizational support and psychological capital influence employee happiness, affecting work engagement, career satisfaction, and overall well-being [48]. Motivating job characteristics at both the individual and job level have been shown to predict employee happiness during daily work activities, expanding on Job Characteristics Theory [49]. Research has also explored the relationship between employee happiness and productivity, with quasi-experimental evidence suggesting a positive impact of employee happiness on productivity in call center sales workers at British Telecom [50]. In the context of Industry 4.0, studies have examined employee happiness in the Spanish industrial sector, highlighting its importance in management science [51]. The COVID-19 pandemic has further emphasized the relationship between work-from-home arrangements, work engagement, and perceived employee happiness as organizations and individuals adapt to new ways of working [52].

The author of ref. [53], a prominent psychologist, made significant contributions to research on well-being and happiness. He defined happiness as a subjective experience encompassing positive emotions like joy and contentment, as well as a sense of fulfillment and purpose. Ref. [53] emphasized that happiness is not merely about momentary feelings but also involves a sense of meaning and life purpose. He recognized happiness as a multifaceted construct comprising both emotional and cognitive components, measurable through various methods, including self-report surveys and physiological measures. Ref. [53]’s research on happiness has influenced the field of positive psychology and led to the development of interventions and therapies aimed at promoting well-being. He advocated for the idea that happiness is a learnable skill that can be cultivated through practices such as gratitude, mindfulness, and positive social relationships.

Workplace happiness is a complex concept that includes engagement, job satisfaction, and affective organizational commitment [13]. It is influenced by personal experiences and managerial factors such as leadership style, workplace justice, communication policies, and organizational culture [10]. Workplace happiness is dynamic and can change in response to work conditions [54]. According to [13], workplace happiness involves positive feelings towards the job, job characteristics, and the organization. Measuring happiness is a challenging task, often described as “taking the temperature of the soul” [55]. Happiness can be measured at three levels: transient (individual variations over time), individual (variations among individuals), and unit (variations among different working units).

2.3. Employee Engagement

Employee engagement is a crucial and positive state of mind that significantly impacts work performance, characterized by vigor, dedication, and absorption. Research by [56] clearly demonstrates that engaged employees work longer hours, achieve superior results, and complete tasks more efficiently than their less engaged counterparts. Ref. [57] identifies three essential components that drive substantial performance improvements related to employee engagement: vigor: employees must consistently put in effort and strive to excel in their work; dedication: employees should feel passionate, motivated, and proud of their contributions; and absorption: employees must be deeply immersed in their tasks, making it difficult to disengage. Furthermore, personal resources such as the need for autonomy, relatedness, and competence are vital motivators for enhancing employee engagement [6].

Employee happiness and engagement play a crucial role in determining employee well-being and performance across various industries. Ref. [57] explored the relationship between work engagement and different dimensions of work-related well-being among Zimbabwean bus drivers. Ref. [58] identified key factors influencing employee engagement in the Indian IT sector, such as supervision, working environment, communication, pay, and organizational commitment. Total rewards components have been found to impact employee happiness in Indian technology-based new ventures [59]. Ref. [60] identified dimensions of employee engagement through focus groups and surveys. Ref. [61] examined the impact of workplace happiness and engagement on employee service innovative behavior, with work engagement mediating the relationship. Ref. [62] investigated the impact of engagement on job burnout and turnover intention among blue-collar workers in India. The findings carried out by researcher ref. [63] indicated a positive correlation between the happiness and enthusiasm of hospital staff and their job enthusiasm. Additionally, job enthusiasm was found to have a significant positive relationship with the hospital staff’s intention to remain in the profession. Ref. [64] explored the relationship between affective organizational commitment, job satisfaction, employee engagement, job happiness, and performance in an Indonesian manufacturing company. Ref. [65] studied the effect of happiness at work on employee engagement and intention to stay among hospital employees. Ref. [65] explored the relationship between affective organizational commitment, job satisfaction, employee engagement, job happiness, and performance in an Indonesian manufacturing company. Ref. [40] examined the mediating role of workplace happiness in enhancing employee engagement among IT sector employees in India. Ref. [66] investigated the impact of employee engagement, job satisfaction, and organizational commitment on happiness at work in a Saudi organization, using Fisher’s framework to understand its meaning, causes, and effects. When employees receive support or actively participate in decision-making processes within their work environment, they are more likely to demonstrate their skills and enthusiasm for their roles. This observation is backed by [67], who found that employees with higher levels of engagement tend to experience greater happiness during their work activities. Over the past decade, studies such as [38] have indicated that high employee engagement not only boosts enthusiasm but also cultivates a relaxed and positive work atmosphere. Happiness at work is both an emotional state and a reflection of the company’s working environment. Ref. [68] investigated the connection between employee engagement and the work environment, revealing a significant correlation. Employee engagement reflects employees’ attitudes toward their work; while their ultimate goal is to achieve performance outcomes, maintaining a positive attitude throughout this process enhances the work environment and contributes to workplace happiness. However, recent research examining the relationship between engagement and workplace happiness often relies on cross-sectional designs, as seen in studies [69,70,71]. Employee engagement is increasingly recognized as a crucial factor in driving organizational success, productivity, and employee well-being. Research, including studies conducted in the Baltic states, highlights the connection between employee participation, organizational culture, and financial involvement in enhancing both performance and job satisfaction. Ref. [72] emphasizes the importance of participatory frameworks, such as financial participation, which promote collaboration and a sense of ownership among employees. These frameworks encompass both direct and indirect participation mechanisms, including employee surveys, team problem-solving, and profit-sharing schemes. Additionally, the socio-economic changes in regions like the Baltic states present both challenges and opportunities for implementing effective employee engagement practices. Ref. [73] noted that historical privatization trends and the absence of a participatory culture have often restricted employee involvement. However, ref. [74] found that organizations that adopt inclusive practices, such as employee stock ownership plans, typically experience higher levels of motivation and performance. These studies collectively underscore the transformative potential of engagement strategies when they are integrated into an organization’s culture and supported by appropriate legal and institutional frameworks. Ongoing research continues to emphasize the importance of aligning engagement initiatives with the evolving dynamics of the workplace, especially as technology and globalization reshape the workforce. Future research may explore innovative participation models and their long-term effects on employee well-being and organizational success.

Employee engagement is crucial for organizational performance, reflecting the emotional and intellectual commitment employees have to their work. It is closely linked to industrial relations, organizational culture, and participation mechanisms. Engagement can be categorized into direct participation, which includes trade union activities and collective bargaining, and indirect participation, such as employee surveys, issue-solving teams, and profit-sharing schemes. These approaches foster harmony and align the goals of employees and management [73,75]. Organizational culture plays a vital role in employee engagement. Participative practices tend to thrive in inclusive environments, while they often encounter resistance in traditional or “post-Soviet” managerial contexts [76]. Despite challenges like management resistance and a limited understanding of engagement mechanisms, these initiatives can lead to significant benefits, including improved performance, higher job satisfaction, and increased trust between employees and management [77]. Future research should focus on the impact of technological advancements, cultural dynamics, and financial participation schemes to further unlock workforce potential and drive innovation [76].

Conceptual Framework of the Research

The conceptual framework for this research is designed to provide a clear understanding of the relationships between sustainable human resource management (SHRM), employee happiness, and employee engagement, specifically within the tea plantation sector. This framework aims to investigate how SHRM practices and happiness in the workplace positively influence employee engagement.

The model presented (Figure 1) is based on a comprehensive review of the literature pertaining to sustainable human resource management (SHRM) practices, workplace happiness (HAW), and employee engagement (EE). SHRM includes key components such as the attraction and retention of professionals, the maintenance of healthy and motivated employees, and the development of professional skills. In parallel, HAW encompasses aspects like positive emotions, job satisfaction, and overall well-being. Meanwhile, EE is characterized by dimensions such as absorption, dedication, and vigor. This model has been developed with support from various literature reviews.

3. Objectives of the Research

• To measure the level of sustainable human resource management practices, employee happiness, and employee engagement.
• To analyze the relationship between sustainable human resource management practices and employee happiness.
• To study the relationship between employee engagement and employee happiness.
• To validate the model linking sustainable human resource management practices, employee happiness, and employee engagement.

4. Hypotheses

Hypothesis 1 (H1). 

Implementation of sustainable human resource management (SHRM) practices will have higher levels of employee happiness.

Ref. [78] identified a significant positive relationship between sustainable HRM practices and employee happiness, highlighting the importance of these practices in creating a supportive work environment. Ref. [79] emphasized that organizations with strong sustainability initiatives often foster positive organizational climates, which directly contribute to increased employee happiness. Additionally, ref. [80] pointed out that sustainable HRM practices promote decent work, economic growth, gender equality, and overall employee well-being, illustrating their multiple contributions to both individual and organizational outcomes. The Social Exchange Theory [81] provides a useful framework for understanding the relationship between sustainable human resource management (HRM) practices and employee happiness. According to this theory, individuals engage in reciprocal exchanges within organizations, offering their time, effort, and expertise with the expectation of receiving rewards and benefits, including emotional and psychological well-being.

Research in [37,82] highlights the positive relationship between sustainable human resource management (SHRM) practices and employee well-being. Specifically, engaging in social responsibility initiatives and involving employees in decision-making processes are strongly correlated with increased job satisfaction and happiness. These findings underscore the crucial role SHRM practices play in creating supportive work environments that enhance employee well-being and overall happiness. By actively involving employees in organizational processes and prioritizing socially responsible initiatives, companies can cultivate a culture that values employee contributions, further improving workplace satisfaction and engagement.

Hypothesis 2 (H2). 

Sustainable human resource management practices are positively associated with employee engagement.

Ref. [83] offer insights into the factors driving employee engagement and job performance, with a focus on public relations and organizational support. Ref. [84] researched the impact of employee satisfaction on engagement and turnover intentions, taking into account the moderating role of position level. Employee satisfaction with human resource practices is connected to employee engagement [85]. Ref. [86] examines the influence of a sustainable work environment on work engagement, job satisfaction, and employee retention. Ref. [87] delves into sustainable HR practices in Indonesian MSMEs, including training, recruitment, employee engagement, and their impact on social entrepreneurship performance and local communities. Sustainable HRM practices involve policies and actions designed to enhance employee engagement, ensure equitable treatment, and provide opportunities for personal growth. Key elements of these practices include flexible work arrangements, fair compensation, professional development opportunities, and initiatives that promote diversity and inclusion [88]. Research has demonstrated that such practices significantly improve workplace happiness, as employees feel valued, respected, and empowered in their roles [89]. When SHRM practices effectively elevate employee engagement, the results are profound: engaged employees showcase enhanced creativity, heightened productivity, and superior overall performance [90]. Creating a supportive and resource-rich environment through SHRM practices can greatly enhance employee engagement, leading to increased performance [91].

Hypothesis 3 (H3). 

There is a positive and significant relationship between employee happiness and employee engagement.

Workplace happiness is essential for employee engagement, yet it has received less attention than individual happiness, as noted by [92]. Ref. [60] examined the relationship between “total rewards perceptions” and work happiness, focusing on how different components of total rewards influence employee satisfaction. Their findings revealed that employees’ perceptions of their overall rewards significantly affect their engagement and happiness at work. Research by [67] shows a strong connection between employee engagement and job satisfaction. When employees feel empowered by participating in decision-making and receive adequate support, they are more likely to demonstrate greater enthusiasm and effectively showcase their skills. This, in turn, leads to increased job satisfaction. Employee engagement and the work environment highlights a significant correlation between these two factors. Employee engagement serves as a crucial indicator of employees’ work attitudes. While achieving optimal work performance remains the primary objective, a positive work attitude fosters a conducive work environment, ultimately contributing to increased employee happiness [68]. In response to the COVID-19 pandemic, ref. [52] investigated the impact of working from home (WFH) on employee happiness and engagement. The research revealed that factors such as WFH autonomy, comfort, and social-psychological safety were stronger predictors of work engagement and employee satisfaction than internal constructs like work engagement itself. These findings align with previous research, emphasizing the significant role autonomy plays in enhancing work engagement. Specifically, employees who worked remotely experienced a greater sense of autonomy, which positively influenced their engagement. Ref. [93] further argues that happy employees are more likely to achieve exceptional results, whereas disengaged or dissatisfied employees can stifle creativity and progress by not fulfilling their responsibilities. In research on the Indian IT sector, ref. [94] examined the key factors influencing employee engagement, fatigue, and happiness among ITES employees. Their research highlights the primary drivers and obstacles to employee well-being within this specific industry.

Relationship Between Sustainable Human Resource Practices and Employee Happiness Influences Employee Engagement Model Assessment Using SEM-PLS

SHRM practices provide employees with supportive frameworks that promote long-term development, fairness, and well-being, critical for fostering employee engagement. Employee happiness, defined by positive emotions, fulfillment, and well-being, directly influences employee engagement by enhancing focus, creativity, and commitment. SHRM practices provide the structural and procedural support for engagement, while employee happiness fosters the psychological and emotional conditions necessary for sustained engagement. Together, these elements create a synergistic effect. According to [95], sustainable human resource management (SHRM) initiatives that prioritize resource allocation and employee-centric approaches have a positive impact on employee attitudes and behaviors, ultimately leading to higher levels of engagement. Sustainable HRM practices promote participative decision-making, which enhances employees’ emotional connections to their roles [96]. Ref. [97] suggests that positive emotions broaden employees’ cognitive resources, thereby fostering resilience and engagement when facing workplace challenges. Ref. [9] found a strong correlation between workplace happiness and active employee participation, an essential component of engagement. It was demonstrated that employees who experience joy and satisfaction at work are less likely to have intentions to leave and are more likely to be engaged [84]. Ref. [97] demonstrated that employees who experience joy and satisfaction at work are less likely to have intentions to leave and are more likely to be engaged.

5. Research Methodology

• Sampling Design

In order to empirically test the research hypotheses, data were collected from tea plantations at one of the largest private limited companies and their respective departments. The primary objective of the research is descriptive and causal research, aiming to discern the relationship between sustainable HRM practices and employee happiness and to explore how employee engagement influences this linkage. A quantitative research methodology was adopted for this research as this is a systematic approach involving the investigation of phenomena by collecting and analyzing numerical data [98]. The stratified random sampling method was used to ensure that all relevant groups of women employees were represented in the sample (given in

Table 1. Description of the sample.

S. No.	Department	Total of Respondents	No. of Responses	Strike Rate
1	Field Department	384	377	98.17
2	Factory	69	51	73.91
3	Medical Department	48	45	93.75
Total		500	473	94.6

). Out of 500 questionnaires distributed, 473 of the respondents returned the questionnaire, which resulted in a 94.6% response rate. Data were collected from the target audience by visiting the tea plantations. The respondents are female employees working in various departments such as the factory and field, and they were visited personally to collect the data from November 2021 to December 2021.

b.

Research Design

In order to preserve consistency in measuring the variables, a five-point Likert scale was employed for the research, spanning from strongly agree (5) to strongly disagree (1).

–

Sustainable human resource management practices: The first section consisted of 22 items related to the SHRM practice scale, based on the work in [99].

SHRM was measured using a scale based on [99]. The questionnaire consists of 22 items and this framework emphasizes the integration of sustainability principles into HR practices, highlighting the importance of attraction and retention of professionals, maintenance of healthy and motivated professionals, and developing the skills of professionals.

–

Employee Happiness: Happiness at Work Scale (16 items) [100].

The Happiness at Work Scale (HAWS), developed by [100], is a 16-item measure designed to assess employee happiness in the workplace. This scale focuses on three key dimensions of happiness at work, job satisfaction, positive affect at work, and workplace well-being, and assesses overall well-being in the workplace, including psychological and social factors.

–

Employee Engagement Scale—The Utrecht Work Engagement Scale (UWES), developed by [56], is a widely used 17-item scale for measuring employee engagement. It consists of three dimensions: vigor, dedication, and absorption.

Employee engagement was assessed using the scale developed by [56]. This scale comprises 17 items, including statements such as, “When I wake up in the morning, I feel excited about going to work”.

To assess the model, reliability tests were conducted. Reliability tests were used to evaluate the consistency of the variables involved in the research, ensuring that they accurately measure the intended constructs. These tests were conducted using IBM SPSS 25, and the reliability statistics are presented in

Table 2. Reliability statistics.

S. No.	Constructs	Cronbach α
1	Sustainable Human Resource Management Practices	0.974
2	Employee Happiness	0.920
3	Employee Engagement	0.990

. The Cronbach alpha values for SHRM, employee happiness, and employee engagement are as follows:

The reliability value for SHRM is 0.935, for employee happiness it is 0.918, and employee engagement ranges to 0.967, which satisfies the reliability criteria for this research. The Cronbach alpha reliability values should range from 0.60 to 0.90, which is said to be sufficient for establishing the reliability of the questionnaire (Table 2).

c.

Tools for data analysis

Data analysis was processed and suitable statistical tools were used for this research paper. The analyses were carried out using IBM SPSS 25 and WarpPLS 8.0.

• Mean analysis: To measure the level of sustainable human resource management practices, happiness in the workplace, and employee engagement, mean analysis was carried out.
• Correlation: To analyze the relationship between sustainable human resource management practices, happiness in the workplace, and employee engagement, correlation was performed.
• Structured Equation Modeling (SEM Technique): WarpPLS 8.0 is being used to develop and validate the model linking sustainable human resource management (SHRM) practices, workplace happiness (HAW), and employee engagement (EE). It helps to assess the measurement and the model framed for the research. PLS-SEM was selected due to its strength as a causal modeling technique, especially for complex models and predictive research. This method was utilized to evaluate the measurement model and examine the relationships among variables. To assess the model’s fit, calculations that explained variance (R²) were carried out. According to established guidelines, R² values should exceed 0.10 to indicate a meaningful relationship, and the guidelines further classify R² values as weak (0.02), moderate (0.13), and substantial (0.26).

6. Analysis

Tests of Hypotheses

Hypothesis 1 predicted the levels of SHRM, employee engagement, and employee happiness. The result (

Table 3. Level of SHRM, employee happiness, and employee engagement.

ITEMS	MEAN
SUSTAINABLE HUMAN RESOURCE MANAGEMENT
The company offers an attractive and challenging work environment.	4.31
The company offers career opportunities.	4.17
The company promotes cultural and gender diversity in relation to its employees.	4.45
The company has compensation and benefits practices that favor the attraction and retention of professionals.	4.10
The company develops actions that favor the reduction and prevention of stress	4.10
The company favors the adoption of a healthy lifestyle by its employees.	4.03
The company is concerned about the well-being of its employees.	4.03
The company favors the balance between the personal and professional life of its employees	4.23
The company provides ergonomic conditions in the workplace.	3.92
The company is concerned about its employees’ satisfaction and motivation.	4.10
The company offers professional training to employees, with a long-term vision.	4.02
The company invests in the training and development of different groups of employees.	4.03
The company invests in the employees’ education	4.23
The company invests in the training of employees and in the development of their knowledge.	4.02
HAPPINESS AT WORK
I enjoy what I am doing at work.	4.03
My organization does not have proper guidelines to regulate term behavior and work that requires collective effort	4.23
I feel internally driven to do great things at my work	4.03
At my work, I remain inspired and try to inspire others as well.	4.23
The decision-making process in my company is fair and just.	4.03
I hate lot of people here for always being around the boss for personal gains	1.89
My organization provides all necessary training and information to complete work on time	4.03
We celebrate and cheer each other at the accomplishment of targets.	4.23
When I start doing my work, I forget everything else	4.02
I don’t get sufficient credit for my contributions.	1.89
I am not very comfortable in approaching my boss.	1.89
I feel stressed at work.	1.89
I continue to do a task till it is perfectly done.	4.03
Top leaders of my organization have a clear vision and focus.	4.23
My company does not have a proper interface that can allow us to work for social cause.	4.02
Often, I feel like quitting my job.	1.47
EMPLOYEE ENGAGEMENT
At work I feel like bursting with energy. (VI01)	4.02
I find the work that I do meaningful and purposeful. (DE01)	4.03
Time flies when I am at work. (AB01)	4.23
At my job I feel strong and vigorous. (VI02)	4.02
I am enthusiastic about my job. (DE02)	4.03
When I work, I forget everything else around me. (AB02)	4.23
My job inspires me. (DE03)	4.03
When I get up in the morning, I feel like going to work (VI03)	4.23
I feel happy when I work intensively. (AB03)	4.02
I am proud of the work that I do. (DE04)	4.02
I am immersed in my work. (AB04)	4.03
I can continue to work for long periods of time. (VI04)	4.23
My job is challenging enough. (DE05)	4.02
I get carried away when I work. (AB05)	4.03
At my job, I am mentally resilient. (VI05)	4.23
It is difficult to detach myself from my job. (AB06)	4.03
At my job, I always persevere, even when things do not go well. (VI06)	4.23

) indicates the mean values supporting Hypothesis 1.

The mean values for sustainable human resource management (SHRM) practices range from 3.9260 to 4.4503, indicating significant implementation. While employee happiness has mixed results, with both positive and negative factors influencing it, employee engagement remains high (4.0296 to 4.2368). This suggests that the organization effectively implements SHRM practices, leading to positive engagement. To further enhance employee happiness, addressing negative interpersonal relationships and workplace dynamics is crucial. Future research can explore specific factors influencing employee happiness within this organization. Sustainable human resource management practices are positively associated with employee engagement.

Hypothesis 2 predicts that sustainable human resource management practices are positively associated with employee engagement. The result (

Table 4. Relationship between employee happiness and sustainable human resource management practices.

		HAW	SHRM
HAW	Pearson Correlation	1	0.943 **
	Sig. (2-tailed)		0.000
	N	473	473

** Correlation is significant at the 0.01 level (2-tailed).

) indicates a correlation value that indicates the relationship between employee happiness and sustainable human resource management, supporting Hypothesis 2.

According to Table 4, there is a Pearson correlation between employee happiness, measured using the workplace happiness (HAW) scale and sustainable human resource management (SHRM). The third hypothesis suggests that there is a significant relationship between sustainable human resource management (SHRM) and employee happiness. The correlation coefficient between HAW and SHRM is 0.943, indicating a very strong positive relationship. This suggests that as sustainable HRM practices improve, the human-oriented work atmosphere also tends to be enhanced. The p-value (Sig.) is 0.000, meaning the correlation is statistically significant at the 0.01 level (99% confidence level). This indicates there is only a 0.01% chance that this result is due to random variation, thereby supporting a strong relationship between these two variables. Overall, the strong positive correlation between SHRM and HAW suggests a strong relationship between these two variables. This finding supports the hypothesis that sustainable HRM practices contribute significantly to creating a positive work atmosphere.

Hypothesis 3 predicts the relationship between employee happiness and employee engagement. The result (

Table 5. Relationship between employee engagement and happiness in the workplace.

		HAW	EE
HAW	Pearson Correlation	1	0.947 **
	Sig. (2-tailed)		0.000
	N	473	473

** Correlation is significant at the 0.01 level (2-tailed).

) indicates a correlation value that indicates the relationship between employee happiness and employee engagement, supporting Hypothesis 3.

The correlation between workplace happiness (HAW) and employee engagement (EE) is strong and positive (r = 0.947, p < 0.01) (Table 5). This indicates a significant direct relationship between a positive work environment and employee engagement. Organizations can enhance employee engagement by creating and maintaining a positive work atmosphere, which can contribute to employee satisfaction, motivation, and overall well-being. Further research could explore specific factors influencing a positive work atmosphere and how organizations can effectively cultivate such an environment. The strong positive correlation between HAW and EE supports the hypothesis that a positive work atmosphere is a key driver of employee engagement. Finally, the relationship between sustainable human resource practices and employee happiness influences the employee engagement model assessment and is validated using SEM-PLS. The result (Figure 2) indicates the relationship between SHRM, employee happiness, and employee engagement.

Relationship between SHRM, employee happiness, and employee engagement model assessment using SEM-PLS.

The strong and statistically significant path coefficient (β = “0.97”, p < “0.01”) indicates that sustainable human resource management (SHRM) practices significantly enhance workplace happiness (HAW). This finding supports the perspective in [101], which emphasizes that SHRM is a crucial driver for promoting both employee welfare and organizational sustainability. The β values (β = “0.36”, p < “0.01”) indicate moderate to strong relationships between sustainable human resource management (SHRM) practices and employee engagement (EE), with these relationships being statistically significant. Additionally, the pathway (β = “0.65”, p < “0.01”) emphasizes the important role a positive atmosphere plays in enhancing the effects of SHRM practices. The R² = “0.93” for HAW indicates that 93% of the variance in HAW is explained by SHRM. Similarly, R² = “0.99” for EE shows that 99% of the variance in EE is jointly explained by SHRM and HAW in this model, demonstrating an almost complete fit. This suggests that SHRM practices, when combined with a positive work atmosphere, serve as comprehensive predictors of engagement. These findings support the Job Demands–Resources (JD-R) model [102], which asserts that job resources, such as SHRM practices, boost employee engagement by fulfilling psychological needs like autonomy, competence, and relatedness. Research by [84,103] has shown that organizations prioritizing employee-centered sustainability policies and supportive leadership consistently report higher levels of engagement and reduced turnover intentions.

7. Key Findings

This research, based on a survey of 500 distributed questionnaires, achieved a strong response rate of 94.6%, with 473 responses returned. The mean values for sustainable human resource management (SHRM) practices ranged from 3.92 to 4.45, indicating generally positive perceptions of SHRM implementation across the sample. Employee happiness (HAW) exhibited high mean values, such as 4.2368 for celebrating accomplishments, while also reflecting challenges, such as a low mean value of 1.89 for negative interpersonal dynamics. These findings highlight the dual nature of employee experiences, which are shaped both by positive recognition and negative workplace stressors, aligning with previous research on the complex relationship between HR practices and employee well-being [32,91]. Employee engagement scores ranged from 4.02 to 4.23, which underscores a moderate to high level of engagement among the respondents. Notably, the study identified a direct, positive relationship between SHRM practices, workplace happiness (HAW), and employee engagement (EE). Specifically, SHRM was found to significantly influence both HAW (β = “0.36”, p < “0.01”) and EE (β = “0.36”, p < “0.01”), demonstrating that well-implemented HRM practices can directly enhance both happiness and engagement levels, as supported by prior research [104].

Furthermore, HAW was found to significantly mediate the relationship between SHRM and EE (β = “0.65”, p < “0.01”), suggesting that employee happiness plays a pivotal role in translating sustainable HR practices into tangible engagement outcomes [59,105]. This research confirms the importance of fostering a positive work environment in improving employee engagement, a factor crucial for organizational success. The creation of a supportive, fair, and empowering atmosphere is vital for mediating the link between SHRM and engagement, corroborating findings in the HRM literature that emphasize the value of employee well-being in enhancing organizational performance [106,107]. The results suggest that organizations that integrate sustainable HRM practices—such as promoting work–life balance, employee development, and recognition—can cultivate an environment that fosters greater employee engagement and well-being [32,105].

8. Discussion

The modern workplace is undergoing rapid transformation due to globalization, technological advancements, and the rise of new employment models, such as outsourcing and temporary work. These changes necessitate that organizations place greater emphasis on employee happiness, as it is intricately linked to productivity, organizational commitment, and overall success. This research aimed to explore the impact of sustainable human resource management (SHRM) practices and employee happiness on employee engagement. The findings confirm that SHRM practices have a positive influence on employee engagement, aligning with previous literature that demonstrates the significant role of HRM practices in fostering a productive and motivated workforce [32,108]. The core objective of SHRM is to create a stable and supportive work environment that not only prioritizes employee welfare but also aligns with the strategic objectives of the organization. Research has consistently shown that satisfied employees are more likely to demonstrate higher levels of organizational commitment and contribute to achieving these strategic goals [109]. This study highlighted that employee happiness is shaped by various workplace factors, including leadership, career development, job fit, and overall work environment. Female employees, in particular, tend to perform better when they feel valued, supported, and provided with opportunities for professional growth. This aligns with existing research, which suggests that work–life balance initiatives, flexible working arrangements, and career development programs significantly enhance employee happiness [102,109].

Research shows that satisfied employees are more committed to achieving these goals. Employee happiness is influenced by several workplace factors, including leadership, career development, job fit, and the overall work environment. When female employees feel valued, supported, and given opportunities for growth, they are more likely to perform at their best. For example, flexible working arrangements and initiatives promoting work–life balance can significantly boost happiness, as numerous studies have demonstrated. Additionally, employee engagement is essential for enhancing organizational performance. Engaged employees demonstrate higher levels of dedication, energy, and focus in their work, leading to improved job performance. Research indicates that personal resources, such as autonomy and competence, along with supportive work environments, are crucial motivators for engagement. The Utrecht Work Engagement Scale (UWES) used in this research validates the strong correlation between engagement and high performance, highlighting key factors such as vigor, dedication, and absorption. Sustainable human resource management (SHRM) practices extend beyond traditional HR functions, focusing on long-term strategies that enhance employee well-being. Evidence shows that SHRM positively affects employee happiness, with a significant correlation between SHRM practices and employee engagement. Organizations that embrace strategic HR initiatives—like career development opportunities, work–life balance programs, and diversity promotion—typically experience increased employee happiness and engagement. This research outlines a conceptual framework linking SHRM practices to employee engagement and happiness, suggesting that organizations can create a positive and engaging work environment through effective SHRM applications.

However, the existing literature on sustainable human resource management notably lacks empirical research. This gap is evident in the absence of a consensus regarding the definition of SHRM, as illustrated by varying components currently discussed, such as green HRM, socially responsible HRM, triple-bottom-line HRM, and common-good HRM. The purpose of this research was to examine the impact of SHRM and employee happiness on employee engagement. Based on relevant theories and empirical evidence, a conceptual model was developed and tested using Structural Equation Modeling with Partial Least Squares (SEM-PLS). The relationship between sustainable HRM and employee happiness requires further exploration due to the comprehensive perspective it provides on the policies and practices aimed at attracting, developing, and retaining employees to meet an organization’s economic, social, and environmental goals—particularly in sectors like tea plantations [110]. This study specifically focused on women employees working in the tea plantation sector in India and formulated four hypotheses. The findings offer valuable insights to guide future research and inform practical applications in sustainable HRM. The limited studies available support a positive association between SHRM, employee happiness, and work engagement [111,112,113].

The results confirmed that SHRM and employee happiness positively influence employee engagement. Notably, this research is among the first to concentrate on the effects of the SHRM–engagement relationship in industries such as the tea plantation sector. It builds on previous research [114,115,116] by emphasizing employee engagement and exploring the mechanisms linking SHRM to employee happiness in corporate contexts while recognizing the limited past research in sectors like tea plantations. This study introduced a multilevel framework and drew on the Job Demands–Resources (JD-R) theory [117]. The multilevel analysis enabled the testing of an integrative model that includes direct relationships between SHRM practices, employee happiness, and employee engagement. Regarding the levels of SHRM, employee happiness, and employee engagement (Hypothesis 1), the results support previous studies suggesting higher mean levels. Hypotheses 2 and 3 further explain how SHRM is positively associated with both employee happiness and engagement. This approach captures the dynamic interactions between individual workers, specific situations, and the broader environment. Future research on sustainable HRM and the work engagement of women employees should consider the unique characteristics of their roles to develop practical and implementable tools. Additionally, investigating female employees in various sectors would be valuable for uncovering both commonalities and distinctions, facilitating the identification of specific and universally applicable solutions. Furthermore, the research emphasizes that employee engagement mediates the relationship between SHRM and employee happiness, highlighting the importance of fostering a positive psychological climate to maximize the benefits of these practices.

9. Managerial Implications

Organizations similar to the tea plantation industry that adopt sustainable human resource management (SHRM) practices can expect significant improvements in employee morale, satisfaction, and productivity. This is particularly important for women workers, who often encounter unique challenges in this sector [100,118]. Previous studies have shown the vital role of SHRM in creating an inclusive and supportive work environment, which can greatly enhance employee engagement and, consequently, improve organizational performance [32,107]. For HR professionals in the tea plantation industry, these insights highlight the importance of incorporating sustainable HRM practices into strategic planning. By prioritizing employee well-being, fostering a work–life balance, and providing skill development opportunities, companies can create an environment that not only retains top talent but also maximizes productivity, especially in sectors with high employee turnover and low engagement levels [117]. In the context of tea plantations, where labor conditions can be demanding and socio-economic factors significantly influence employee experiences, SHRM can be particularly effective in addressing gender disparities and improving the overall quality of life for female workers [107]. For instance, by implementing policies that support women’s career development and offering flexible work arrangements, tea plantation companies can help reduce gender-based inequality and cultivate a more equitable work environment. This, in turn, fosters long-term employee engagement and retention [106,119]. Furthermore, emphasizing work–life balance and well-being can directly enhance employee job satisfaction and motivation, leading to higher levels of productivity and innovation. In the tea plantation industry, where seasonal work and challenging conditions are common, creating a positive work environment is crucial. SHRM practices that address these factors can help organizations build a resilient, engaged, and loyal workforce [117,120]. In conclusion, adopting SHRM practices tailored to the specific needs of the tea plantation sector—especially focusing on improving women’s work conditions—can yield significant benefits for both employees and organizations. Future research could further examine the role of SHRM in enhancing labor conditions within this industry, particularly its impact on gender equity, employee happiness, and overall organizational performance [118,121].

10. Conclusions

Sustainable human resource management (SHRM) plays a crucial role in enhancing employee engagement, well-being, and overall organizational success, emphasizing that individuals who thrive within an organization are its key to effectiveness [116,121]. As organizations increasingly recognize the value of fostering a sustainable work environment, SHRM practices have been shown to contribute to improved employee morale, job satisfaction, and productivity [35,121]. By implementing SHRM initiatives, organizations not only benefit from higher levels of employee engagement but also enhance long-term sustainability through a motivated and satisfied workforce [115,117].

Research demonstrates that a positive work environment, one that prioritizes well-being and work-life balance, significantly boosts employee engagement, leading to improved organizational performance [105]. This is particularly important in sectors where employee satisfaction has historically been underemphasized, such as in tea plantations. Here, SHRM practices that focus on employee happiness, career development, and social inclusion can result in not only talent retention but also greater innovation and higher productivity, particularly among underrepresented groups such as women employees [106,119]. The findings underscore the importance for HR professionals to integrate sustainable HRM practices into their strategic frameworks, aligning employee well-being with organizational objectives. By adopting a holistic approach to HRM, organizations can create an environment that supports both individual growth and collective success [118,121]. Specifically, for the tea plantation sector, this approach could be pivotal in addressing industry-specific challenges and improving labor outcomes, particularly by promoting gender equity and empowering female workers [121].

Overall, SHRM can be a powerful tool for enhancing employee happiness, engagement, and organizational performance. Future research should consider expanding this model to other sectors and examine additional mediating factors that influence employee engagement, well-being, and organizational outcomes, thereby contributing to a more comprehensive understanding of the impact of sustainable HRM on long-term success [121].