DIGITAL HRM PRACTICES AND EMPLOYEE ENGAGEMENT: A CONCEPTUAL SEM MODEL WITH JOB SATISFACTION AS A MEDIATOR

Abstract

This study examines the impact of Digital Human Resource Management (DHRM) practices on Employee Engagement, with Job Satisfaction as a mediating variable, using a Structural Equation Modeling (SEM) approach. Data were collected from 314 employees working in leading software companies in Bangalore. The results indicate that Digital HRM practices significantly influence Job Satisfaction, with Digital Training (β = 0.31, p < 0.001) showing the strongest effect, followed by Digital Performance Systems (β = 0.28), Digital Recruitment (β = 0.24), and Digital Compensation (β = 0.22). Furthermore, Job Satisfaction significantly impacts Employee Engagement (β = 0.63, p < 0.001), explaining 40% of the variance (R² = 0.40). The model demonstrates a good fit (CFI = 0.95, RMSEA = 0.045). The mediation effect was confirmed through SEM indirect path analysis. The findings confirm the mediating role of Job Satisfaction and highlight the importance of digital HR strategies in enhancing employee engagement and organizational outcomes.