Do Islamic HRM Practices Influence Employee Outcomes: Mediating Role of Employee Engagement

Abstract

Islam is a complete code of life and it motivates all Muslims to perform their duties effectively. It guides atevery step of life. Similarly, it also explains teachings about managing people in an organization. The aim of this study is to explore the effects of Islamic human resource management (HRM) on employees’ outcomes under mediation by employee engagement in Islamic banks in Pakistan. This is quantitative study and data collected by using personal administered questionnaires. The 170 questionnaires were floated among employees of Islamic banks in Pakistan. The questionnaire included validated scales of Islamic HRM, employee engagement, job satisfaction, turnover intentions and organizational commitment. The results revealed that selected banks consider Islamic approach during HRM functions. The results of regression and correlation analyses indicate that Islamic HRM is significantly and highly correlated to employee outcomes. The multiple regression analysis revealed that employee engagement mediated the relationship between Islamic HRM and employee outcomes.