Reimagining the Workplace After the Pandemic: The Influence of Post-COVID HR Practices on Engagement among Mid-Level BFSI Professionals in India

Abstract: The COVID-19 pandemic has dramatically changed the way organisations plan and execute human resource (HR) practices, pushing the organisation to look at flexible working, employee wellbeing support, digital HR systems and performance management by outcome. This study focusses on the impact of the above post-pandemic HR practices on employee engagement among the middle-level employees in the Banking, Financial Services and Insurance (BFSI) industry in India which is a critical yet under-researched segment of the workforce. This study is quantitative and cross sectional, based on Social Exchange Theory, Job Demands–Resources model, and Psychological Contract Theory. Primary data were collected from 325 mid-level employees from public and private sector banks, insurance companies, NBFCs and FinTech companies with the help of a structured questionnaire based on prevalidated engagement scales. The reliability was established (Cronbach's alpha = 0.91 for the composite HR practices scale). All six HR-practice dimensions were positively and significantly correlated with engagement, with flexible work arrangements (β = 0.29) and employee well-being (β = 0.24) being the most powerful predictors of engagement. Collectively the six dimensions explained 61.7% of the variance in engagement (R² = 0.617, p < 0.001). A significant difference was found in the engagement levels between BFSI organisation types using One-way ANOVA, which were higher in FinTech and private banks. The results can be applied to post-pandemic scenario of BFSI and bring practical insights in designing employee- centric HR strategies.

Keywords: Post-COVID HR practices, employee engagement, BFSI sector, mid-level professionals, flexible work, digital HR, employee well-being.