Abstract:
The current study investigates the relationships between employee engagement, organizational performance and mediating role of monetary benefits on these variables in the public sector organization of Pakistan. Positivistic Deductive approach was utilized and data was collected from 370 respondents from a public sector organization of Pakistan having a total population size of approx. 40,000 employees. Results have been drawn with the help of SPSS and PLS-4. The findings reveal that employee engagement significantly enhances organization performance and both variables are significantly mediated by monetary benefits. Practical implications include thoughtful insights for policymakers, leaders and managers for developing HR strategies that can foster employee engagement and to devise compensation packages that adequately translates for employee efforts. Future research directions are suggested to further explore the relationship of these variables across diverse sectors, cultural contexts, and perform longitudinal studies, moreover performing more research using other potential mediators and moderators in order to further enhance the understanding of these variables.
