Insights into human resources management practices, employee well-being and financial performance within a specific context of the Pakistani telecommunication industry

In the context of Pakistan's telecommunication industry, this study examines the influence of HRM practices on financial performance, with a particular focus on the mediating roles of work intensification and employee well-being, both critical factors in determining employee productivity and satisfaction. The primary objective of this research was to explore the relationship between HRM practices, namely participatory decision-making, supportive management, information sharing, and flexible work, and the financial performance of telecommunication firms in Pakistan. This study adopted a quantitative research design, collecting data through a structured questionnaire distributed to employees of four major telecommunication firms (Jazz, Ufone, PTCL, Zong) operating in the Punjab province of Pakistan. A total of 800 questionnaires were distributed, and 360 valid responses were received. Structural Equation Modeling (SEM) using SmartPLS 4 was employed to analyze the data. The findings revealed that all four HRM practices—participatory decision-making, supportive management, information sharing, and flexible work—had a positive and significant impact on the financial performance of telecommunication firms. Employee well-being was found to significantly mediate the relationship between HRM practices and financial performance, whereas work intensification played a partial mediating role. This study contributes to the HRM literature by providing empirical evidence from the telecommunication sector in a developing economy, Pakistan. The originality of the study lies in its focus on the telecommunication sector and the unique cultural and economic context of Pakistan, offering insights that may be applicable to other industries in similar settings. Practically, it highlights the importance of implementing HRM practices that prioritize employee well-being to enhance financial outcomes. Theoretically, it adds to the growing body of knowledge on the role of mediators like work intensification and employee wellbeing in HRM-performance relationships. However, the study is limited by its focus on one sector and one geographical region, restricting the generalizability of the findings. Future research should explore other sectors and regions, as well as consider longitudinal studies to better understand the long-term effects of HRM practices on financial performance