The Impact of Employee Experience Factors, Psychological Safety, and Growth Mindset on Employee Engagement in SMEs of Sialkot, Pakistan

Abstract

The paper will be exploring how the employee experience variables, namely physical workspace (PW), digital experience (DE), and leadership interaction (LI) influence employee engagement (EE) in the Small and Medium Enterprises (SMEs) of Sialkot, Pakistan. Based on the literature in the field of organizational psychology, this study is assessing a mediating role of psychological safety (PS) and moderating role of a growth mindset (GM). The conceptual framework was assessed with the help of a sample of 450 SME employees using a Partial Least Squares Structural Equation Modeling (PLS-SEM). Results indicate that, although, PW, DE and LI do not have direct impacts on EE, they have significant accumulation of the psychological safety, which completely mediates their connection with employee engagement. Surprisingly, the growth mindset did not play a key role in mediating the PS-EE relationship. The results underscore how there is need to develop psychologically safe working conditions within the manufacturing SMEs of Sialkot.