Impact of Sustainable HR Practices on Employee Satisfaction: A Study of Employee Perceptions in Indian Organizations

Abstract

Organizations are increasingly embedding sustainability principles — environmental responsibility, employee well-being, and long-term human capital development — into their human resource (HR) function. This study examines the extent to which employees' perceptions of sustainable HR practices (work-life balance support, green/environmental HR initiatives, employee well-being and development programmes, and long-term career sustainability) are associated with their overall job satisfaction, and whether this relationship differs across organizational sectors.
A descriptive, cross-sectional research design was adopted, using a structured questionnaire administered to full-time employees across manufacturing and IT/services sector organizations in India (N = 300). Data were analysed using percentage analysis, mean and standard deviation, Cronbach's Alpha, Pearson correlation, and independent-samples t-tests, as appropriate.
Employee satisfaction was significantly higher among IT/services sector employees than manufacturing sector employees (t = 4.15, p < 0.001). Perceived sustainable HR practices correlated positively and moderately with employee satisfaction (r = 0.63, p < 0.001) and with organizational commitment (r = 0.57, p < 0.001). All four hypotheses were supported.
The results point to three priorities for organizations seeking to strengthen employee satisfaction through sustainable HR practices: institutionalising work-life balance and well-being programmes rather than treating them as ad hoc benefits, communicating sustainability-linked HR initiatives clearly to employees, and tailoring the pace and depth of implementation to sector-specific working conditions.
Much of the existing empirical evidence on sustainable human resource management (SHRM) and employee outcomes is drawn from Western and East Asian organizational settings. Comparatively little sector-comparative survey evidence exists from Indian manufacturing and services organizations, which is the gap this paper addresses.