STRATEGIC HUMAN RESOURCE MANAGEMENT PRACTICES AND EMPLOYEE ENGAGEMENT: A PSYCHOLOGICAL EMPOWERMENT PERSPECTIVE IN THE AFRICAN CONTINENTAL FREE TRADE AGREEMENT CONTEXT

Abstract
This study examines the effect of strategic human resource management (SHRM) practices on employees engagement within the African Continental Free Trade Agreement (AfCFTA) context, anchored on Psychological Empowerment Theory. Specifically, it investigates the influence of strategic talent acquisition, strategic training and development, strategic performance management, strategic reward and recognition, and strategic talent management on employee engagement in AfCFTA-aligned firms in Nigeria. A cross-sectional survey design was adopted, and primary data were collected from 165 employees across 51 AfCFTA-aligned organisations using structured questionnaire, analysed through descriptive statistics and multiple regression analysis. The findings reveal that SHRM practices collectively exert a significant effect on employee engagement (R² = 0.440, p < 0.05). At the individual level, strategic talent acquisition, strategic training and development, and strategic talent management significantly and positively influenced employee engagement, while strategic performance management and strategic reward and recognition showed no significant effect. The study concludes that HR practices enhancing employees’ competence, career growth, and organisational fit are more effective in fostering engagement than transactional or administrative HR mechanisms, providing novel empirical evidence from the under-researched AfCFTA economic context. It is therefore recommended that organisations operating within AfCFTA member states should prioritise competency-based recruitment, continuous training, and structured talent management programmes that offer clear career pathways. Furthermore, performance management and reward systems should be redesigned to emphasise fairness, transparency, and employee development in order to build a more engaged and competitive workforce capable of leveraging AfCFTA opportunities. Keywords: Strategic HRM, Employee Engagement, Psychological Empowerment, AfCFTA.
 

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