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In this modern world with the growing trend of globalization, cultural and environmental changes, and the increased pace of technological advancements, new challenges have appeared in a tremendous manner. In the wake of these recent trends and complexities alongside the worldwide pandemic (COVID-19), organizations are working to provide a self-motivated and highly engaging environment for employees. The study intends to explore the relationship between Transformational Leadership (TFL) and Work Engagement (WE) with the mediating role of Structural Empowerment (SE) and Process Innovation (PI) during COVID-19. The quantitative research methodology was utilized and a simple random sampling technique was used for collection of data from 360 supervisors of banks in Pakistan using questionnaires. Hypotheses are tested with the help of Structural Equation Modeling (SEM) by using AMOS. By using SEM, confirmatory factor analysis revealed a statistically significant model. Outcomes showed a significant connection among TFL, WE, and PI. However, SE only significantly relates to TFL. Partial mediation through PI was discovered with the presence of a significant indirect path between TFL and WE. In contrast, the mediation of SE is not ascertained due to insignificant indirect effects. The digitally evolving banking industry in Pakistan requires engagement at workplace. The organization must be very much aware of the crucial job of leaders for WE as well as for PI just as the SE of employees. The findings of the study also highlight the importance of best HR practices that should work for creating intangible motivators for boosting WE level.
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