Workers in the organization faced several challenges during COVID-19, such as stress, anxiety, and concerns about job security. Human resource managers sought to implement employee engagement strategies to support staff in overcoming mental trauma while maintaining the organization’s productivity. The aim of the study is to investigate and assess the engagement practices of the MSME sector in emergency situations like COVID-19. The COVID-19 pandemic has both financial and psychological effects on the overall economy. The MSME faces challenges regarding employee engagement in these situations. Most of the employees in MSME come from the unprofitable sector, which is significant as they form the essential support of the economy and help maintain its stability. This acts as the rationale for engaging in the following research. The research assists in understanding the various strategies an organization can adopt to handle its human resources during both contingency and pandemic scenarios.