Technological progress has been the significant element for the organizational success and can be achieve through effectively use of human resource and also required the emphasis of recent literature. Hence, the present study examines the impact of human resource management (HRM) challenges such as employee engagement and retention on the employee productivity and employee productivity impact of technological progress in healthcare institutions in Iraq. The study also examines the moderating role of institutional support among employee engagement, employee retention and employee productivity in healthcare institutions in Iraq. The study gathered the data from the employees of healthcare institutions of Iraq using questionnaires. The study also checks the association among understudy variables used smart-PLS. The outcomes revealed that the employee engagement and retention have a positive association with employee productivity and employee productivity has a positive impact on technological progress in healthcare institutions. The results also exposed that the institutional support significantly moderates among employee engagement, employee retention and employee productivity in healthcare institutions. The study provides the help to the regulators in making regulations related to improve the employee productivity and technological progress using effective employee engagement and retention.