Purpose Although existing studies show that well-being-oriented human resource management (WBHRM) improves employee performance in the work domain, its influence on employee insomnia remains unclear. Drawing on conservation of resources theory, we explore whether, how and when WBHRM reduces employee insomnia. Design/methodology/approach We conducted a scenario-based experiment (N = 320) and a two-phase empirical survey (N = 259) to test the theoretical model. Findings WBHRM reduces employee insomnia by mitigating negative rumination. Respectful leadership strengthens the positive effect of WBHRM on positive rumination and the negative effect of WBHRM on negative rumination. It also moderates the indirect effect of WBHRM on insomnia through negative rumination. Practical implications The company can reduce employee insomnia by implementing WBHRM practices, particularly when combined with respectful leadership. Originality/value This study extends WBHRM research into the non-work domain, offering novel insights into its role in reducing insomnia.