Although existing studies show that socially responsible human resource management (SRHRM) practices positively influence employees’ outcome at work domain, the social impacts of SRHRM practices on employee’s insomnia remain unexplored. Drawing on the appraisal theory of emotion, we explore whether, how, and when SRHRM practices reduce employees’ insomnia. Using multiphase and multilevel data from 270 employees in 52 companies, we find that SRHRM practices negatively predict employee insomnia, and the relationship is mediated by employee’s hope and anxiety. Furthermore, business threat due to COVID-19 weakens the positive relationship between SRHRM practices and employees’ hope, whereas mitigates the negative relationship between SRHRM and employees’ anxiety. We also find that business threat due to COVID-19 influences the indirect effect of SRHRM practices on employee’s insomnia via their hope and anxiety. Our study contributes to understanding the social impacts of SRHRM practices on employee insomnia at the non-work domain, especially after the COVID-19 outbreak.