Employee psychological well-being and job performance: exploring mediating and moderating mechanisms

Abstract

Purpose: Given the importance of employee psychological well-being to job performance, this study aims to investigate the mediating role of affective commitment between psychological well-being and job performance while considering the moderating role of job insecurity on psychological well-being and affective commitment relationship. Design/methodology/approach: The data were gathered from employees working in cellular companies of Pakistan using paper-and-pencil surveys. A total of 280 responses were received. Hypotheses were tested using structural equation modeling technique and Hayes’s Model 1. Findings: Findings suggest that affective commitment mediates the association between psychological well-being (hedonic and eudaimonic) and employee job performance. In addition, perceived job insecurity buffers the association of psychological well-being (hedonic and eudaimonic) and affective commitment. Practical implications: The study results suggest that fostering employee psychological well-being may be advantageous for the organization. However, if interventions aimed at ensuring job security are not made, it may result in adverse employee work-related attitudes and behaviors. Originality/value: The study extends the current literature on employee well-being in two ways. First, by examining psychological well-being in terms of hedonic and eudaimonic well-being with employee work-related attitude and behavior. Second, by highlighting the prominent role played by perceived job insecurity in explaining some of these relationships.