The mediating role of well-being, with Violetta Khoreva
Highlights
The purpose of this paper is to examine the associations between the skill-, motivation- and opportunity-enhancing dimensions of human resource (HR) practices and in-role and innovative job performance. Furthermore, it considers the mediating effects of psychological, physical and social employee well-being on these associations. Structural equation modeling was utilized to analyze multi-source survey data from a sample of 300 employees and 34 immediate supervisors in a professional service company in Finland. The results indicate that whereas physical and social employee well-being partially mediate the association between skill- and opportunity-enhancing HR practices and in-role job performance, psychological employee well-being partially mediates the association between motivation-enhancing HR practices and innovative job performance. Given its cross-sectional nature, the authors cannot completely exclude the possibility of common method bias influencing the study results. The authors thus call for longitudinal research to examine the nature of causality within the associations analyzed in the study. This study does not support the notion of trade-offs between HR practices, employee well-being and employee performance. Instead, it illustrates that even though different dimensions of HR practices enhance different dimensions of employee well-being, which, in turn, increase different types of employee performance, the different dimensions of HR practices work in the same direction and do not generate any unintended consequences in terms of reduced employee physical well-being.
Sustainable Development Goals
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Cite
Khoreva, V., & Wechtler, H. (2018). HR practices and employee performance: the mediating role of well-being. Employee Relations.
Practitioners' bit
Organizations invest heavily in human resource (HR) practices to boost employee performance. But here's the catch: not all HR practices impact performance in the same way, and the well-being of employees plays a crucial role in bridging the gap.
This research sheds light on a fascinating dynamic: HR practices that enhance skills and opportunities, such as providing training or promoting teamwork, directly improve employees' ability to perform their core roles. These practices also boost physical and social well-being by reducing stress and fostering better workplace relationships. On the other hand, HR practices designed to motivate, such as meaningful rewards or fair compensation, strengthen psychological well-being, encouraging creativity and innovative thinking.
What does this mean for organizations? A balanced approach is key. Investing in HR practices that support multiple aspects of employee well-being—psychological, physical, and social—not only enhances individual performance but also creates a healthier, more engaged workforce. This is a win-win: happier employees drive better results, paving the way for sustained organizational success.
For managers, the takeaway is clear: well-being isn’t just a nice-to-have—it’s a critical link between HR strategies and performance. The challenge lies in tailoring practices to create an environment where employees can thrive and excel.
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