Transcript Subjective wellbeing and positive employment relationships

Subjective wellbeing and positive
employment relationships
Ms Kelly Windle and Dr Kathryn von Treuer
DEAKIN UNIVERSITY
November 2008
10th Australian Quality of Life Conference
Presentation Outline
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Psychological Contracts and Subjective Wellbeing
Background to the current research
PC characteristics – types and formation
Factors impacting Psychological Contract
development
Method
Analysis and results
Conclusions surrounding subjective wellbeing and
employment relationships
Practical implications for the scientist-practitioner
Psychological Contracts
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What is a Psychological Contract (PC)?
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The set of perceived mutual obligations (promissory
expectations) that exist between an individual employee
and their employer
Why are PCs important?
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The PC forms the foundation of the employment
relationship
Related to many organizational outcomes including job
satisfaction, org commitment, perceived org support,
employee intention to leave, org climate
Subjective Wellbeing
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What is subjective wellbeing (SWB)?
A normally positive state of mind that involves
the whole life experience
 Stable happiness
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Why is SWB important?
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Positive emotions build a range of personal
resources – physical, social, intellectual, and
psychological
Research Questions
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How does the PC form and develop over time?
What are the social factors that influence PC
change and development?
Does wellbeing have a mediating role in the
relationship between socialisation factors and the
PC?
What factors predict PC type in new recruits?
These important research questions investigate factors
relevant in assisting the development and retention of
successful workplaces.
Background to the research study
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Our research is unique:
Collects data from new recruits
 Longitudinal
 Prospective
 Investigates PC development and formation
 PC type is the Dependent Variable, not the
Independent Variable
 First study to consider SWB and PC relationship
 Aims to test a complete model of PC development,
rather than individual components
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Proposed model of PC formation and temporal
development
Pre-employment and
Recruitment:
Formation of contract
characteristics
Early Socialization:
Formation of contract
content expectations
Evaluation and Revision:
Continuous development of contract content and characteristics
across the lifespan of the psychological contract
Importance of
individual differences
Importance of
socialization processes,
referents and social cues
Importance of met
expectations
Importance of adequacy of
social accounts
Importance of unmet
expectations
Figure 1. A proposed model of psychological contract formation depicting the relative impact of five factors that
influence contract development.
The type and nature of PCs
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There are 3 different empirically derived types
of PC:
Relational
 Balanced
 Transactional
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A healthy, engaged, and retained workforce
focus on the socio-emotional expectations
within their employment relationship
Current status of research project
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3 phases of data collection
Multiple organisations are participating
This presentation based on preliminary
Time 1 findings from one organisation,
answering the research question:
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What factors can predict initial PC type in
new recruits?
Method: Participants and Procedure
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187 new recruits
Australia-wide
organisation
Participants completed
a 20-min on-line survey
Gender
N
%
Male
107
58%
Female
78
42%
Age
N
%
18-24
42
23%
25-29
44
24%
30-34
33
18%
35-39
31
17%
40-44
17
9%
45-49
15
8%
50+
5
3%
Measuring the Dependent Variable:
Psychological Contract Inventory
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Measurement tool
developed by
Rousseau (1990)
Underlying theory
behind the
instrument based
on Rousseau’s
validated model of
PC types and
components (see
Table)
PC Type
PC component
Balanced
Career Development – External
Market
Dynamic Performance Requirements
Career Development – Internal
Market
Relational
Loyalty
Stability
Transactional
Narrow
Short-term
Measuring the Independent Variables
IV construct
Measurement tool
Description
Individual
differences
Demographic data
Age, gender, education, country of birth, industry, work
location, shift schedule type, work type, job level,
orientation experience
Personal Wellbeing IndexAdult
9-item scale; 1 overall satisfaction, 8 specific life domains.
0-10 Likert Response Scale, 3 anchors
Cronbach Alpha range: .70-.85
Psychological Contract
Inventory – Responsibility
measure
Item: Who has responsibility for making commitments on
behalf of your employer
EASE Socialisation Scale
4 scales for components of socialisation knowledge:
social, role, interpersonal support, and organisation
Information-seeking
behaviours
5 scales, identical 9-items in each: career development
opportunities, job content/work role requirements, work
environment conditions, financial reward/benefits,
work/life balance.
Psychological Contract
Inventory
5 items measuring employer and employee fulfilment of
commitments and promises
Socialisation
processes,
cues, referent
information
Met
expectations
Analyses (1) – PC type
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3 standard (enter) multiple regressions with the
outcome (dependent variable) being the three different
PC types: relational, balanced, transitional
Independent Variables entered:
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Subjective wellbeing (PWI score)
Employer fulfilment of obligations/promises
Employee fulfilment of obligations/promises
4 socialisation knowledge scales
5 information-seeking scales
Orientation amount and quality perceptions
Results (1) – PC type
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Relational PC significantly predicted by
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Balanced PC significantly predicted by
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Employer fulfilment (β=.391, p<.000, sr2=.08)
Role knowledge (β=.229, p=.011, sr2=.02)
Organisation knowledge (β=.199, p=.013, sr2=.02)
48% variance explained
Employer fulfilment (β=..299, p<.000, sr2=.05)
Subjective Wellbeing (β=.134, p=.031, sr2=.02)
39% variance explained
Subjective Wellbeing significantly correlated with IVs: employer
fulfilment, employee fulfilment, social knowledge, interpersonal resources
Transactional PC
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Did not return a useful model (only 7% variance; Employer fulfilment
and information seeking around Career Development being the only
significant predictors)
Analysis (2) –
Balanced PC component
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3 standard (enter) multiple regressions with the
outcome different Balanced PC components: external
employability, internal advancement, dynamic
performance
Independent Variables entered
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Subjective wellbeing
Employer fulfilment of obligations/promises
Employee fulfilment of obligations/promises
4 socialisation knowledge scales
5 information-seeking scales
Orientation amount and quality perceptions
Results (2) –
Balanced PC components
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External employability and Internal
advancement did not return Subjective
Wellbeing as a driver, however:
Balanced dynamic performance was significantly
predicted by:
Employer fulfilment (β=.370, p<.000, sr2=.07)
 Subjective wellbeing (β=.132, p=.025, sr2=.02)
 Employee fulfilment (β=.155, p=.032, sr2=.01)
 45% variance explained
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Interpretations of Analysis/Results
(1) and (2)
Result: what did we find?
Interpretation: what does it mean?
Subjective wellbeing informs
development of a Balanced PC
Subjective wellbeing impacts the extent to which an employee will develop
expectations surrounding an extended and equal employment relationship
where both employee and employer contribute highly to each other’s learning,
growth, and success.
Suggests that subjective wellbeing could drive promissory expectations
surrounding personal development, and the related ability of employees to
adapt to ever-changing performance demands.
Specifically, subjective
wellbeing informs development
of the dynamic performance
component of a Balanced PC
Subjective wellbeing impacts the extent to which an employee feels obligated to
successfully meet new and continually changing performance requirements to
help their organisation remain competitive.
Subjective wellbeing also impacts the extent to which an employee perceives
their employer has promised to provide continuous learning and support the
employee to meet these dynamic performance requirements.
Subjective wellbeing correlated
significantly with employer
fulfilment, employee fulfilment,
social knowledge, interpersonal
resources
Wellbeing is related to the interpersonal/social variables in our proposed
model.
Model suggests social referents and social cues are important factors in shaping
the psychological contract; it appears Wellbeing is important to these factors.
Analyses (3) –
A closer look at Subjective Wellbeing
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2 standard (enter) multiple regressions, outcomes:
“Balanced PC” and “Dynamic Performance”
Independent Variables included in regression model
were the 7 wellbeing domains included in calculation
of the PWI:
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standard of living
standard of health
what you are achieving
in life
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Correlation analysis between
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PWI domains
Balanced PC
Dynamic Performance
personal relationships
how safe you feel
feeling part of your
community
your future security
Results (3a) –
A closer look at Subjective Wellbeing
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Balanced PC – 9% variance explained. Significant
predictors:
Future security (β=.281, p=.001, sr2=.03)
 Achieving in life (β=.177, p=.037, sr2=.01)
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Dynamic performance – 10% variance explained.
Predictors:
Future security (β=.271, p=.002, sr2=.03)
 Achieving in life (β=.161, p=.055, sr2=.01)
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Results (3b) –
A closer look at Subjective Wellbeing
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Correlation analysis found:
Balanced PC
Dynamic Performance
Standard of living
r = .128, p = .014*
r = .157, p = .003**
Standard of health
r = .096, p = .050*
r = .101, p = .042*
Achieving in life
r = .259, p < .000**
r = .274, p < .000**
Personal relationships
r = .094, p = .054
r = .122, p = .019*
How safe you feel
r = .134, p = .011*
r = .188, p = .001**
Feeling part of community
r = .189, p = .001**
r = .203, p < .001**
Future security
r = .302, p < .000**
r = .322, p < .000**
* Significant at p<.05
** Significant at p<.01
Conclusions:
Subjective Wellbeing and
Employment Relationships
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Subjective Wellbeing informs the development
of new employee’s expectations regarding equal
and mutually supportive employment
relationships
Of particular impact; the wellbeing domains of
Achievements in life,
 Future security, and
 Feeling part of a community
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Subjective Wellbeing and Employment
Relationships: Practical Applications
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Workplace strategies increasing personal wellbeing
may have positive effects on the employment
relationship.
Organisations wishing to develop adaptable,
resilient, and retained workforces may benefit
from promoting aspects of wellbeing.
Organisations and managers should be particularly
alert to workplace issues that threaten sustained
feelings of achievement, security, and community
in their employees.
References
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