Original Research The relationship between employee well-being and organisational effectiveness

Chryssa P. van der Merwe, Benjamin H. Olivier

About the author(s) Chryssa P. van der Merwe, Department of Industrial and Organisational Psychology, College of Economic and Management Sciences, University of South Africa, Pretoria, South Africa
Benjamin H. Olivier, Department of Industrial and Organisational Psychology, College of Economic and Management Sciences, University of South Africa, Pretoria, South Africa

Abstract

Orientation: The changing demands employees experience because of the turbulent and competitive world of work has increased their workload, necessitating a focus on their well-being to ensure their contribution to the effectiveness of organisations.

Research purpose: The purpose of this study was to investigate the relationship between employee well-being (EWB) and organisational effectiveness (OE) in a South African bond origination company.

Motivation for the study: Organisations need to improve their effectiveness to remain competitive and are dependent on the well-being of their employees to achieve this. Understanding the effect of EWB on OE can assist organisations in managing this relationship.

Research design/approach and method: A quantitative cross-sectional approach was used in which a convenient sample of 203 employees completed five questionnaires to measure OE and the four underlying contructs of EWB. A correlation analysis was conducted to determine the statistical relationship between the four EWB constructs and OE.

Main findings: Results indicated a statistically significant positive relationship between job satisfaction, work engagement and OE and a statistically significant negative relationship between Burnout and OE, while no relationship was found between workaholism and OE.

Practical/managerial implications: Managers should implement interventions to increase job satisfaction and work engagement and decrease burnout to increase the performance of their organisations.

Contributions/value-add: This study provides managers with an understanding of how the performance of their organisations can be improved by managing the well-being of their employees.

Keywords

burnout; employee engagement; employee well-being; job satisfaction; organisational effectiveness; organisational performance; workaholism; work engagement.

JEL Codes

L25: Firm Performance: Size, Diversification, and Scope; L85: Real Estate Services; M12: Personnel Management • Executives; Executive Compensation

Sustainable Development Goal

Goal 3: Good health and well-being

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