Subjective wellbeing and positive employment relationships

1. Subjective wellbeing and positive employment relationships Ms Kelly Windle and Dr Kathryn von Treuer DEAKIN UNIVERSITY November 2008 10th Australian Quality of Life Conference

2. Presentation Outline • 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

3. Psychological Contracts • What is a Psychological Contract (PC)? • The set of perceived mutual obligations (promissory expectations) that exist between an individual employee and their employer • Why are PCs important? • 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

4. Subjective Wellbeing • What is subjective wellbeing (SWB)? • A normally positive state of mind that involves the whole life experience • Stable happiness • Why is SWB important? • Positive emotions build a range of personal resources – physical, social, intellectual, and psychological

5. Research Questions • 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.

6. Background to the research study • 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

7. 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 Figure 1. A proposed model of psychological contract formation depicting the relative impact of five factors that influence contract development. Importance of individual differences Importance of adequacy of social accounts Importance of socialization processes, referents and social cues Importance of unmet expectations Importance of met expectations

8. The type and nature of PCs • There are 3 different empirically derived types of PC: • Relational • Balanced • Transactional • A healthy, engaged, and retained workforce focus on the socio-emotional expectations within their employment relationship

9. Current status of research project • 3 phases of data collection • Multiple organisations are participating • This presentation based on preliminary Time 1 findings from one organisation, answering the research question: • What factors can predict initial PC type in new recruits?

10. Method: Participants and Procedure • 187 new recruits Australia-wide organisation • Participants completed a 20-min on-line survey

11. Measuring the Dependent Variable: Psychological Contract Inventory • Measurement tool developed by Rousseau (1990) • Underlying theory behind the instrument based on Rousseau’s validated model of PC types and components (see Table)

12. Measuring the Independent Variables

13. Analyses (1) – PC type • 3 standard (enter) multiple regressions with the outcome (dependent variable) being the three different PC types: relational, balanced, transitional • Independent Variables entered: • 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

14. Results (1) – PC type • Relational PC significantly predicted by • 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 • Balanced PC significantly predicted by • 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 • Did not return a useful model (only 7% variance; Employer fulfilment and information seeking around Career Development being the only significant predictors)

15. Analysis (2) – Balanced PC component • 3 standard (enter) multiple regressions with the outcome different Balanced PC components: external employability, internal advancement, dynamic performance • Independent Variables entered • 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

16. Results (2) – Balanced PC components • 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

17. Interpretations of Analysis/Results (1) and (2)

18. 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: standard of living standard of health what you are achieving in life Analyses (3) – A closer look at Subjective Wellbeing • personal relationships • how safe you feel • feeling part of your community • your future security • Correlation analysis between • PWI domains • Balanced PC • Dynamic Performance

19. Results (3a) – A closer look at Subjective Wellbeing • Balanced PC – 9% variance explained. Significant predictors: • Future security (β=.281, p=.001, sr2=.03) • Achieving in life (β=.177, p=.037, sr2=.01) • Dynamic performance – 10% variance explained. Predictors: • Future security (β=.271, p=.002, sr2=.03) • Achieving in life (β=.161, p=.055, sr2=.01)

20. Results (3b) – A closer look at Subjective Wellbeing • Correlation analysis found: * Significant at p<.05 ** Significant at p<.01

21. Conclusions: Subjective Wellbeing and Employment Relationships • 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

22. Subjective Wellbeing and Employment Relationships: Practical Applications • 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.

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