Subjective wellbeing and Subjective wellbeing and positive employment positive employment

relationshipsrelationshipsMs Kelly Windle and Dr Kathryn von TreuerMs Kelly Windle and Dr Kathryn von Treuer

DEAKIN UNIVERSITYDEAKIN UNIVERSITYNovember 2008November 2008

1010thth Australian Quality of Life Conference Australian Quality of Life Conference

Presentation OutlinePresentation Outline Psychological Contracts and Subjective Wellbeing Psychological Contracts and Subjective Wellbeing Background to the current research Background to the current research PC characteristics – types and formationPC characteristics – types and formation Factors impacting Psychological Contract Factors impacting Psychological Contract

developmentdevelopment MethodMethod Analysis and resultsAnalysis and results Conclusions surrounding subjective wellbeing Conclusions surrounding subjective wellbeing

and employment relationshipsand employment relationships Practical implications for the scientist-Practical implications for the scientist-

practitionerpractitioner

Psychological ContractsPsychological Contracts

What is a Psychological Contract What is a Psychological Contract (PC)?(PC)? The set of perceived mutual obligations The set of perceived mutual obligations

(promissory expectations) that exist between (promissory expectations) that exist between an individual employee and their employeran individual employee and their employer

Why are PCs important?Why are PCs important? The PC forms the foundation of the The PC forms the foundation of the

employment relationshipemployment relationship Related to many organizational outcomes Related to many organizational outcomes

including job satisfaction, org commitment, including job satisfaction, org commitment, perceived org support, employee intention to perceived org support, employee intention to leave, org climateleave, org climate

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

Research QuestionsResearch Questions

1.1. How does the PC form and develop over How does the PC form and develop over time?time?

2.2. What are the social factors that influence What are the social factors that influence PC change and development?PC change and development?

3.3. Does wellbeing have a mediating role in the Does wellbeing have a mediating role in the relationship between socialisation factors relationship between socialisation factors and the PC?and the PC?

4.4. What factors predict PC type in new What factors predict PC type in new recruits?recruits?

These important research questions These important research questions investigate factors relevant in assisting the investigate factors relevant in assisting the development and retention of successful development and retention of successful workplaces.workplaces.

Background to the Background to the research studyresearch study

Our research is unique:Our research is unique: Collects data from new recruitsCollects data from new recruits LongitudinalLongitudinal ProspectiveProspective Investigates PC development and formationInvestigates PC development and formation PC type is the Dependent Variable, not the PC type is the Dependent Variable, not the

Independent VariableIndependent Variable First study to consider SWB and PC First study to consider SWB and PC

relationshiprelationship Aims to test a complete model of PC Aims to test a complete model of PC

development, rather than individual development, rather than individual componentscomponents

Proposed model of PC formation Proposed model of PC formation and temporal developmentand temporal development

Figure 1.Figure 1. A proposed model of psychological contract formation depicting the relative A proposed model of psychological contract formation depicting the relative impact of five factors that influence contract development.impact of five factors that influence contract development.

Importance of individual differences

Importance of adequacy of social accounts

Importance of unmet expectations

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 socialization processes, referents and social cues

Importance of met expectations

The type and nature of PCsThe type and nature of PCs

There are 3 different empirically There are 3 different empirically derived types of PC:derived types of PC: RelationalRelational BalancedBalanced TransactionalTransactional

A healthy, engaged, and retained A healthy, engaged, and retained workforce focus on the socio-workforce focus on the socio-emotional expectations within their emotional expectations within their employment relationship employment relationship

Current status of Current status of research projectresearch project

3 phases of data collection 3 phases of data collection Multiple organisations are Multiple organisations are

participating participating

This presentation based on This presentation based on preliminary Time 1 findings from preliminary Time 1 findings from one organisation, answering the one organisation, answering the research question:research question:

What factors can predict initial PC What factors can predict initial PC type in new recruits?type in new recruits?

Method: Participants and Procedure

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 Measuring the Dependent Variable: Variable:

Psychological Contract Psychological Contract InventoryInventory

Measurement Measurement tool developed by tool developed by Rousseau (1990)Rousseau (1990)

Underlying Underlying theory behind the theory behind the instrument based instrument based on Rousseau’s on Rousseau’s validated model validated model of PC types and of PC types and components (see components (see Table)Table)

PC TypePC Type PC componentPC component

Balanced Career Development – External MarketDynamic Performance RequirementsCareer Development – Internal Market

Relational LoyaltyStability

Transactional

NarrowShort-term

Measuring the Independent Measuring the Independent VariablesVariables

IV IV constructconstruct

Measurement toolMeasurement tool DescriptionDescription

Individual differences

Demographic data Age, gender, education, country of birth, industry, work location, shift schedule type, work type, job level, orientation experience

Personal Wellbeing Index-Adult

9-item scale; 1 overall satisfaction, 8 specific life domains. 0-10 Likert Response Scale, 3 anchorsCronbach Alpha range: .70-.85

Socialisation processes, cues, referent information

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.

Met expectations

Psychological Contract Inventory

5 items measuring employer and employee fulfilment of commitments and promises

Analyses (1) – PC typeAnalyses (1) – PC type

3 standard (enter) multiple regressions with 3 standard (enter) multiple regressions with the outcome (dependent variable) being the the outcome (dependent variable) being the three different PC types: relational, balanced, three different PC types: relational, balanced, transitionaltransitional

Independent Variables entered:Independent Variables entered: Subjective wellbeing (PWI score)Subjective wellbeing (PWI score) Employer fulfilment of obligations/promisesEmployer fulfilment of obligations/promises Employee fulfilment of obligations/promisesEmployee fulfilment of obligations/promises 4 socialisation knowledge scales4 socialisation knowledge scales 5 information-seeking scales5 information-seeking scales Orientation amount and quality perceptionsOrientation amount and quality perceptions

Results (1) – PC typeResults (1) – PC type Relational PC significantly predicted by Relational PC significantly predicted by

Employer fulfilment (Employer fulfilment (ββ=.391, =.391, pp<.000, sr<.000, sr22=.08)=.08) Role knowledge Role knowledge ((ββ=.229, =.229, pp=.011, sr=.011, sr22=.02)=.02) Organisation knowledge Organisation knowledge ((ββ=.199, =.199, pp=.013, sr=.013, sr22=.02)=.02) 48% variance explained48% variance explained

Balanced PC significantly predicted byBalanced PC significantly predicted by Employer fulfilment Employer fulfilment ((ββ=..299, =..299, pp<.000, sr<.000, sr22=.05)=.05) Subjective Wellbeing Subjective Wellbeing ((ββ=.134, =.134, pp=.031, sr=.031, sr22=.02) =.02) 39% variance explained39% variance explained Subjective Wellbeing significantly correlated with IVs: Subjective Wellbeing significantly correlated with IVs:

employer fulfilment, employee fulfilment, social employer fulfilment, employee fulfilment, social knowledge, interpersonal resourcesknowledge, interpersonal resources

Transactional PCTransactional PC Did not return a useful model (only 7% variance; Did not return a useful model (only 7% variance;

Employer fulfilment and information seeking around Employer fulfilment and information seeking around Career Development being the only significant predictors)Career Development being the only significant predictors)

Analysis (2) – Analysis (2) – Balanced PC componentBalanced PC component

3 standard (enter) multiple regressions with 3 standard (enter) multiple regressions with the outcome different Balanced PC the outcome different Balanced PC components: external employability, internal components: external employability, internal advancement, dynamic performanceadvancement, dynamic performance

Independent Variables enteredIndependent Variables entered Subjective wellbeingSubjective wellbeing Employer fulfilment of obligations/promisesEmployer fulfilment of obligations/promises Employee fulfilment of obligations/promisesEmployee fulfilment of obligations/promises 4 socialisation knowledge scales4 socialisation knowledge scales 5 information-seeking scales5 information-seeking scales Orientation amount and quality perceptionsOrientation amount and quality perceptions

Results (2) – Results (2) – Balanced PC componentsBalanced PC components

External employability and Internal External employability and Internal advancement did not return Subjective advancement did not return Subjective Wellbeing as a driver, however:Wellbeing as a driver, however:

Balanced dynamic performance was Balanced dynamic performance was significantly predicted by:significantly predicted by: Employer fulfilment (Employer fulfilment (ββ=.370, =.370, pp<.000, sr<.000, sr22=.07)=.07) Subjective wellbeing (Subjective wellbeing (ββ=.132, =.132, pp=.025, =.025,

srsr22=.02)=.02) Employee fulfilment Employee fulfilment ((ββ=.155, =.155, pp=.032, sr=.032, sr22=.01)=.01) 45% variance explained45% variance explained

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

Result: what did we Result: what did we find?find?

Interpretation: what does it mean?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) – Analyses (3) – A closer look at Subjective A closer look at Subjective

WellbeingWellbeing 2 standard (enter) multiple regressions, 2 standard (enter) multiple regressions,

outcomes: “Balanced PC” and “Dynamic outcomes: “Balanced PC” and “Dynamic Performance”Performance”

Independent Variables included in regression Independent Variables included in regression model were the 7 wellbeing domains included in model were the 7 wellbeing domains included in calculation of the PWI: calculation of the PWI:

standard of livingstandard of living standard of healthstandard of health what you are achieving in lifewhat you are achieving in life

personal personal relationshipsrelationships

how safe you feelhow safe you feel feeling part of your feeling part of your

communitycommunity your future securityyour future security Correlation analysis between Correlation analysis between

PWI domains PWI domains Balanced PC Balanced PC Dynamic PerformanceDynamic Performance

Results (3a) – Results (3a) – A closer look at Subjective A closer look at Subjective

WellbeingWellbeing Balanced PC – 9% variance explained. Balanced PC – 9% variance explained.

Significant predictors:Significant predictors: Future security (Future security (ββ=.281, =.281, pp=.001, sr=.001, sr22=.03)=.03) Achieving in life Achieving in life ((ββ=.177, =.177, pp=.037, sr=.037, sr22=.01)=.01)

Dynamic performance – 10% variance Dynamic performance – 10% variance explained. Predictors:explained. Predictors: Future security (Future security (ββ=.271, =.271, pp=.002, sr=.002, sr22=.03)=.03) Achieving in life Achieving in life ((ββ=.161, =.161, pp=.055, sr=.055, sr22=.01)=.01)

Results (3b) – Results (3b) – A closer look at Subjective A closer look at Subjective

WellbeingWellbeing Correlation analysis found:Correlation analysis found:

Balanced PCBalanced PC Dynamic Dynamic PerformancePerformance

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: Conclusions: Subjective Wellbeing and Subjective Wellbeing and Employment RelationshipsEmployment Relationships

Subjective Wellbeing informs the Subjective Wellbeing informs the development of new employee’s development of new employee’s expectations regarding equal and expectations regarding equal and mutually supportive employment mutually supportive employment relationshipsrelationships

Of particular impact; the wellbeing Of particular impact; the wellbeing domains of domains of Achievements in life,Achievements in life, Future security, andFuture security, and Feeling part of a communityFeeling part of a community

Subjective Wellbeing and Subjective Wellbeing and Employment Relationships: Employment Relationships:

Practical ApplicationsPractical Applications Workplace strategies increasing personal Workplace strategies increasing personal

wellbeing may have positive effects on the wellbeing may have positive effects on the employment relationship.employment relationship.

Organisations wishing to develop Organisations wishing to develop adaptable, resilient, and retained adaptable, resilient, and retained workforces may benefit from promoting workforces may benefit from promoting aspects of wellbeing.aspects of wellbeing.

Organisations and managers should be Organisations and managers should be particularly alert to workplace issues that particularly alert to workplace issues that threaten sustained feelings of achievement, threaten sustained feelings of achievement, security, and community in their security, and community in their employees. employees.

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