Employee Well‐being and the HRM–Organizational Performance Relationship: A Review of Quantitative Studies

Abstract

There is a lack of consensus on the role of employee well‐being in the human resource management–organizational performance relationship. This review examines which of the competing perspectives –‘mutual gains’ or ‘conflicting outcomes’– is more appropriate for describing this role of employee well‐being. In addition, this review examines whether study attributes such as the measurement of key variables, the level of analysis and the study design affect a study's outcomes. The review covers 36 quantitative studies published from 1995 to May 2010. Employee well‐being is described here using three dimensions: happiness, health and relationship. The main findings are that employee well‐being in terms of happiness and relationship is congruent with organizational performance (mutual gains perspective), but that health‐related well‐being appears to function as a conflicting outcome. Directions for future research and theoretical development are suggested.

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