Mutual Gains? Health‐Related HRM, Collective Well‐Being and Organizational Performance

Abstract

Research on the effects of HR management on employees’ psychological well‐being has yielded inconclusive results. Moreover, prior works remain unclear on whether human resource practices specifically aimed at enhancing employee well‐being also benefit organizational performance. Building on signaling theory and conservation of resources theory, our study investigates the relationship between health‐related human resource management (HHRM), employees’ collective well‐being (in terms of collective emotional exhaustion and collective engagement) and organizational performance. Results from a multi‐source field study of top management team members, HR representatives, and 15,952 employees in 88 organizations reveal a positive indirect relationship between HHRM and employees’ collective well‐being, which is mediated by employees’ positive stress mindset. In addition, we find this positive indirect association to depend on the level of transformational leadership climate in organizations. Finally, our findings also show a positive indirect relationship between HHRM and company performance, mediated by employees’ positive stress mindset and collective engagement.

The challenge of increasing employees' well‐being and performance: How human resource management practices and engaging leadership work together toward reaching this goal

“…Despite strong interest in the impact of HRM on firm performance (Huettermann & Bruch, 2019; Yang, Huang, Tang, Yang, & Wu, 2019), further understanding of the mediating processes through which HRM impacts on increased performance is needed (Edgar, Geare, Halhjem, Reese, & Thoresen, 2015). Organizations seek to maximize their internal capabilities through rare and inimitable resources that are socially complex and causally ambiguous (Barney & Wright, 1998).…”

“…In some contexts, changes at work and in working conditions are generating harmful consequences for employees, and negatively impacting on organizations. These changes justify a shift in the focus of human resource management (HRM) research toward employee well‐being (Guest, 2017; Huettermann & Bruch, 2019). Since the 2008 financial crisis, pressure at work to achieve ambitious levels of productivity has intensified, leading to a decline in both employee well‐being and performance (Guest, 2017).…”

“…Against this background, HR practices can play a relevant and strategic role in improving employees' well‐being, as well as increasing individual performance. However, we have identified a number of concerns in the HRM–well‐being relationship, as voiced by Guest (2017) and Huettermann and Bruch (2019).…”

“…For example, future studies might consider hedonic well‐being or feelings of attachment to others to complement Guerci's well‐being conceptualization. Others extended the conceptualization of work‐related well‐being, opening the option of integrating the social and hedonic dimensions of well‐being in subsequent studies (Heffernan & Dundon, 2016; Huettermann & Bruch, 2019; Hauff et al, 2020).…”

Management Research that Makes a Difference: Broadening the Meaning of Impact

“…Studies that effectively do so communicate the basic, underlying principle from their findings and describe how it may be applied in one or two different and recognizable circumstances or to various groups of individuals. For example, Huettermann andBruch (2019, p. 1055-65) communicate a big picture recommendation ('HHRM should incorporate HR practices that focus on both prevention of and recovery from psychological illnesses, that are targeted at both employees and leaders, that receive support from the organization's top management, and that are constantly evaluated') that is easy to comprehend conceptually. They then provide additional details (e.g., highlighting not only the role of leaders but specifically of transformational leadership, and supporting their recommendation with research showing such leadership style can be learned).…”