The Impact of Work Engagement on Future Occupational Rankings, Wages, Unemployment, and Disability Pensions—A Register-Based Study of a Representative Sample of Finnish Employees

Abstract

Despite ample interest in the potential consequences of work engagement over the last two decades, the question of whether work engagement predicts proximal and more distal career-related outcomes has gained surprisingly little attention. Using Conservation of Resources (COR) theory and a sustainable careers framework, the aim of this study was to investigate whether work engagement predicts register-based outcomes of wages, moves in occupational rankings, unemployment, and disability pensions. We used nationally representative survey data (n = 4876; response rate 68.7%) on Finnish employees derived from the Quality of Work Life Survey (QWLS) and matched respondent data to the Finnish Longitudinal Employer–Employee Data (FLEED), which covered the period 2013–2015. We utilized ordinary least squares (OLS) and instrumental variable (IV) estimations to strengthen causality in the analyses. Even after controlling for outcomes at baseline and several covariates, e.g., health, we found that work engagement positively predicted future wages and the probability of rising in occupational rankings, and negatively predicted future unemployment and disability pensions. This study extends the scope of the possible benefits of work engagement for employees, organizations, and society at large and contributes to career research by indicating the importance of work engagement for objectively measured indicators of sustainable careers.

The social psychology of work engagement: state of the field

“…When employees feel vigorous and enthusiastic while working, they thrive and continuously develop themselves (Bakker and Schaufeli, 2008) – which contributes to career satisfaction. In a recent study, Hakanen et al. (2021) showed that work engagement also has important implications for objective career success.…”

“…When employees feel vigorous and enthusiastic while working, they thrive and continuously develop themselves (Bakker and Schaufeli, 2008) which contributes to career satisfaction. In a recent study, Hakanen et al (2021) showed that work engagement also has important implications for objective career success. The authors found that work engagement had a positive impact on future wages and the probability of rising in occupational rankings and a negative impact on future unemployment and disability pensions.…”

Professional Social Media Usage and Work Engagement Among Professionals in Finland Before and During the COVID-19 Pandemic: Four-Wave Follow-Up Study

“…Work engagement, as an energetic resource that employees may possess, should be a key priority in organizations, as it can increase life satisfaction and can prevent employees from psychological distress, depression, anxiety, sickness absenteeism, and burnout [23][24][25][26]. Furthermore, work engagement has been associated with healthy cardiac autonomic activity and a low likelihood of disability pensions [27,28]. Notably, high levels of work engagement have also been associated with increased short-term psychological distress and with decreased psychological stress over time [29].…”

“…Notably, high levels of work engagement have also been associated with increased short-term psychological distress and with decreased psychological stress over time [ 29 ]. At the societal level, work engagement predicts less unemployment in the general population [ 27 ].…”

Special Employment Centres, Time Factor and Sustainable Human Resources Management in Spanish Hotel Industry: Can Corporate Social Marketing Improve the Labour Situation of People with Disabilities?

“…In spite of the fact that there is a growing academic interest in issues related to disability, sustainability, and employment ( [52][53][54][55][56][57][58][59][60], among others), as Ref. [32] mentioned, there is still limited information about workers with disabilities in the scientific literature.…”