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BIJ
30,1 Enhancing employee wellbeing – an
employability perspective
Nimmi P M
Adi Shankara Business School,
102 Adi Shankara Institute of Engineering and Technology, Kalady, India
Received 2 March 2021
K.A. Zakkariya
Revised 9 November 2021 School of Management Studies, Cochin University of Science and Technology,
27 December 2021
19 January 2022 Kochi, India, and
Accepted 20 January 2022
Anju Varghese Philip
SCMS Cochin School of Business, Kochi, India
Abstract
Purpose – Skill obsolescence among employees can be detrimental to organizational performance and can
lead to an ensuing decline in the wellbeing of employees. Today’s organizations bank on the employability
skills of their human capital to stay afloat in business. The current study examines the impact of developing an
employability culture in the organization, the perceived internal employability developed in the employees and
impact on employee wellbeing.
Design/methodology/approach – Research data were gathered from a sample of 421 software engineers in
private IT companies in India. Structural equation modeling using SPSS and AMOS was conducted to examine
the impact of employability culture and perceived internal employability on the three dimensions of employee
wellbeing.
Findings – The study found a positive relationship between employability culture and the components of
employee wellbeing. A partial mediation by perceived internal employability was reported between
employability culture and the three components of employee wellbeing.
Research limitations/implications – The study is a focused attempt on discerning the effect of
organizational elements in the form of employability culture on the employee perceptions and the state of
wellbeing, which are considered valuable resources in the career context. The study reiterates the prominence
of contextual factors in employees’ resource enhancement.
Originality/value – The study is a unique approach to determine the effect of perceived internal
employability and employability culture on employee wellbeing based on the social cognitive career theory and
the conservation of resources theory.
Keywords Employability culture, Perceived internal employability, Employee wellbeing
Paper type Research paper
Introduction
Businesses flourish in healthy organizations. Healthy and happy employees are an inevitable
part of successful organizations. Employees’ state of health and wellbeing contributes to the
successful performance of organizations (MacDonald, 2005). In this era of leading-edge
technology and cut-throat competition, the welfare of employees is affected mainly by the
new policies undertaken by organizations as well as the adaptive capacity of employees.
Retaining talented employees is a difficult task for any organization. The old deal of
employee-employer relationships, where employee loyalty is rewarded by job security, has
been replaced by new unwritten contracts where organizations provide opportunities for skill
development that could enhance the employability perceptions of employees (Dries et al.,
2014). Career scholars represent this as the New Psychological Contract (Donald et al., 2019).
Benchmarking: An International
Journal
This is important to both the individual and the organization by creating a “win–win”
Vol. 30 No. 1, 2023 scenario since career sustainability and organizational sustainability are often
pp. 102-120
© Emerald Publishing Limited
1463-5771
DOI 10.1108/BIJ-03-2021-0116 Funding: The study was funded by the UGC - JRF of Nimmi P M [No. F15-o(DEC. 2015) 201qNET].
complementary and supplementary in nature (Donald et al., 2020), and are based on the Enhancing
wellbeing of employees. An organization that takes care of its employees’ wellbeing has loyal employee
staff with an intention to stay with the organization (Eskildsen and Nussler, 2000). This
understanding entails leading companies to maintain a work environment conducive to
wellbeing
employee wellbeing and growth.
Among the many ways to attract talented youth to an organization, providing a culture of
learning and development is the most sought out by millennials (Eversole et al., 2012; Nolan,
2015). A fresh viewpoint to retaining the talent force focuses on employability (Wong et al., 103
2017). Employability is conceptualized from three different perspectives, i.e. the socio-
economic, the individual and the organizational (Vanhercke et al., 2014). Organizational
employability and employee (individual) employability are critical for succeeding in a highly
competitive business environment. Therefore, organizations try to stimulate their employees’
employability by creating a culture favorable to individual and organizational development.
Employability culture represents the cognitive facet of organizational culture, which is
instrumental for employees’ involvement in work activities and their personal growth
(Ostroff, 1993; Nauta et al., 2009; Wong et al., 2017). In addition, employability culture includes
those HR practices that help an organization to be flexible and to recruit employees who are
ready to stay with the organization (Nauta et al., 2009).
Previous researchers have inquired into the impact of HR practices on employee wellbeing
(Baptiste, 2008; Goncalves and Neves, 2012). However, none of the prior studies looked into
the impact of developing an employability culture on employee wellbeing (vis-a-vis work,
psychological and life wellbeing). There is indeed a dearth of research on the positive impacts
of developing employability culture. Furthermore, research has not investigated how
implementing an employability culture may affect employee wellbeing by examining the
intervening role of positive psychological resources like employability perceptions.
Employability perceptions are beliefs that one can maintain one’s employment or gain new
employment if necessary (Berntson, 2008). Perceived internal employability specifically
explains the employees’ level of confidence that she/he is valued within the organization, and
she/he will be retained even if there is a downsizing (Rothwell and Arnold, 2007; Akkermans
et al., 2020). The present study tries to address this gap and contribute to human resource
literature by depicting the importance of employability culture on developing positive
psychological resources, thereby enhancing employees’ wellbeing. Thus, the study tries to
find answers to the following questions:
(1) Does employability culture predict employee wellbeing?
(2) Does perceived internal employability serve as the intervening mechanism by which
employability culture enhances work wellbeing?
The article is presented in five parts. First, we introduce the three key variables and their
associations, along with the theoretical linkage. Second, we explain the research methodology
adopted for the study. Third, the analysis conducted is described in detail. Fourth, findings
and discussions on findings are presented. Finally, the article is brought to a conclusion with
remarks on the study’s implications and limitations.
Employability culture and employee wellbeing (life, work and psychological wellbeing)
Mathews and Izquierdo (2009) state that wellbeing is a state of being happy, prosperous, and
healthy, both physically and mentally, psychologically, socioeconomically, and culturally.
Employee wellbeing can be regarded as the quality of employees’ experience and functioning
at work and in life. Employee wellbeing is of high relevance to organizations because it
symbolizes organizational health and wellbeing. The definition of a healthy organization as
put forward by Wilson et al. (2004, p. 567) notes, “A healthy organization is one characterized
by intentional, systematic, and collaborative efforts to maximize employee wellbeing and
productivity by providing well-designed and meaningful jobs, a supportive social-
organizational environment, and accessible and equitable opportunities for career and
work-life enhancement”. Thus, it is imperative to look into the predictive power of
employability culture on the three dimensions of employee wellbeing.
BIJ Employee wellbeing is defined in this research as a combination of three basic aspects: life
30,1 wellbeing (LWB), work wellbeing (WWB) and psychological wellbeing (PWB). Employee
wellbeing is defined by Zheng et al. (2015, p. 628) as “not just employees’ thoughts and
sentiments about their work and life satisfaction, but also their psychological experience and
the amount of satisfaction demonstrated in both their professional and personal lives.” The
paper treats the three aspects of employee wellbeing as three different constructs as each
demonstrates wellbeing in different settings. An important distinction among the types of
106 wellbeing is the level of cognitive processing required, mainly in life evaluations and
meaning. Workplace situations differ extensively from general life situations, even though
the cultural aspect is visible in the work settings (Nimmi and Zakkariya, 2021). Psychological
wellbeing (PWB) and subjective wellbeing (SWB) or job satisfaction have often been used as
proxies to represent employees’ overall wellbeing in organizations (De Cuyper et al., 2008;
Hakanen et al., 2018). However, this does not represent the wellbeing concept in its totality.
The philosophical roots of wellbeing lie in eudaimonism. Eudemonic wellbeing mainly
focuses on judgments about the meaning and purpose of one’s life. Ryff (1989) proposed that
psychological wellbeing involves self-acceptance, personal growth, purpose in life,
environmental mastery, autonomy and positive relations. PWB is highly relevant to
people’s health and quality of life (Baer et al., 2012). Although the concept of psychological
wellbeing stems from Western culture, the general structure of this concept can be applied in
the Asian context as well (Zheng et al., 2015).
Wellbeing at work has been conceptualized variously by authors over a period of time.
Spreitzer’s (Porath et al., 2012) concept of thriving at work hinted that work wellbeing is a
feeling of vivacity and belief that one is learning, developing and making progress toward
self-actualization as well as finding meaning in work. Grant et al. (2007) describe work-related
wellbeing as the overall quality of an employee’s experience and functioning within the work
environment. Work wellbeing refers to employees’ overall experience toward both the job and
the organization (Kooij et al., 2013). For organizations to thrive in a competitive world, it is
inevitable to promote the wellbeing of their employees by enhancing their performance,
thereby ensuring the organization’s survival (Currie, 2001). An empirical investigation by
Baptiste (2008) found that organizational support and development enhance employee
wellbeing at work. Therefore, it is appropriate to propose,
H2. Employability culture is positively related to workplace wellbeing.
Life wellbeing refers to individuals’ overall assessment of their life quality based on their
standards (Diener, 1984). It includes two essential elements: life satisfaction, or the perception
of the quality of one’s life, and emotional experience, including positive and negative
emotions (Diener, 1984). Researchers have proposed that the subjective evaluation of life
wellbeing comprises three major components: high-level positive emotions, low-level
negative emotions and overall satisfaction with life. In addition, the life aspect covers two
categories: personal and family care (reflecting an employee’s emotions) and good family
relations (Zheng et al., 2015). Essential factors leading to organizational and personal
wellbeing from an organizational perspective involve open communication, teamwork,
co-operation, flexibility, support and a balance between work and personal life (Baptiste,
2008). In light of the above observations, we can propose,
H3. Employability culture is positively related to life wellbeing.
Developing employability culture as a part of HRM practices have a significant impact on
employee wellbeing (Baptiste, 2008). A study by Goncalves and Neves (2012) found a
significant positive correlation between HRM practices (training, communication,
performance appraisal, health promotion and opportunity to participate) and comfort,
enthusiasm, affective wellbeing at work and overall work satisfaction. Employee centric HR
practices result in positive work-related attitudes and behavior. The general assumption is Enhancing
that individual workers view employability enhancement practices as a personalized employee
commitment to them, as an investment in them, and a recognition of their contribution, which
enhances their work, life and psychological wellbeing. Accordingly proposing the
wellbeing
hypothesis,
H4. Employability culture is positively related to psychological wellbeing.
107
Perceived internal employability and employee wellbeing with its three dimensions
Perceived employability is considered a personal resource within the purview of COR theory,
where “individuals strive to obtain, retain, protect and foster the things they value” (Hobfoll,
2001, p. 341). Resources can hold value to the extent that they are perceived to help one
achieve his or her goals (Halbesleben et al., 2014). Also, resources can be categorized as
internal as well as external (Ten Brummelhuis and Bakker, 2012). The external resources are
important as it includes policies at the organizational level, work culture, etc. These resources
are not only culturally shared but also context-specific, and these resources are more or less
needed to call upon other resources (Ten Brummelhuis and Bakker, 2012; Halbesleben
et al., 2014).
Obtaining a resource can lead to the acquisition of other resources (gain spiral) (Kirves,
2014). The perception of employability as a valuable resource leads to the acquisition of
numerous resources. It eventually leads to real-life and work results, such as improved overall
health and mental wellbeing (Berntson, 2008) and increased job satisfaction (De Cuyper
et al., 2008).
Previous research has demonstrated that increased perceived employability might
contribute to happiness (Kirves, 2014; Berntson, 2008). As a result, perceived employability is
a vital mechanism for improving employee wellbeing by accumulating resources that can
boost the sense of security (Kirves, 2014). Employability perceptions could be internal or
external. Internal employability of employees specifically signifies employees’ confidence
that he/she is valued in the organization (Rothwell and Arnold, 2007). However, empirical
evidence lags in discerning the prominence of perceived internal employability in
determining employees’ wellbeing in the form of work wellbeing, life wellbeing and
psychological wellbeing. Heightened perceived internal employability within an organization
could enhance employees’ confidence in maintaining their current employment. This could
lead to an enhanced life, work and psychological wellbeing.
H5. Perceived internal employability positively impacts work wellbeing.
H6. Perceived internal employability positively impacts life wellbeing.
H7. Perceived internal employability positively impacts psychological wellbeing
Research methodology
Study context and sample
The researchers selected one of the developing nations with economic growth- India, as the
appropriate context for the study. India’s IT industry is a particularly good setting to
examine this phenomenon. The sector has been a significant contributor to the economic
growth in India and has emerged as the largest private-sector employer (Upadhyay et al.,
2016; Menon, 2017). Global competition, high reliance on IT-enabled services and the
Figure 1.
Proposed
conceptual model
availability of a large pool of human resources have increased the sheen of the IT industry in Enhancing
India. In addition, the IT industry has the peculiarity that the companies provide an employee
opportunity for employees to explore multiple occupations within an organization as part of
the job structure (Ortega, 2001).
wellbeing
The other side of this story is that the IT industry is plagued with high annual employee
turnover rates. Thereby, talent management and employee retention have become a major
challenge for the industry (Naim and Lenka, 2017). The resulting high talent mobility has
burdened HR with the serious challenge of curtailing the high turnover rate. The study by 109
Nimmi et al. (2020) reveals that millennial knowledge workers enjoy working in places where
they get ample growth, learning and development opportunities. New age workers look
forward to organizations that provide challenging tasks rather than sticking to routine tasks
(Indira and Shani, 2016). Millennial software engineers expect their organizations to use their
skill set to the fullest possible extent and engage them in continuous learning rather than
being obsolete after a short period (Nimmi et al., 2020).
The present study was conducted among software engineers of private IT companies
from February 2019 to July 2019. This period was characterized by reasonably stable job
market conditions in the IT sector. The data were collected mainly from three cities in South
India that have a maximum concentration of IT companies. A survey research design was
implemented, and both online and offline survey methods were used. A total of 421 useable
responses were collected.
Measures
For measuring different variables of the study uniformly, data were collected from the
respondents through a structured questionnaire using Likert’s five-point scale, which varies
from 1 5 strongly disagree to 5 5 strongly agree. In addition, previously developed scales
were used to ensure adequate reliability and validity. A brief explanation of all the measures
used is mentioned in the following paragraphs.
Employability Culture (EC): Employability culture was measured by a scale developed by
Nauta et al. (2009) with six items which include: “My organization encourages people to
change their job roles on a regular basis.”
Perceived Internal Employability (IE): The perceived value of occupation in the current
organization (internal employability) was assessed with four items from a scale developed by
Rothwell and Arnold (2007). A sample item was, “Even if there was downsizing in this
organization, I am confident that I would be retained.”
Wellbeing Constructs: The three constructs measuring different facets of wellbeing were
measured by scales developed by Zheng et al. (2015). Work wellbeing (WWB) was measured
with six items. Items include, “In general, I feel fairly satisfied with my present job.”
Psychological wellbeing (PWB) was assessed with a six-item scale with statements like ‘I
handle daily affairs well’. Life wellbeing (LWB was also assessed similarly with a six-item
scale including statements like “I feel satisfied with my life.”
The final instrument used captured various information from the sample respondents,
such as demographic and psychographic characteristics, as well as the concepts under
consideration. The various demographic and psychographic information captured during the
survey are gender, experience, job position, age, job type, etc. As previous empirical studies
have established that respondents’ age, experience and gender influence their employability
perceptions and wellbeing, the study considered these as control variables in the data
analysis stage. Therefore, age and experience were measured as a continuous variable
(in years), and gender was modeled as a categorical variable.
BIJ Data analysis and results
30,1 Statistical Package for the Social Sciences (SPSS) version 23.0 and AMOS statistical
software was used to analyze the data. Structural equation modeling (SEM) was used to
examine the model. SEM allows us to assess the extent to which perceived internal
employability acts as a mediator between employability culture and employee wellbeing.
The main objective of using SEM is to find a statistically relevant theoretical model with
both practical and substantive meaning. Validation of the measurement model is done by
110 confirmatory factor analysis.
The information gathered from the sample respondents via the questionnaire was
screened, and its psychometric qualities were examined in five stages during the data
analysis stage. The demographic and psychographic profiles of the sample respondents were
examined in the first phase. There were 167 females and 254 males among the respondents.
The average age was 29.64 years (SD 5 5.94), with a range of 21–48. Years of experience had a
mean value of 6.46 (SD 5 5.260). This was primarily done to better understand the
demographic and work-related aspects of the sample.
Using exploratory factor analysis (EFA) with varimax rotation, the items measuring the
study constructs, such as employability culture, perceived internal employability, WWB,
LWB and PWB, were assessed in the second phase. This was done to see if the customized
scales used in the study were unidimensional. The results of the factor extraction confirmed
the previous structure of the integrated scale items. In other words, the findings backed up a
five-factor framework that represented the included components.
In the next phase, common method bias was checked. Since the data used in the study
were generated from a single source, the potential effect of common method bias may exist
(Podsakoff et al., 2003). Thus, we used Harman’s single factor test as an exploratory
assessment to test if this possible harmful effect exists in the self-reported survey data.
As part of this assessment, we forced all those items covering all the five dimensions to load
onto one factor. The factor extraction results revealed an extracted total variance of 31.1%.
Since this indicates that one-factor extraction using all these items did not yield the majority
of the covariance between the study measures, we presumed that common method bias is not
present in the data collected in the study. Further, a factor extraction using the varimax
rotation technique and eigenvalue higher than one criterion also revealed a five-factor
structure with high factor loadings of the items to the factors that confirmed the earlier
interpretation. In addition, we used the Common Latent Factor (CLF) technique as a
confirmatory strategy for analyzing common-method bias. We included an underlying latent
factor in this approach, which is linked to all of the observable data. A comparison of this
model with the standardized regression weights of the typical correlated CFA model revealed
a small difference of 0.005 on all five dimensions. As a result, the study concluded that there is
no risk of common method bias in the data under examination (Podsakoff et al., 2003).
Further, in the fourth phase, the more detailed psychometric properties of the scales were
analyzed using confirmatory factor analysis (CFA). The overall correlated CFA model
covering the seven-factor dimensions supported that the data fit the model well, and it was
evident from the satisfactory model fit indices (3 2/df 5 2.14, RMR 5 0.04, NFI 5 0.90,
CFI 5 0.94, RMSEA 5 0.05 and SRMR 5 0.04). Further, the CFA factor loadings of the items
with respect to their respective constructs were reported above the suggested threshold of
0.50, and average variance extracted (AVE) coefficients ranged from 0.52 to 0.92, which
confirmed the reliability and convergent validity of the scales.
Later, the discriminant validity of the scale constructs was established by comparing the
square root of AVE scores for each construct with its inter construct correlations.
It supported that in all cases, this comparison confirms the discriminant validity of the scales
(Fornell and Larcker, 1981). Thus, it confirms the psychometric properties of the scales used
in the study (Table 1).
After confirming the psychometric properties of the scales, the average scores of all five Enhancing
scales were calculated (Table 2). This was mainly done to facilitate further analysis and employee
thereby to test the proposed study hypotheses. In addition, the association between the study
constructs was analyzed using correlations, and in all cases, it supported the expected
wellbeing
direction and magnitude (Table 3). Further, all the scores calculated with respect to the study
constructs were mean-centered prior to the formal test of hypotheses.
111
Structural model and hypotheses testing
Structural equation modeling was performed using IBM SPSS as well as AMOS to verify
our hypotheses for the causal relationships. Following the existing literature on model fit
indices (Hair et al., 2010), our hypothesized model exhibited a good fit to the observed data
(3 2/df 5 2.32, RMR 5 0.04, NFI 5 0.884, CFI 5 0.93, RMSEA 5 0.05 and SRMR 5 0.04).
Direct effects
The results of standardized regression path coefficients and their statistical significance are
summarized in Table 4. Of the proposed three hypotheses, all of them were statistically
supported amongst the sample.
EC exhibited a positive relationship with IE (β 5 0.29, p < 0.001) and WWB (β 5 0.40,
p < 0.001), LWB (β 5 0.26, p < 0.001) and PWB (β 5 0.36, p < 0.001). Also, IE is positively
associated with WWB (β 5 0.40, p < 0.001), LWB (β 5 0.34, p < 0.001), PWB (β 5 0.39,
p < 0.001). Findings support the direct hypothesis and all direct hypotheses are accepted. The
results are picturized in Figure 2.
Results indicate that employability culture results in enhanced perceived internal
employability among employees. In line with prior studies, perceived internal employability
is strongly associated with employee wellbeing, and the association is considerably stronger
for internal employability and employability culture predicting work wellbeing.
Mediation effects
We used an analytical approach prescribed by Preacher and Hayes (2004) to test the
mediation hypotheses. This mediation approach directly tests the indirect effect between the
predictor and the criterion variables through the mediator via a bootstrapping procedure
Figure 2.
Empirical model with
results
(Efron and Tibshirani, 1994). Further, to check the mediating role of perceived internal
employability in the relationship between employability culture and employee wellbeing
constructs (LWB, PWB, WWB), the indirect effect of employability culture on the constructs
of employee wellbeing (LWB, PWB, WWB) was examined. The results supported a
significant indirect effect of employability culture on LWB (b 5 0.09, p < 0.001, 95%
LLCI 5 0.01, ULCI 5 0.18), WWB (b 5 0.18, p < 0.001, 95% LLCI 5 0.08, ULCI 5 0.30); PWB Enhancing
(b 5 0.08, p < 0.001, 95% LLCI 5 0.01, ULCI 5 0.17). Among the indirect effects, the indirect employee
effect of perceived internal employability is most significant for work wellbeing, which
clearly signifies the impact of employability culture at the workplace.
wellbeing
Implications
Theoretical implications
The person-centric approach (Harrison, 1995) toward employee’s employability has proved to
be a valuable tool to enhance their psychological resources. Many recent studies are coming
up highlighting the importance of psychological resources in augmenting employee
sustainability at work (Nimmi and Zakkariya, 2021; Akkermans et al., 2013). This study
highlighted the prominence of internal employability perceptions as a positive psychological
resource that is developed in an employee as a result of developing a sound employability
culture, which leads to enhanced employee wellbeing (De Cuyper et al., 2011).
The resources that help an employee at work can be external as well as internal. From a
resource perspective, the employability culture acts as an external resource. These external
resources help to build internal resources in the form of hard skills and soft skills which have
a huge positive impact on the psychological resources of an employee. This resource
accumulation in the form of implicit and explicit skills and attitudes is beneficial for both
organizations and employees. From a sustainability point of view, these resources that
accumulate among employees have far-reaching consequences and can lead to the
development of sustainable careers. This study thus reiterates the significance of COR
theory in explaining career orientations and its outcomes.
The study also strengthens the importance of SCCT theory in explaining the role of social
support/workplace support for better career outcomes. As a predominant theory in
vocational psychology, this theory specifically looks into the enablers and disablers of career Enhancing
development (Lent and Brown, 2019). The latest models of SCCT theory deal with explaining employee
factors leading to career satisfaction and the wellbeing of employees at the workplace. Our
work advances theoretical understanding of SCCT by empirically validating workplace
wellbeing
enablers of employee wellbeing.
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