Impact of sustainable workplace environment on employee well-being: Mediating role of work engagement and moderating role of psychological safety

Abstract

The study explores how a sustainable workplace environment can influence the well-being of the employees, while assessing the mediating effect of work engagement and the moderating effect of psychological safety. The data from the cross-sectional, self-report questionnaire was collected from 244 full-time employees in Textile and IT sectors and analysed using IBM SPSS and PROCESS macro for mediation and moderation testing. Analysis indicated that the sustainable workplace environment was significantly and positively associated with employee well-being (β = .726, p < .001) and work engagement (β = .658, p < .001), whereas work engagement was significantly and positively associated with well-being (β = .397, p < .001). The sustainable environment of the workplace was found to significantly and partially mediate the relationship between well-being and work engagement (indirect effect = .202, 95% CI [.130, .279]); the direct effect was still significant. This hypothesis was not supported as psychological safety did not significantly moderate the sustainable workplace environment and work engagement (B = .017, p = .257). These results provide partial support for a partial mediation model, in which a supportive workplace environment has a direct positive impact on employee well-being, as well as an indirect impact via work engagement; they also suggest that psychological safety is a distinct resource that is not simply a reflection of the relationship between workplace environment and work engagement.