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

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.