The Impact of Employee Well-Being on Organizational Effectiveness: Context of Lebanon

Abstract

Human resources managers have a critical role in creating a mentally fit workforce that offers their companies a competitive edge by assessing and improving the psychosocial work environment. The study aims to investigate the relationship between employee well-being along three dimensions, i.e., flexibility, work-life balance, and psychological well-being, and organizational effectiveness along three determinant factors, i.e., retention, quality of work, and productivity. This research uses a quantitative, positivist, and deductive approach. Data were collected from a convenient sample of 162 managers from the Lebanese Labor Market.  Data collected are processed using the statistical package IBM SPSS version 26.0 to explore the relationship between Employee well-being determinants and Organizational Effectiveness variables. Descriptive and inferential statistics were employed to test hypotheses and the resultant research framework. Results show a positive statistically significant relationship between flexibility and work-life balance and the three organizational effectiveness factors. Psychological well-being was negatively and statistically significantly related to organizational effectiveness factors. The findings explain why organizations should concentrate on employee well-being, share recommendations for conducting a stress assessment, and examine three main work aspects that impact well-being: Flexible work arrangements, work-life balance, and psychological well-being. The organization may increase the quality of life and contribute to organizational success by broadening its function to include these concerns.