The impact of human resource practices on employee job performance with mediating role of psychological well-being

Despite the fact that human resource practices have been discussed widely, the role of employee skills, opportunity and motivation enhancing is yet to be examined in the context of employee psychological well-being. Therefore, the present study examined the impact of human resource practices, employee compensation and training on employee psychological well-being and employee job performance. Findings of the structural equation modelling (SEM) revealed that altogether human resource practices, employee compensation and training explained R2 75.9% variance in employee psychological well-being. On the flip side employee job performance is predicted by employee psychological well-being and explained R2 50.2% variance in employee job performance. Aside of direct relationships, the mediating role of employee psychological well-being was also confirmed between human resource practices and employee job performance. For managerial implications importance performance matrix analysis indicated that growth opportunity, human resource compensation and human resource training are the most important constructs to be taken into managerial consideration. Therefore, policymakers should focus on employee psychological well-being, human resource training and compensation in order to boost employee job performance.