Stress or success? Unveiling the dual impact of workplace and personal pressures on employee's well-being and performance in the Banking industry

Abstract

This study inspects the factors influencing employee well-being (EWB) together with its outcomes within the banking sector, emphasizing workplace and personal stressors and their effects on job performance. Grounded in previous research, COR theory and HPWT frameworks, the research proposes and tests a holistic model. It investigates how workplace stressors—such as work-life conflict, negative gossip, and workplace ostracism—along with personal stressors, shape employee well-being, along with evaluates the direct connection between EWB and job performance. The proposed model supplies a detailed framework for examining and addressing the factors influencing EWB and their subsequent effects on job performance, providing valuable theoretical and practical insights for enhancing workplace environments. The research collected data from 322 employees working at major banking corporations in HCMC, Vietnam. The data analysis applied PLS-SEM for examining and validating the relationships within the proposed model. As a result, it is shown that workplace and personal stressors, excluding workplace ostracism, significantly influence employee well-being in the given context. Among workplace stressors, negative gossip was found to have the most substantial negative impact. Personal stressors can also significantly minimize EWB, underscoring the importance of addressing individual challenges alongside organizational factors. The findings confirm that employee well-being strongly enhances both task and contextual performance. This research, therefore, offers valuable insights to research literature by the lack of insight into the multidimensional aspects of employee well-being and integrating both workplace-related and individual factors into its framework. Furthermore, the findings have important managerial implications, urging organizations to prioritize strategies that foster a supportive work environment, mitigate negative stressors such as gossip, and address personal challenges faced by employees. These efforts are essential for enhancing employee well-being and, consequently, improving overall job performance. By offering practical insights, this research endeavors to be a crucial document for HRM and practitioners striving to foster healthier and more productive workplace environments