Demographic Differences in Perceptions of Workplace Well-being, Economic Happiness, and Islamic Economic Values among Employees in Malaysian Private Higher Education Institutions (PHEIs)

Demographic Differences in Perceptions of Workplace Well-being, Economic Happiness, and Islamic Economic Values among Employees in Malaysian Private Higher Education Institutions (PHEIs)

Noorkartina Mohamad^*

Faculty of Business and Sciences Management University Islam Antarabangsa Tuanku Syed Sirajuddin (UniSIRAJ)

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90500052

Received: 25 April 2025; Accepted: 29 April 2025; Published: 29 May 2025

ABSTRACT

This study examines demographic differences in employee perceptions of workplace well-being, economic happiness, and Islamic economic values within Malaysian Private Higher Education Institutions (PHEIs). Utilizing a quantitative methodology, data were collected from 120 academic and administrative staff through structured questionnaires. Statistical analyses, including descriptive statistics, cross-tabulation with chi-square tests, One-Way ANOVA, and independent sample t-tests, were employed to explore demographic variations based on gender, age, educational level, and job status. Results indicated significant differences in perceptions of workplace well-being according to gender and job status, while variations in economic happiness and Islamic economic values were notably influenced by educational level and age groups. These findings highlight the importance of demographic considerations in implementing targeted institutional policies aimed at enhancing employee well-being and aligning organizational practices with Islamic economic principles. Practical implications and recommendations for policy development and management strategies in Malaysian PHEIs are discussed.

Keywords: Economic Happiness, Workplace, Islamic Economics Values, Demographic, Malaysia Higher Education

INTRODUCTION

In recent years, the well-being of employees has gained prominence as a critical factor influencing workplace productivity and institutional sustainability. This shift reflects a broader global recognition that employee satisfaction, mental health, and economic security are fundamental to long-term organizational success. In the context of higher education, particularly in faith-based educational environments such as Malaysian Private Higher Education Institutions (PHEIs), workplace well-being is further influenced by the integration of religious values, ethical standards, and broader development objectives. A number of scholars have investigated workplace well-being and related constructs within organizational settings. For instance, Diener and Seligman (2004) highlighted that subjective well-being significantly contributes to job performance and organizational citizenship behaviors.

Meanwhile, Taris and Schaufeli (2015) noted that workplace well-being is strongly influenced by leadership styles, organizational culture, and social support. From an Islamic perspective, Beekun and Badawi (2005) emphasized the role of ethical behavior, trust, and justice in enhancing workplace harmony, grounded in Islamic moral teachings. In Malaysian contexts, nor et al. (2021) examined how Islamic leadership and workplace spirituality positively influence employees’ emotional well-being and motivation in higher education institutions. Their study suggested that the integration of Islamic values in organizational frameworks can foster a more resilient and value-driven workforce. Furthermore, Alias et al. (2020) reported that employees in Islamic institutions often equate organizational fairness and transparency with spiritual fulfilment, reinforcing the holistic nature of Islamic workplace ethics. In Islamic contexts, the concept of well-being extends beyond physical and emotional dimensions to encompass spiritual and moral dimensions as well. The integration of values such as amanah (trust), adl (justice), ihsan (excellence), and maslahah (public good) is not only a reflection of Islamic teachings but also resonates with the objectives of Maqasid al-Shariah.

These values align naturally with the global agenda of the Sustainable Development Goals (SDGs), particularly those promoting decent work, reduced inequality, and sustainable communities. As such, Malaysian PHEIs are uniquely positioned to lead in implementing holistic well-being models grounded in both faith and universal development principles. Islamic economic principles and the SDGs offer valuable frameworks for aligning institutional practices with ethical and inclusive values. These frameworks emphasize justice, equity, social responsibility, and the promotion of holistic human development, which are integral to creating supportive work environments. However, despite growing interest in these themes, there remains limited empirical research that explicitly investigates how different demographic segments within faith-based institutions perceive these values and their influence on well-being and productivity.

This study explores how demographic factors influence perceptions of workplace well-being, economic happiness, and Islamic economic values within these settings. Understanding these dynamics is vital for formulating evidence-based policies that address employee diversity, foster inclusion, and strengthen alignment with institutional missions rooted in Islamic and sustainable development philosophies.

LITERATURE REVIEW

The intersection of workplace well-being, economic happiness, and Islamic economic values has emerged as a focal point of organizational and ethical inquiry, particularly in institutions where moral, cultural, and religious values play a dominant role. Although each of these domains has received scholarly attention independently, few studies have sought to integrate them within a coherent analytical framework, especially in the context of Malaysian Private Higher Education Institutions (PHEIs). This review presents a critical synthesis of existing literature, evaluates key theoretical contributions, and identifies gaps that justify the current study.

Workplace Well-being and Productivity in Higher Education

Workplace well-being, broadly defined as employees’ holistic satisfaction with their professional environment, has been linked to a variety of performance outcomes, including motivation, creativity, retention, and organizational loyalty. Diener et al. (2002) emphasized that psychological well-being at work enhances not only personal happiness but also institutional functionality, suggesting a reciprocal relationship between individual satisfaction and systemic success. In higher education, this link becomes especially pertinent, as staff engagement directly affects student outcomes, research productivity, and the institutional reputation. In the Malaysian context, Ahmad & Omar (2021) highlighted how factors such as procedural justice, workload distribution, leadership support, and participative decision-making correlate positively with job satisfaction in academic environments. While their findings confirm the importance of structural and managerial factors, they stop short of considering how cultural or religious values may moderate these relationships. Moreover, Ahmad and Ghazali (2020) observed that in institutions with an Islamic ethos, workplace well-being is often experienced not just as physical comfort or financial security, but as an alignment with shared moral values. This suggests a need to reconceptualize well-being in faith-based institutions as a multidimensional construct that includes spiritual and ethical satisfaction.

Economic Happiness: Beyond Income Metrics

Conventional economic models have often equated happiness with rising income or material consumption. However, this assumption has been increasingly challenged. Layard (2010) argues that beyond a certain threshold; income fails to yield proportional increases in life satisfaction. Instead, non-material factors such as social relationships, sense of purpose, autonomy, and psychological safety play a more decisive role. These insights are echoed by Sosnovika (2024), who found that employees in faith-based institutions prioritize emotional balance, work-life harmony, and meaningful engagement over purely financial compensation. The idea of economic happiness, therefore, calls for a paradigm shift from purely objective financial indicators to subjective evaluations of life and work quality. This conceptual shift is crucial in the context of Islamic economics, which recognizes wealth as a tool (wasilah) for achieving human dignity, rather than an end in itself. The emphasis on barakah (blessing) and halal livelihood in Islam further reinforces the view that economic satisfaction encompasses ethical and spiritual dimensions.

Islamic Economic Values in Organizational Life

Islamic economic principles are grounded in a normative framework that emphasizes equity (adl), accountability (hisbah), trust (amanah), and the pursuit of public interest (maslahah). Chapra (2008) articulates that the goal of Islamic economics is not merely to enhance material prosperity, but to facilitate the balanced development of the human personality—spiritually, socially, and economically. When these principles are translated into institutional practices, they shape how employees experience justice, leadership, and performance expectations. In higher education settings, where values and mission often shape institutional identity, Islamic economics can provide an ethical compass for governance, curriculum development, and interpersonal relationships. Iqbal and Mirakhor (2011) argue that Shariah-compliant organizations foster long-term sustainability through ethical restraint and moral responsibility. Such institutions are not only expected to be financially sound, but also socially responsible and spiritually conscious. Yousef (2001), in a seminal study, found that Islamic work ethics positively correlate with job satisfaction and organizational commitment. His findings highlight that when employees perceive their workplace as morally aligned with Islamic teachings, they report higher levels of psychological well-being and lower occupational stress. However, his research did not examine how these perceptions vary across demographic factors—a gap this current study seeks to address.

The Role of Demographic Differences

While workplace well-being and Islamic economic values are often studied in aggregate, the role of demographic factors in shaping these perceptions remains underexplored. Some research, such as Hassan, Mahmud, and Mat (2022), suggests that educational level, gender, and job role can influence how employees internalize Islamic economic principles. For example, individuals with advanced degrees may possess greater exposure to Islamic intellectual traditions and economic concepts, thus showing a more nuanced understanding of maqasid al-shariah (objectives of Islamic law) in professional settings. Similarly, Khan and Bakar (2019) found that employees with direct involvement in educational delivery (e.g., academic staff) are more likely to articulate and apply ethical considerations in their work. In contrast, administrative and support staff may encounter Islamic values more indirectly, such as through policies or institutional culture, rather than direct curriculum exposure.

Gender dynamics also deserve critical attention. Although Islam upholds the principle of equity, cultural interpretations and workplace dynamics may lead to divergent experiences between male and female staff. For instance, access to leadership roles, involvement in decision-making, or even exposure to institutional discourse may differ subtly, influencing how Islamic economic values are perceived and enacted. The significant chi-square findings in the current study reflect these latent patterns.

Critical Gaps and Justification for the Study

Despite the rich body of literature linking workplace outcomes to economic and ethical frameworks, there remains a clear gap in empirical research that integrates subjective well-being, economic happiness, and Islamic economic values within a single analytical model. Most existing studies focus on one or two of these elements in isolation, without exploring how they interact with one another—particularly in the context of religiously oriented institutions. Furthermore, while the influence of demographic characteristics on workplace perceptions has been acknowledged, it is often treated as a secondary or control factor, rather than a focal point of analysis. In the specific context of Malaysian Private Higher Education Institutions (PHEIs), this gap becomes even more pronounced. As institutions that often adopt Islamic values in their mission and operations, PHEIs present a unique environment in which personal values, organizational ethics, and workplace practices intersect. Yet, there is a lack of comprehensive research that examines how demographic groups—such as male versus female staff, academic versus administrative personnel, or individuals with different educational backgrounds—perceive and respond to these overlapping value systems. Moreover, although frameworks such as the Sustainable Development Goals (SDGs) and Islamic economics both advocate for fairness, dignity, and holistic development, there is minimal research connecting these global and religious paradigms in the analysis of workplace well-being.

This disconnect limits the potential for developing value-aligned policies that are both globally relevant and locally grounded in Islamic ethics. Therefore, this study addresses these gaps by providing empirical evidence on how demographic variables influence employee perceptions of well-being, economic contentment, and Islamic economic values in the workplace. By doing so, it not only contributes to theory building in Islamic economics and organizational behavior but also offers actionable insights for designing inclusive and ethically grounded policies in faith-based educational institutions.

METHODOLOGY

A quantitative research design was adopted, involving the administration of structured questionnaires to 120 academic and administrative staff members at Malaysian PHEIs. The sampling method used was purposive, targeting individuals with sufficient experience and familiarity with institutional operations to provide informed responses. The questionnaire was designed based on previously validated scales and adapted to reflect Islamic economic values and SDG elements relevant to the context. The survey instrument measured three core constructs: workplace well-being, economic happiness, and the integration of Islamic economic principles and SDGs.

Each construct was represented by a series of Likert-scale items assessing both perceptions and experiences related to work conditions, financial satisfaction, and ethical alignment within the institution. Reliability of the scales was tested using Cronbach’s Alpha to ensure internal consistency. Data analysis was conducted using SPSS. Descriptive statistics were used to summarize demographic characteristics and overall response trends. Inferential tests including Independent Sample T-tests, One-Way ANOVA, and Chi-Square tests were employed to examine potential differences in perception based on demographic variables such as gender, age, education level, and job status. These statistical methods allowed for an in-depth examination of how demographic diversity shapes workplace experiences and values in PHEIs.

Data Analysis

An independent-samples t-test was conducted to examine whether there were significant differences in perceptions of workplace well-being, economic happiness, and Islamic economic principles & Sustainable Development Goals (SDGs) integration based on gender and job status among staff in Malaysian Private Higher Education Institutions (PHEIs). The analysis compared the mean scores of male and female respondents, as well as academic and support staff, across the three key constructs. The results, as summarized in Table 1 and Table 2, reveal whether gender and job status significantly influenced participants’ perceptions regarding workplace well-being, their sense of economic happiness, and the application of Islamic economic principles and SDGs within the institutional environment.

Table 1 Independent Sampel T-Test by Gender  

Table 2 Independent Sampel T-Test by Job Status 

The results showed no statistically significant difference in workplace well-being between male respondents (M = 3.97, SD = 0.63) and female respondents (M = 3.81, SD = 0.52), t (118) = 1.58, p = 0.116. Similarly, economic happiness did not significantly differ between males (M = 3.53, SD = 0.84) and females (M = 3.62, SD = 0.63), t (118) = -0.65, p = 0.515. In terms of perceptions of Islamic economic principles and SDGs, no significant difference was found between genders either, with males scoring (M = 3.77, SD = 0.80) and females (M = 3.62, SD = 0.64), t (118) = 1.15, p = 0.254.

However, a significant difference was observed in perceptions of Islamic economic principles and SDGs based on job status. Academic staff reported higher agreement (M = 3.86, SD = 0.56) compared to administrative staff (M = 3.39, SD = 0.78), t (118) = 2.01, p = 0.047. No significant differences were found in workplace well-being, t (118) = 1.34, p = 0.183, or economic happiness, t (118) = -0.62, p = 0.538, across job roles. These findings suggest that while gender does not significantly influence the main workplace variables, job status may affect how Islamic economic principles and values are perceived, particularly among academic staff who may be more frequently exposed to institutional policy frameworks and Islamic ethics in practice.

Table 3 One-Way ANOVA Test by Age and Educational Level

The results from Table 3 indicate that there were no statistically significant differences in any of the three core perceptions—workplace well-being, economic happiness, or Islamic economic values—based on respondents’ age or educational level (all p > 0.05).

Specifically, the analysis for Islamic Economic Principles and SDGs showed F (4, 115) = 1.107, p = 0.358, indicating no significant variation across educational levels. This means that whether respondents held a bachelor’s, master’s, or doctoral degree, their perceptions on how Islamic economic principles are applied in the workplace were generally consistent. This consistency may suggest that Islamic values are embedded uniformly across the institution through training, policy, or a shared culture. It also highlights that exposure to Islamic economic values does not differ greatly based on educational qualification — potentially reflecting a well-integrated approach across departments and staff roles.

Further assess the association between demographic characteristics and categorized perceptions, cross-tabulation and Chi-Square tests were conducted. For the purpose of this analysis, the original continuous variables (workplace well-being, economic happiness, and Islamic economic principles & SDGs) were transformed into categorical variables. This was done using tertile segmentation, dividing each variable into three equal groups representing low, medium, and high levels of perception. These categorized variables allowed for the use of Chi-Square tests, which are suitable for examining relationships between categorical variables. This approach is particularly useful in identifying patterns of perception that may not be apparent when examining only continuous data. The results of the analysis are shown in Table 4.

Table 4 Chi-Square Test Results by Gender and Job Status

Note: *Significant at p< 0.05

The analysis reveals a statistically significant association between gender and perceptions of Islamic economic values, χ² (2) = 7.775, p = .0205. This indicates that male and female respondents differ in their categorical perception of how Islamic economic principles are reflected in their workplace. This finding could reflect differences in how male and female employees relate to institutional efforts that embed Islamic economic ethics, such as justice, accountability, or spiritual well-being. It may also signal varying levels of exposure, engagement, or interpretation of these values due to different roles or expectations placed on male and female staff within the institutional context. In addition, a significant result was found for job status and Islamic economic values, χ² (4) = 10.308, p = 0.0355. This means that academic and administrative staff perceived the integration of Islamic economic principles differently, based on their roles.

For instance, academic staff may be more exposed to institutional discourses around Islamic ethics due to their teaching and research responsibilities, while administrative staff may experience these values more in operational or procedural contexts. To simplify, Chi-Square analysis helps us see whether different groups (e.g., male vs female, academic vs admin) tend to give “Low”, “Medium”, or “High” scores in different ways. If the pattern of responses between groups is very different, and not likely to happen by chance, the result is called significant. In this case, gender and job status both had significant differences in how they viewed Islamic economic values. Other comparisons, such as for workplace well-being or economic happiness, did not show significant differences, meaning those perceptions were relatively similar regardless of gender or job category.

Figure 1 Categorical Perceptions of Islamic Economic Values by Job Position

Figure 1 presents a clustered bar chart illustrating the distribution of respondents’ perceptions of Islamic Economic Values by job position, categorized into Low, Medium, and High levels. The analysis reveals visible differences between job categories. Academic staff exhibited a higher tendency to report “High” perceptions of Islamic Economic Values compared to administrative and support staff. In contrast, a larger proportion of support staff appeared in the “Low” category, indicating a relatively lower alignment or exposure to institutional values rooted in Islamic economic principles. This disparity may reflect the nature of job roles; academic personnel are often directly involved in teaching, curriculum development, and Islamic knowledge dissemination, which may enhance their awareness and appreciation of Islamic economic ethics. Administrative and support staff, meanwhile, may engage more with procedural and operational tasks, which could limit their interaction with formalized Islamic economic discourse in the institution. These findings align with the Chi-Square test results, which confirmed a statistically significant relationship between job position and perceptions of Islamic economic values (χ²(4) = 10.308, p = 0.0355). It highlights the need for institutions to tailor engagement and awareness strategies according to job function to ensure a holistic internalization of values across all staff levels.

DISCUSSION

This study set out to examine how demographic differences influence employee perceptions of workplace well-being, economic happiness, and Islamic economic values in Malaysian Private Higher Education Institutions (PHEIs). The integration of spiritual-ethical principles, subjective well-being, and economic contentment within a single analytical framework is a novel approach, particularly within the context of faith-based institutions. The findings yield several important insights and contribute meaningfully to the existing literature.

First, the statistically significant results from the independent sample t-test and chi-square analyses demonstrated that gender and job position have a notable influence on how Islamic economic values are perceived in the workplace. Academic staff scored higher in alignment with these values, suggesting they may be more exposed to Islamic principles through their involvement in curriculum development, research, and institutional policy formulation. This finding aligns with Khan and Bakar (2019), who assert that roles involving direct intellectual engagement with Islamic teachings may reinforce value internalization. In contrast, administrative and support staff—who are more often focused on procedural and operational tasks—may experience institutional ethics in more indirect or transactional ways, reducing their resonance with the broader Islamic economic mission of the institution. Similarly, the significant chi-square result for gender reveals a differentiated perception of Islamic economic values between male and female staff. This is an important finding, particularly within the context of Islamic institutions, where ethical parity is promoted, but socio-cultural dynamics may still mediate access to decision-making, leadership engagement, and exposure to Islamic discourse. While Islam emphasizes equity (adl) and shared spiritual responsibility, in practice, women and men may experience institutional norms differently, thereby shaping their perceptions of workplace values. This supports Hassan, Mahmud, and Mat (2022), who observed that gendered experience within Islamic institutions affects not only job satisfaction but also perceptions of moral alignment.

On the other hand, no statistically significant differences were observed in workplace well-being and economic happiness across age and educational level, as shown through one-way ANOVA results. This uniformity could suggest that the institutions under study have implemented reasonably effective and inclusive well-being strategies across staff levels, resulting in relatively consistent experiences. Alternatively, it might indicate that factors influencing subjective well-being—such as intrinsic motivation, personal values, or spiritual commitment—transcend demographic categories and are more deeply rooted in individual personality or life circumstances. These findings resonate with the works of Layard (2010) and Sosnovika (2024), who contend that well-being in values-based environments is more strongly influenced by emotional and spiritual fulfilment than by external demographic or economic characteristics. Another interpretation is that staff in Malaysian PHEIs, regardless of background, operate within a shared organizational culture shaped by Islamic ethics, leading to a form of perceptional convergence. According to Chapra (2008), when values such as amanah (trust), ihsan (excellence), and maslahah (public interest) are institutionalized, they become part of the workplace fabric, promoting shared understandings of well-being and economic responsibility. The relatively consistent scores across demographic groups could indicate that such a values-based culture is functioning as intended—creating an environment of inclusivity, respect, and shared moral purpose.

However, the significance of demographic differences in interpreting Islamic economic values suggests that a uniform approach to policy and training may be insufficient. Institutional leadership must consider that while values may be embedded at the structural level, the way they are communicated, interpreted, and lived by employees can vary depending on access, role, and cultural experience. For instance, male academic staff may receive greater exposure to institutional narratives around Islamic economics due to their frequent participation in curriculum design or forums, whereas administrative female staff may interact with those principles only in formal policy documentation. Thus, equitable values dissemination requires a deliberate, targeted strategy that accounts for these variances. Furthermore, the concept of economic happiness—defined not merely as financial satisfaction but also as moral comfort and alignment with one’s values—emerged as a central theme in this study. Although not statistically significant across demographic lines, its strong correlations with workplace well-being and Islamic values underscore its conceptual relevance. The findings support the idea that in faith-based institutions, economic well-being cannot be separated from ethical and spiritual considerations. As Iqbal and Mirakhor (2011) noted, income devoid of spiritual context does not yield true satisfaction in Islamic economics.

Hence, future institutional strategies must integrate both material and non-material rewards to enhance employee contentment. In addition to theoretical contributions, the study presents practical implications for institutional leaders and HR practitioners. Understanding that demographic variables shape perceptions of values is critical in designing inclusive policies. For example, onboarding and training programs on Islamic economic ethics should be differentiated for academic and non-academic staff, ensuring that everyone—regardless of role—understands how these values apply in their specific context. Similarly, communication strategies should be sensitive to gendered experiences and access, ensuring that messages of equity and justice are conveyed meaningfully across all staff categories. Lastly, these findings invite further research into how values-based institutions navigate the tensions between ethical universality and demographic particularity. Longitudinal studies could explore how staff perceptions evolve over time with increased exposure to Islamic values, or how these perceptions differ across types of institutions (e.g., public vs private, faith-based vs secular).

CONCLUSION

This study explored how demographic factors influence employee perceptions of workplace well-being,economic happiness, and Islamic economic values in Malaysian Private Higher Education Institutions (PHEIs). By integrating variables often treated separately—namely spiritual-ethical values, subjective satisfaction, and demographic identity—this research provides a multidimensional understanding of organizational dynamics in faith-based institutions. The findings indicate that gender and job position are significant predictors of how Islamic economic values are perceived, while workplace well-being and economic happiness appear more uniformly distributed across demographic groups. This highlights the dual reality in PHEIs: while institutional cultures may promote common values and experiences, employees’ interpretation and internalization of those values still vary based on their demographic background and professional role. This conclusion reinforces the idea that values-based management must be both universal and personalized. Islamic economic principles such as adl, amanah, and maslahah provide a strong ethical foundation for workplace policies, but their impact is fully realized only when they are meaningfully connected to employees lived experiences. As such, institutions must move beyond symbolic integration of Islamic values and invest in differentiated engagement strategies that address the specific realities of diverse staff segments. Ultimately, this study not only contributes to the growing body of knowledge in Islamic organizational behavior and workplace economics but also calls for a more critical and inclusive approach to human resource development within Islamic educational settings.

Practical Implications

The findings of this study offer several practical implications that can guide policy development and institutional strategies in faith-based higher education settings. First, there is a need for institutions to embed Islamic economic values not only at the ideological level but also in day-to-day human resource practices. This includes ensuring that policies on recruitment, performance appraisal, and reward distribution are clearly aligned with core Islamic principles such as adl (justice), amanah (trust), and maslahah (public benefit). By translating these abstract values into tangible organizational processes, institutions can foster a work culture that reflects both ethical consistency and operational effectiveness. Second, staff training and development initiatives should be differentiated based on job roles and responsibilities. Academic staff, who are often involved in shaping curriculum and research, may benefit from more advanced modules on how Islamic ethics intersect with knowledge dissemination and intellectual responsibility. On the other hand, administrative and support staff require contextually relevant training that connects Islamic values to routine operational duties and institutional protocols. This differentiation ensures that all employees—regardless of role—can meaningfully engage with the institution’s ethical framework.

Furthermore, the results highlight the importance of gender-sensitive engagement strategies. Institutions must recognize that male and female staff may have different experiences and access levels within the organization, which in turn can affect how they perceive and practice Islamic workplace values. To address this, inclusive leadership development, mentorship programs, and communication platforms that consider gender dynamics should be institutionalized. This will not only promote equity but also strengthen moral unity across diverse staff segments In addition, inclusive decision-making structures should be prioritized. When employees from varied educational backgrounds and job positions are actively involved in shaping institutional policies, they are more likely to feel a sense of ownership and alignment with organizational values. This participatory approach also enhances morale, reduces resistance to change, and reinforces the practical application of Islamic economic ethics within the institution. Finally, ongoing monitoring and evaluation systems should be established to assess how different demographic groups perceive workplace well-being, economic happiness, and ethical alignment. Regular feedback loops and demographic-disaggregated data analysis will allow institutions to refine their strategies, ensuring that ethical integration is not static but evolves in response to the needs and experiences of all employees.

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