INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3661 www.rsisinternational.org
Flourishing Minds, Flourishing Workplasces: The Impact of
Psychological Well-Being on Employee Performance
Afiq Azri Mohd Ghani., Sofiah Adilah Ahmad Foad., Yuhanis Khalida A Rashid., Angela Chan Nguk
Fong., Puteri Farahdiana Megat Suhaimi., Az-Athirah Zubairi., Thilaageshwary Thangadurai., Nurul
Nabila Ibrahim., Rashidin Idris
Department of Social Sciences, Faculty of Education and Social Science, Universiti Selangor
DOI: https://dx.doi.org/10.47772/IJRISS.2025.910000299
Received: 12 October 2025; Accepted: 19 October 2025; Published: 11 November 2025
ABSTRACT
The relationship between psychological well-being and employee productivity has received increasing attention
in recent years as organizations recognize the importance of mental health in achieving sustainable performance.
This study examines the impact of psychological well-being (PWB) on work performance (WP) among private
sector employees in Klang, Selangor. Grounded in the PERMA framework and supported by positive
organizational psychology theories, the research adopts a quantitative design using purposive sampling. A total
of private sector employees aged 21 and above participated through standardized instruments, including the 18-
item Ryff’s Psychological Well-Being Scale (1995) and a validated Work Performance Questionnaire. Data were
analyzed using ANOVA and regression analysis. The findings indicate no statistically significant differences in
PWB and WP across demographic groups (p > 0.05). However, regression analysis reveals a significant
but negative relationship between PWB and WP (β = –0.232, p = 0.008), suggesting that higher PWB does not
necessarily correspond to higher work performance in this sample. The discussion highlights the complex nature
of this relationship, influenced by contextual factors such as stress levels, leadership support, and organizational
culture. The study underscores the need for organizations to implement holistic mental health initiatives that
balance emotional well-being with performance expectations. In conclusion, fostering psychological well-being
remains essential for enhancing motivation, engagement, and long-term productivity among employees in
Malaysia’s private sector.
Keywords: Psychological well-being, work performance, private sector, ANOVA, regression
INTRODUCTION
The relationship between psychological well-being and productivity in the workplace has gained increased
attention recently as businesses have come to realize the significance of mental health for employee productivity
and overall company success. An employee's ability to manage stress, work cooperatively with others, and
provide exceptional performance is based upon their emotional, social, and psychological elements of
psychological well-being (Danna & Griffin, 2021). This growing attention can be attributed, in part, to a better
knowledge of the detrimental effects that workplace stress, burnout, and mental health conditions have on
organisational performance.
Despite the growing awareness of mental health's importance, many organisations still fail to adequately address
the factors that influence psychological wellbeing, such as work stress, burnout, and poor work-life balance.
This gap presents a significant challenge, as research consistently shows that poor psychological wellbeing leads
to lower productivity, reduced job satisfaction, higher absenteeism, and increased turnover (Hakanen &
Schaufeli, 2020).
Research underscores that employees with higher psychological well-being tend to exhibit better performance
due to enhanced job satisfaction, increased resilience to stress, and improved problem-solving skills (Zhang &
Zhang, 2020). Moreover, organizations that invest in the mental health and well-being of their employees
experience lower absenteeism and turnover rates (Leka & Nicholson, 2021). Studies also indicate that well-being
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3662 www.rsisinternational.org
is a strong predictor of organizational citizenship behavior (OCB), which contributes to a cooperative and
productive work environment (Johnson & Smith, 2022).
In summary, psychological well-being plays a critical role in enhancing work performance. Employees who
experience positive mental health are more engaged, motivated, and capable of managing stress, leading to
increased efficiency and creativity in their work. Organisations that prioritise psychological well-being foster a
supportive environment that not only boosts individual performance but also enhances overall team dynamics
and workplace morale.
LITERATURE REVIEW
According to Dhanabhakyam and Sarath (2023), in general contentment, life satisfaction, and mental and
emotional well-being are all components of psychological well- being, which is a complex and multidimensional
concept. Key elements include low levels of negative emotions, positive connections, autonomy, happy
emotions, a purpose in life, life satisfaction, and personal improvements. Researchers disagree on what defines
psychological well-being, but according to the World Health Organisation (WHO), it is a mental state in which
a person is able to reach their full potential, perform well, and manage everyday challenges. Psychological well-
being has been connected to greater physical and mental health as well as a longer life expectancy. It is thought
to be essential for overall health and happiness.
Work performance is a measure of how well employees fulfil their job duties, accomplish their goals, and
accomplish the results that they want. It shows that an employee's work performance is determined by how
successfully they execute their duties in terms of quantity, quality, and amount of time spent on them (Mihaleche,
2022). A mix of productivity, quality of job, career involvement, and job satisfaction measures are examples of
objective and subjective characteristics that may be used to quantify work performance (Darvishmotevali and Ali
2020).
A key factor in improving employee performance is their well-being (Boulet & Parent- Lamarche, 2022). In
particular, emphasises that between Taiwanese and mainland Chinese employees, psychological well-being has
a positive and significant relationship with job performance as a vital indication of employee well-being. Peccei
and Van De Voorde (2019) go on to clarify that affective commitment, career contentment, and overall
organisational success are all positively impacted by employee well-being.
The main component of PERMA is introduced by Seligman (2008) and it consist of Positive Emotion,
Engagement, Relationship, Meaning, and Accomplishment. However, Slavin et. Al. (2012) suggested that
PERMA can potentially viewed for developing a healthy organisational culture setting. Donaldson et al. (2022)
carried out a thorough systematic literature review, meta-analysis, and a variety of qualitative assessments based
on Seligman's (2008) fourth criterion. The four additional building blocks are Physical Health, Mindset, Work
Environment, and Economic Security.
METHODOLOGY
When writing a research design essay for research that employs a quantitative technique, it is important to take
into account the basic concepts and methods related to quantitative research. Using numerals and anything
measurable in a systematic approach to investigate events and how they relate is known as the quantitative
research methoka
Since the goal of quantitative research approaches is objective and equality, the process of gathering and
analysing data should be organised to reduce the consequences of the researcher's own beliefs and assumptions
(Hasan, 2024). According to Hasan (2024) also added, using sampling techniques, online questionnaires, online
polls, and surveys are sent to respondents as part of quantitative research to gather data. The target respondents
of this research are private sector employees from Klang. Other than that, Klang is one of the developing districts
in Selangor and consists of 1,088,942 residents (DOSM, 2024). 67.8% (738,303) of the residents are employed
and currently active in the workplace.
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
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Purposive sampling is a non-probability sampling technique commonly used in research to select a subset of the
population based on specific criteria relevant to the research objectives. The specific groups chosen from the
population to be included in the research are referred to as the sample elements. Employees in the private sector
who are at least 21 years old and who are part of the Klang population of interest are the sampling elements for
this study. This method is particularly useful when researchers aim to gain in-depth insights from individuals
who can provide rich and relevant information related to the research topic Campbell et al. (2020).
The research procedure for the impact of psychological well-being toward work performance among private
sector employee in Klang is outlined in the Gantt Chart. The process began with the literature review, continued
with proposal writing and ethical approval. Furthermore, the process followed by participant recruitment and
data collection. The process continued with data analysis and report writing, followed by final presentation. The
research concludes with the final submission. This prepared timeline is to make sure that the process of the
research will be systematic that covers all stages from the beginning to final report. To measure the impact of
psychological well-being toward work performance among private sector employee in Klang, the researcher will
be using the standardised questionnaire. The questionnaire will be included with validated scales such as 18-item
Ryff’s Psychological Wellbeing Scale and Work Performance Survey Questionnaire. Demographic data of the
respondent will be included as well such as gender, age, type of work, and year of experience.
RESULTS
Table 1 Analysis of ANOVA
An analysis of variance (ANOVA) was conducted to examine group differences in psychological well-being
(PWB) and work performance (WP) among respondents. The findings, as shown in Table 1, indicate that there
was no statistically significant difference in PWB across the groups, F(1,127) = 2.03, p = .153. Similarly, no
significant difference was found in WP between the groups, F(1,127) = 2.25, p = .136. Since both p-values
exceed the .05 significance threshold, the results suggest that group membership does not have a meaningful
impact on employees’ psychological well-being or their work performance. In other words, variations in these
variables cannot be attributed to differences between the groups. These findings imply that other factors—such
as individual psychological resources, leadership environment, or workplace culture—may play a more
substantial role in influencing both psychological well-being and performance outcomes.
Table 2 Analysis of Regression
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
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A simple linear regression was conducted to examine the effect of psychological well-being (PWB) on work
performance (WP). The model was statistically significant, F(1,127) = 7.21, p = .008, indicating that PWB
significantly predicted WP. The regression coefficient for PWB was negative and significant (B = –0.303, t = –
2.69, p = .008), suggesting that higher psychological well-being was associated with a slight decrease in work
performance. The standardized coefficient (β = –0.232) indicates a moderate negative relationship. The intercept
(B = 27.736, p < .001) represents the expected level of work performance when PWB is zero. These findings
suggest that psychological well-being exerts a significant but negative influence on work performance within
this sample of private-sector employees.
DISCUSSION
The non-significant ANOVA results indicate that there were no meaningful differences in psychological well-
being or work performance across the different groups examined. This implies that employees, regardless of
demographic or employment differences, generally experience similar levels of well-being and performance
outcomes. Recent studies have shown that when organisational environments are relatively homogeneous such
as workplaces with similar job structures and leadership climates variance between groups tends to be minimal
(Boulet & Parent-Lamarche, 2022; Hakanen & Schaufeli, 2020). This finding also suggests that well-being and
performance are more likely influenced by individual and organisational factors (e.g., workload, leadership
style, or role clarity) rather than demographic or group-level characteristics.
Furthermore, the lack of significant group differences supports the notion that psychological well-being is
a personal and contextually moderated construct (Donaldson et al., 2022). It depends less on categorical
attributes such as age or tenure, and more on the perceived emotional climate and job resources available to
employees. Therefore, organisational policies that address psychological well-being should be
applied universally, focusing on enhancing engagement, recognition, and job autonomy rather than targeting
specific employee groups.
The regression analysis revealed a statistically significant but negative effect of PWB on WP (β = –0.232, p =
.008). This outcome diverges from previous studies reporting a positive association between mental well-being
and performance (Zhang & Zhang, 2020; Leka & Nicholson, 2021). However, more recent research
acknowledges that the well-being–performance link is not always linear and may follow an inverted U-shaped
pattern, where moderate levels of well-being optimise performance while very high levels may reduce drive or
performance intensity (Ab Hamid & Hassan, 2021; Ahmad et al., 2022).
In the context of this study, employees with higher well-being may experience greater emotional balance and
satisfaction, potentially leading to a reduction in task urgency or performance pressure. This interpretation aligns
with findings by Ahmad et al. (2022), who argue that excessive comfort can sometimes weaken intrinsic
motivation when job demands are moderate or low. Additionally, workplace contextual factors such as
leadership quality, task structure, and workload distribution may moderate this relationship (Hakanen &
Schaufeli, 2020).
Therefore, while psychological well-being remains essential for sustainable productivity, it must be
complemented by effective job design, supportive leadership, and performance feedback mechanisms.
Interventions that enhance engagement, rather than comfort alone, are more likely to generate positive
performance outcomes.
The combined ANOVA and regression results suggest that psychological well-being alone does not guarantee
higher work performance, especially when organisational support and job structure are not optimally aligned.
The non-significant group differences highlight that well-being and performance issues are widespread across
employee segments, while the negative regression relationship underscores the importance of balanced well-
being rather than overemphasis on comfort.
Organisations should therefore adopt a strategic well-being approach promoting positive mental health,
engagement, and resilience while maintaining appropriate job challenges to preserve motivation. Leadership
development and resource management are crucial in achieving this equilibrium. Future research should examine
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
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mediating factors such as work engagement, emotional regulation, and task demands, which may better explain
how well-being influences performance outcomes across different workplace contexts. Regarding gender,
contemporary findings are nuanced. A 2024 multi-group SEM study using the HERO model reports that, while
women perceived more resources (and consequently greater well-being and job performance), core resource–
well-being–performance relationships held across genders, suggesting generalizability of the well-being–
performance mechanism. This aligns with longitudinal and review evidence indicating that well-being–
performance links are broadly consistent, even as contextual factors (e.g., resources, trust, leadership) shape
magnitudes. At the organizational level, leaders and climates that promote health and trust can amplify the well-
being performance pathway. Recent reviews and empirical work highlight that supportive leadership and trust
in supervisors strengthen satisfaction and performance outcomes associated with PWB again pointing to
mediated effects rather than purely direct impacts. Finally, convergent evidence shows that poor mental health
(depression/anxiety) is reliably associated with lost productivity (absenteeism/presenteeism), further justifying
investments in preventive well-being initiatives.
CONCLUSION
In summary, psychological well-being serves as a crucial predictor of work performance, significantly boosting
employee productivity, engagement, and job satisfaction. Individuals with high psychological well-being tend
to be more resilient, motivated, and proactive, leading to improved performance outcomes. Research has
consistently shown that psychological well-being enhances focus, fosters better teamwork, and reduces turnover
rates, making it an essential asset for both employees and organizations. Moreover, findings indicate that this
relationship is consistent across genders, implying that efforts to promote psychological well-being can
effectively support a diverse workforce. Consequently, organizations that prioritize the mental and emotional
well-being of their employees are likely to witness significant enhancements in overall work performance.
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