Don’t let them get stressed! HPWS mechanisms in improving psychological well-being in the workplace

Purpose The growing literature does not highlight the impact of high-performance work systems (HPWSs) on employee psychological well-being. This study aimed to test this influence by exploring the mediation of psychosocial safety and the moderation of supervisor support to overcome knowledge gaps in optimizing productivity in an increasingly dynamic workplace. Design/methodology/approach This study involved 395 service employees in Indonesia. Data were analyzed using the PROCESS macro approach. Findings The research findings indicate that while HPWS are perceived as organizational investments by employees, they do not directly impact employees’ psychological well-being in the service sector in Indonesia. Despite previous literature suggesting a positive relationship, this study emphasizes the importance of considering factors such as psychosocial safety and supervisor support in influencing employee perceptions. Research limitations/implications This study extends the existing literature on the mechanisms of HPWS in promoting psychological well-being in the workplace. Furthermore, Psychological safety has also been identified as a strategic approach to reduce workplace bullying. Practical implications Organizations should prioritize creating a work environment that considers psychosocial safety and provides adequate supervisor support to enhance employees’ psychological well-being. Understanding the unique needs and perceptions of employees, including factors such as age and gender, is crucial in designing effective HPWS that foster a positive workplace culture and mitigate potential negative impacts. Originality/value The authors seek to explore the not yet fully understood relationship between HPWS, psychosocial safety, and supervisor support in promoting employee psychological well-being. This research also provides a broader view of how to prevent employees from feeling pressured and stressed in the workplace.