Fueling Employee Proactivity and Thriving at Work through Wellbeing-oriented HRM: Unique and Relative Importance of Psychological Needs Satisfaction

Purpose –This research seeks to account for the effect of wellbeing-oriented HRM on employee proactivity and thriving at work and examine the mediating role of psychological needs satisfaction (autonomy, competence and relatedness) based on self-determination theory. Design/methodology/approach – Using a cross-sectional research design, 408 frontline employees from banking organizations in Pakistan were sampled and the hypothesized relationships were tested by employing variance-based structural equation modeling technique through SmartPLS 4 software. Findings – The results indicate that wellbeing-oriented HRM has direct and positive relationship with employee proactivity and thriving at work. Additionally, competence and relatedness need satisfaction mediate these relationships. However, in contrast to self-determination theory, mediating role of autonomy need satisfaction was not found. Practical implications – This investigation uncovers the role of wellbeing-oriented HRM in developing a proactive and thriving workforce in service-oriented organizations. Particularly, findings of this research suggest managers of banking organizations to enact a system of employee-centric HRM practices that mainly focus on employee wellbeing and can foster employee proactivity and thriving directly and through satisfaction of competence and relatedness needs. Originality/value –This research suggests wellbeing-oriented HRM as a vital pathway to foster employee proactivity and thriving simultaneously. Findings of this study enlighten unique and relative importance of three psychological needs satisfaction and underscore the necessity to make appropriate investments in employee-focused HRM practices to foster employee proactivity and thriving concurrently through satisfaction of competence and relatedness needs.