A model linking financial well-being and burnout in a South African engineering organisation

Abstract

Orientation: This study investigates a model linking financial well-being (FWB) and burnout of employees in a South African engineering organisation.Research purpose: To investigate how personal financial resources and burnout are interrelated, focussing on the roles of satisfaction with remuneration (SWR), personal financial efficacy (PFE), and financial interference (FI).Motivation for the study: This model could help management, human resources, and employees understand the complex dynamics of these phenomena and reduce burnout by implementing targeted interventions.Research approach/design and method: Purposive sampling (N = 515) was used. Structural equation modelling (SEM) with confirmatory factor analysis (CFA) and structural paths were employed.Main findings: The study found that SWR positively impacts positive personal financial well-being (PPFW) and negatively impacts negative personal financial well-being (NPFW). Personal financial efficacy positively affects PPFW and negatively affects NPFW. However, SWR did not significantly impact FI. Negative personal financial well-being strongly contributed to FI, which in turn increased burnout. Contrary to expectations, PPFW did not significantly reduce FI. Additionally, SWR indirectly reduced burnout through NPFW and FI in sequence.Practical/managerial implications: Organisations should ensure competitive and equitable reward and remuneration strategies to enhance employees’ financial well-being and reduce burnout. Financial self-efficacy can be improved through interventions focussing on PFE and integrated financial well-being programmes to mitigate the risk of burnout and its demands on human and organisational resources.Contribution/value-add: This study contributes to the limited research on financial well-being and burnout, highlighting the importance of fair remuneration and personal financial resources in promoting employee well-being and reducing burnout.