Employee Well-Being: The Role of Perceived Competence

Abstract

Competence is a meaningful factor for coping in working life in continually changing work environments. Incompetence is not just a factor for poor performance, but also a potential threat for employee well-being. The purpose of the study is to gain more understanding of how competence might matter from the perspective of well-being at work. We explore how perceived competence is connected to perceived work-related well-being among Baby Boomer, Generation X, and Generation Y employees. The frames of reference of the study is based on literature on employee well-being (measured with work engagement and overcommitment) and competence, as well as on generational discussions. The quantitative, questionnaire-based study was conducted in 88 companies in Finland the total number of respondents being 4418. The main finding was that perceived competence related to current duties are a statistically significantly connected to employee well-being. The results indicate that high competence results in high employee well-being in all generational groups. Further, Generation Y estimated their work well-being, both in terms of work engagement and overcommitment, lower than Baby Boomers or Generation X. On a practical note, developing competence of employees in organizations seems to be a mean to support work well-being among other benefits. It is especially important to pay attention to that among generation Y, who take their first steps in working life.