How to foster employee quality of life: The role of employee performance management and authentic leadership

Abstract

Although employee performance management (EPM) enhances performance, the effects that these systems have on employee quality of life remain unclear. Such information is particularly relevant for ‘vulnerable’ workers, whose employment situation has the potential to alter their social and economic position in life. Based on data gathered from 111 leaders and 547 vulnerable workers in 36 social profit organizations, multilevel regression analysis demonstrates that EPM is related to vulnerable workers’ quality of life. Moreover, authentic leadership and psychological empowerment buffer the negative relationship between EPM and vulnerable workers’ quality of life. These findings imply that organizations that employ vulnerable workers need authentic leaders to foster a positive impact not only on performance through EPM but also on vulnerable workers’ quality of life. In addition, organizations can also pursue vulnerable workers’ psychological empowerment by providing tasks that are meaningful to them and in which they experience self-efficacy to reduce the potential negative effects of EPM on vulnerable workers’ quality of life.