Buffering the impact: Psychological capital as a moderator between socioeconomic stressors and employee wellbeing in South Africa.

Abstract

Psychological Capital (PsyCap) has been widely recognised as a vital psychological resource that fosters resilience and well-being in employees. However, its role in mitigating the effects of socioeconomic stressors within developing economies remains insufficiently explored. This study investigates the relationship between socioeconomic stressors and employee well-being, examining whether PsyCap moderates this relationship. Given the financial strain, job insecurity, and systemic inequalities prevalent in emerging markets, understanding the protective role of PsyCap is essential for both employees and organisations. The study employed a quantitative research design, using the Perceived Economic Scarcity Scale (PESS), the Psychological Capital Scale, and the Warwick-Edinburgh Mental Wellbeing Scale (WEMWBS) to assess these relationships among employees. Descriptive statistics, correlation analyses, and moderated multiple regression analyses were conducted to explore these associations. The findings revealed a significant negative relationship between socioeconomic stressors and employee well-being, reinforcing the adverse psychological impact of financial hardship and economic instability. PsyCap was found to have a strong positive association with well-being, affirming its role as a psychological resource that promotes resilience. However, the study did not find evidence to support the moderating effect of PsyCap, indicating that while it enhances well-being, it does not significantly buffer employees against the detrimental effects of economic stressors. By situating PsyCap within a developing economy, this study extends existing research and offers valuable insights for organisations operating in resource-constrained environments. Keywords: Psychological Capital, employee well-being, socioeconomic stressors, resilience