Influence of Employee Wellbeing on Job Performance in the Hospitality Sector: Mediating Role of Work Engagement

Abstract

Background: The hospitality sector is one of the most people-centric industries whose performance directly influences customer experience, service quality, and organizational competitiveness. Given the demanding nature of hospitality work, employees are exployees are exposed to psychological, emotional, and physical strains, making employees' well-being a critical factor in sustaining workforce effectiveness.

Purpose: Grounded on the Job Demands-Resources Model, this study examines the influence of employee well-being on job performance in the hospitality sector through the mediating role of work engagement. The study also adds qualitative insights to provide a deeper understanding of how employee well-being shapes engagement and performance outcomes.

Design/methodology/approach: This study adopts an embedded mixed-method design, using a cross-sectional survey to collect data from 256 hospitality sector employees in Kathmandu Valley through purposive sampling, of which 193 respondents provided usable responses to an open-ended question. Quantitative data were analyzed using PLS-SEM, while qualitative responses were examined using reflexive thematic analysis with inductive coding to complement and contextualize the quantitative findings.

Findings: Employees' well-being was a significant predictor of job performance and work engagement. Likewise, work engagement mediated the relationship between employee well-being and job performance. The open-ended responses revealed four interrelated themes: psychological well-being as a foundational resource, work engagement as the behavioral mechanism, enhanced job performance outcomes, and supportive organizational context, demonstrating how employee well-being fosters engagement that ultimately translates into improved job performance.

Conclusion: Employees with higher levels of well-being tend to demonstrate greater emotional stability, resilience, and motivation, leading to better engagement at work. Therefore, the organizations should strategically invest in holistic employee well-being initiatives to strengthen employee engagement and sustain quality performance.

Keywords: Employee well-being, hospitality sector, job performance, work engagement