Introduction
Employee happiness has attracted significant attention from scholars and practitioners because employees who are committed and engaged in their work exhibit greater performance and lower turnover intentions (Othman et al., 2018). Studies frequently associate workplace social contract, psychological contract, and work engagement with employee happiness. However, these studies mainly examine the individual relationship between these variables and neglect the subject of how moderating and mediating factors such as decent work factors may affect the relationship. Therefore, this literature review aims to explore and synthesize relevant research studies on workplace social support, psychological contracts, work engagement, and employee happiness in the UAE.
Employee Happiness
Early research studies on organizational behavior tended to focus more on the constructs of negative psychology applicable in the workplace, such as distress, anger, anxiety, burnout, and depression. Intensification of work, due to the persistent economic uncertainty and intensified competition, has spurred a gradual focus on examining the posit facets of human strengths that have become more substantial such as employee happiness at work (Dahiya & Rangnekar, 2018). During the current situation, employee happiness becomes subjective as well as an emerging topic in business and management (Joo & Lee, 2017). Employee happiness is given more importance because there is an influence on employee feelings, outcomes, emotions, and attitudes for happy and productive employees (Kiran & Khurram, 2018). Dahiya and Rangnekar (2018) argue that contemporary business organizations can achieve strategic business goals and objectives only if they adopt an appropriate management system with a positive approach that encourages and increases the happiness of their workforce. Therefore, the importance of employee happiness for both employees and employers cannot be underestimated.
Scholars and practitioners define the concept of employee happiness differently. According to Al-Ali et al. (2019), happiness generally describes an individual’s psychological well-being. Based on their research on fast-food restaurants in Jordan, Alserhan et al. (2021) found that happy employees are more satisfied with their work-life, exhibit positive emotional experiences, and have higher turnover intentions. According to a conceptual framework of happiness developed by Wesarat et al. (2014), the construct applies to positive emotional experiences related to the individual’s life and job. In the workplace, some scholars and researchers relate happiness to employee engagement (Othman et al., 2018). In this regard, employee happiness relates to how a person feels about the job and life in general.
Happiness has an impact on several employee and organizational outcomes. Majorly, employees who are happy at work are said to be more engaged and satisfied with their job, perform better, and tend to be more loyal to their employer (Claypool, 2017; Alserhan et al., 2021). Mérida‐López et al. (2019) stated that employees consider themselves happy when they are satisfied with the workplace. Joo and Lee (2017) mentioned that work-related employee happiness relates to the work environment as per the understanding of well-being or happiness. According to Eshelman and Rottinghaus (2019), there are five sub-dimensions to measure employee happiness. They include survival and power, social connection, self-determination, and meaning. Workplace happiness is also about career and work happiness, and there is a considerable relationship between work engagement and subjective well-being.
The important role of investing in employee happiness to ensure organizational success is being recognized in Arab countries. For instance, the UAE launched a national happiness program to enhance Emirati people’s happiness on a continuous basis depending on their emotional health as well (Estopace, 2017). Estopace (2017) explained that the program includes Emirati people being positive and happy. In 2016, the Government of the UAE launched the Ministry of Happiness to achieve a happier society as a part of the national project. It is considered to be one of the unique and innovative programs in the UAE that ensures that the people in the UAE are happy. Petkari and Ortiz-Tallo (2018) stressed that the population of the UAE is more than 9.5 million, and there are only 1.4 million Emiratis because the majority of the population are Filipinos, Pakistanis, and Indians. The launch of the national happiness program shows that the UAE is interested in the happiness and mental health of Emiratis.
There are empirical studies that focus on the UAE population in general. However, scholars have argued that there is little research focus on the Emiratis region only (Petkari & Ortiz-Tallo, 2018). Petkari and Ortiz-Tallo (2018) also stated that there are studies conducted either qualitative or quantitative, and triangulation is not considered for higher reliability and validity of happiness findings in the UAE. All these facts highlight the importance of research study on the happiness of Emiratis in the UAE with the use of blended research methods.
Workplace Social Support and Employee Happiness
Relational resources, particularly workplace social support, have a significant impact on employee happiness and success in the workplace. Workplace social support refers to the “exchange of resources between at least two individuals perceived by the provider or the recipient to be intended to enhance the well-being of the recipient’’ (Shumaker & Brownell, 1984, p. 13, as cited in Schutte & Loi, 2014). Kiran and Khurram (2018) and Parent-Lamarche and Marchand (2019) provided similar definitions of workplace social support by describing the construct as the support from employee’s colleagues and supervisors. Schutte and Loi (2014) explained that support from supervisory or managerial positions may take different forms, including direct, instrumental assistance with handling job-related problems and advice. Luchman and González-Morales (2013) agree with Schutte and Loi (2014) that workplace social support may manifest in a positive relationship with managers or supervisors. Workplace social support is a form of social capital – social networks, norms, and trust, which allow employees to cooperate and coordinate for mutual benefit (Schutte & Loi, 2014). Thus, workplace social support comes from all organizational levels and may take many different forms.
Furthermore, employees who receive support from their colleagues and supervisors tend to be happy in the workplace. Support from colleagues and supervisors have a positive impact on employee happiness. In a recent study of antecedents and mechanism of happiness at work, Qaiser et al. (2020) found that employees who receive support from their colleagues tend to be happier and thrive more at work than their peers with unfulfilled promises and expectations. In their study of 281 childcare teachers in Korea, Yuh and Choi (2017) established that support from both management and junior workmates predicted job satisfaction. Supervisors and colleagues showing social support enable happiness, and employees feel there is continuous support for problem-solving (Kaushal, 2020; Mérida-López et al., 2019; Jackman et al., 2020). Parent-Lamarche and Marchand (2019) also mentioned that social support enables better levels of well-being at the workplace because people feel they are important.
Workplace social support has a positive impact on employees’ health and overall well-being at work. The results of the investigation undertaken by Mundia et al. (2017) stated that people are happy at the workplace due to better work relationships showing less stress and good interpersonal relationships. Luchman and González-Morales (2013) explained that social support, particularly positive relationships with supervisory or management staff, may contribute to employee happiness by reducing job demands. Cho (2019) made consistent observations which showed that social support contributes to positive psychological wellbeing. These findings are confirmed by a recent study by Qaiser et al. (2020), which established that support from colleagues reduces the risk of employees feeling overwhelmed by job-related tasks. Therefore, it is essential that colleagues and supervisors are caring to enable social support at the workplace. The presence of an unsupportive and poor workplace means unsatisfied employees and higher rates of absenteeism.
Social support has been cited as one of the productive workplace behavior in the UAE. Jabeen and Isakovic (2018) found that organizations are able to achieve social support and interpersonal support through participation in decision-making. However, this study did not emphasize employee happiness but instead career satisfaction and trust. In another research by Waxin et al. (2020), it is possible to facilitate social support during social events and networking, where all employees get to attend. It includes socializing events for all employees and a mix of both work and non-work-related environments.
Hypothesis
This study hypothesizes that there exists a direct positive relationship between workplace social support and employee happiness. That is, employees who receive support from their colleagues and management are likely to be happier at work.
Psychological Contracts and Employee Happiness
A psychological contract is a psychological or cognitive state which defines how an individual perceives and relates to an organization. It refers to “an individual’s beliefs regarding the terms and conditions of a reciprocal exchange agreement between the focal person and another party” (Rousseau, 1989, p. 123, as cited in Hansen & Griep, 2016). It represents a sense of duty between the employee and employer or perceived mutual obligation to offer specific resources between the two parties. The psychological contract develops and is nurtured primarily based on how the employee interacts with the organization and its people, policies, and procedures (Hansen & Griep, 2016). Drawing on the psychoanalytic perspective, Driver (2018) regarded this mental model as to how employees perceive the way they relate or interact with their employer. In this regard, psychological contract relates to employees’ relationship with their work and organization as a whole.
Psychological contracts fall into two broad distinctive forms: transactional or relational. According to Knapp et al. (2020), transactional contracts tend to be short-term and based on monetary contracts, thus individuals pay more attention to materialistic gain rather than getting involved in others’ lives and activities. In light of this form of contract, workers are motivated largely by salary and wages. On the other hand, relational contracts go beyond monetary outcomes to include mutually rewarding socio-emotional relationships. Bal et al. (2013) explain that “the relationship between employees and employers is predicated on longer-term, open-ended engagement that enables workers to develop and grow with that employer” (p. 553). A positive psychological contract predicts employee happiness as employees who relate with an organization’s management tend to thrive and be happier at work (Qaiser et al., 2020). The way employees perceive their employer’s actions influence how they behave and feel about the organization. Therefore, when workers believe that their expectations are fulfilled, they are likely to exhibit positive attitudes and behaviors.
Hypothesis
In light of the existing literature, psychological contract is positively related to employee happiness.
Work Engagement and Employee Happiness
Practitioners and scholars are paying attention to employee engagement in a diversified field. Employee engagement is defined as the expression of people under employment showing positive feelings and a state of mind (Shuck et al., 2017). According to Eldor and Vigoda-Gadot (2017), employee engagement has been widely defined in the organizational behavior literature as “an active, fulfilling and work-related state of mind that includes a strong identification with the organization and self-expression” (p. 526). The construct has been associated with individuals who are more involved, passionate, enthusiastic, and energetic in the workplace (Eldor & Vigoda-Gadot, 2017). Othman et al. (2018) and Claypool (2017) consistently emphasized the need for scholars and practitioners to consider the aspect of employee engagement when measuring happiness. Othman et al. (2018) explained that happy employees exhibit higher commitment and engagement in their work. On the same note, Kumar and Pansari (2015) highlight five major dimensions of employee engagement, which are satisfaction, identification, commitment, loyalty, and performance. They equally characterize employees who are happy at work.
The growing interest in the link between employee engagement and happiness can be attributed to the value of positive emotions in the workplace. According to Kiran and Khurram (2018), work engagement is the engagement of employees at work based on emotional, cognitive, and physical involvement. Work engagement is about the feelings of employees being connected with their organization, and they are able to move ahead. Organizations usually pay attention to employee’s work engagement for the achievement of organizational goals. Halinski and Harrison (2020) studied employee work engagement, and the findings were interesting towards positive outcomes of the organization. Kotze (2018) stated that work engagement is actually a good and positive feeling and state of the mind so that employees can better handle their work-related demands. The characteristics of work engagement are absorption, dedication, and vigor. In light of the conceptual framework developed by Kumar and Pansari (2015), individuals who are engaged in their work tend to be strongly committed to, identify with, and be satisfied with what they do and their current employer.
Many companies in UAE are investing in programs focused on making both their human resources and customers satisfied and happy. Lasrado (2018) presented employee engagement within the UAE’s context for business growth and productivity. The emphasis of this study is not employee happiness but rather employee involvement to improve business performance and customer and employee satisfaction. Costantini et al. (2017) found that workers who exhibit higher engagement tend to be more energetic and have a good level of connection with what they do in the workplace. It is also considered as the positive behavior where positive outcomes are achieved. However, this study did not consider investigation with workplace social support or the role of decent work factors. Therefore, it is a good point for organizational motivation to ensure employee work engagements are boosted and particularly in the public sector.
Hypothesis
The research study anticipates finding that high engagement (job and organizational) increases employee happiness.
Moderating Effect of Decent Work Factors
Decent work makes up an integral component of employees’ happiness and overall wellbeing. Decent work is characterized by safe working environment that is free from any form of abuse, flexible work arrangements that allow work-life balance, and fair compensation, including access to adequate healthcare (Duffy et al., 2016). When all of these conditions are fulfilled, work is deemed decent, and employees become happy at work. The results of the study undertaken by Duffy et al. (2016) showed that many factors influence the ability to secure decent work, including marginalization, economic constraints, and feedback loop. This relationship may be mediated by an individual’s work volition and ability to adapt to the career, and moderated by variables such as proactive personality, critical consciousness, economic conditions, and social support (Duffy et al., 2016). However, the findings of this investigation are limited by the focus on people who are poor, marginalized, and facing low work opportunity.
Hypothesis
The researcher expects that the results of this investigation will show that decent work factors moderate the positive relationships between workplace social support, psychological contract, and employee engagement and employee happiness.
Underpinning Theory
There are varying theories of employee happiness and its relationship with other organizational outcomes. Kahneman’s (1999) happiness theory is based on objective happiness with both positive experience and hedonic that shows an emphasis on subjective experience. Diener and Lucas’s (2000) theory of happiness is about subjective well-being based on positive experience, satisfaction of life, and hedonic. According to Haybron (2003), there are three basic views of happiness theory, and they are hedonism, life satisfaction view, affective and subjective well-being. Waterman et al.’s (2010) happiness theory is about Eudaimonic well-being, and the focus is on personal excellence. Comparison Theory by Festinger’s (1954) implies that if one simply lowers one’s standards, one will be happy. It does not set any minimum standards for “a good life.” Affect Theory by Silvan Tomkins (1962) views happiness as a positive emotion that reflects an appraisal of how an individual feels. However, this theory does not capture the qualitative aspect of life experiences. Self-Determination Theory by Ryan et al. (2008) asserts that the satisfaction of three basic psychological needs, which are autonomy, competency, and relatedness, is essential to achieving personal growth, integrity, and happiness.
Some models of happiness identify varying dimensions and components of a happy life. According to the authentic happiness model developed by Seligman (2002) cited in Seligman (2011), an all-round happy life is marked by a sense of engagement, meaning, and pleasure. The revised framework includes five variables that are central to positive human wellbeing “positive emotions, Engagement, positive relationships, meaning, and Accomplishment” (Seligman, 2011). In light of the updated model, people who are highly engaged and relate positively with others in the workplace are likely to live a fulfilling, happier, and meaningful live. The recently published Psychology of Working Theory (PWT) makes more contribution to the psychology of working theory. Unlike other theories, it emphasizes the role of socioeconomic constraints in shaping work and well-being outcomes such as employee happiness (Duffy et al., 2016). According to the PWT, decent work consists of “(a) safe working conditions, both interpersonally and physically, (b) hours that allow for rest and free time, (c) organizational values that align with family and social values, (d)adequate compensation, and (e) access to fair health care” (Duffy et al., 2016, p. 127). Both the new well-being theory and PWT are fitting and will inform the proposed research.
Conclusion
The relationship between workplace social contract, psychological contract, work engagement, and employee happiness has been studied extensively. Research has established that workplace social contract, psychological contract, and work engagement are directly and positively related to employee happiness. However, these constructs are largely examined individually in different studies, thus, there is little understanding about the relationship between these variables. In addition, research on these relationships in Arab countries, remain relatively scarce. These findings suggest a need for further research to examine the relationship between workplace social support, psychological contracts, work engagement, and employee happiness in the UAE and how decent work factors moderate this relationship.
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Appendix A
Format for Literature Review Assignment
In recent years, the study of employee happiness has attracted significant attention from scholars and practitioners and has become an increasingly important research topic in the field of organizational behavior. Studies frequently associate workplace social contract, psychological contract, and work engagement with employee happiness. However, these studies mainly examine the individual relationship between these variables and neglect the subject of how moderating and mediating factors such as decent work factors may affect the relationship. Therefore, this literature review aims to explore and synthesize relevant research studies on workplace social support, psychological contracts, work engagement, and employee happiness in the UAE.
Employee Happiness [DV]
Workplace Social Support
There is a direct positive relationship between workplace social support and employee happiness (Joo & Lee, 2017; Kaushal, 2020; Mérida-López et al., 2019; Jackman et al., 2020).
Psychological Contracts
Positive psychological contract predicts employee happiness as employees who relate with an organization’s management tend to thrive and be happier at work (Qaiser et al., 2020).
There is a positive relationship between psychological contract and employee happiness
Employee Engagement
Employee engagement is significantly directly related with employee happiness because individuals who are engaged in their work tend to exhibit higher job satisfaction, commitment and loyalty to the organization, job performance, and collaboration with colleagues (Kumar & Pansari, 2015; Kiran & Khurram, 2018; Kotze, 2018)
There is a positive relationship between employee engagement and employee happiness
Decent Work Factors
Decent work factors (such as safe working conditions, flexible work arrangement, and adequate compensation) impact the relationship between workplace social support, psychological contract, and employee engagement and employee happiness (Duffy et al., 2016).
Decent work factors moderate the positive relationships between workplace social support, psychological contract, and employee engagement and employee happiness.
Underpinning Theory
Conclusion
The relationship between workplace social contract, psychological contract, work engagement, and employee happiness has been studied extensively. Research has established that workplace social contract, psychological contract, and work engagement are directly and positively related to employee happiness. However, these constructs are largely examined individually in different studies, thus, there is little understanding about the relationship between these variables. In addition, research on these relationships in Arab countries remains relatively scarce. These findings suggest a need for further research to examine the relationship between workplace social support, psychological contracts, work engagement, and employee happiness in the UAE and how decent work factors moderate this relationship.