A model linking financial well-being and burnout in a South African engineering organisation

Abstract

Orientation: This study investigates a model linking financial well-being (FWB) and burnout of employees in a South African engineering organisation. Research purpose: To investigate how personal financial resources and burnout are interrelated, focussing on the roles of satisfaction with remuneration (SWR), personal financial efficacy (PFE), and financial interference (FI). Motivation for the study: This model could help management, human resources, and employees understand the complex dynamics of these phenomena and reduce burnout by implementing targeted interventions. Research approach/design and method: Purposive sampling (N = 515) was used. Structural equation modelling (SEM) with confirmatory factor analysis (CFA) and structural paths were employed. Main findings: The study found that SWR positively impacts positive personal financial well-being (PPFW) and negatively impacts negative personal financial well-being (NPFW). Personal financial efficacy positively affects PPFW and negatively affects NPFW. However, SWR did not significantly impact FI. Negative personal financial well-being strongly contributed to FI, which in turn increased burnout. Contrary to expectations, PPFW did not significantly reduce FI. Additionally, SWR indirectly reduced burnout through NPFW and FI in sequence. Practical/managerial implications: Organisations should ensure competitive and equitable reward and remuneration strategies to enhance employees’ financial well-being and reduce burnout. Financial self-efficacy can be improved through interventions focussing on PFE and integrated financial well-being programmes to mitigate the risk of burnout and its demands on human and organisational resources. Contribution/value-add: This study contributes to the limited research on financial well-being and burnout, highlighting the importance of fair remuneration and personal financial resources in promoting employee well-being and reducing burnout.