Objectives: The aim of this study is to investigate whether the psychological contract fulfilment is related to employee performance and job satisfaction in regular hybrid working and whether work engagement is a motivational mechanism that mediates between psychological contract fulfilment and performance and job satisfaction.
Research design/methodology/approach: A quantitative cross-sectional survey was carried out with 386 employees in hybrid working in knowledge-intensive and service organisations. A model comprised of four constructs was tested using the covariance-based structural equation modelling. The measurement model showed good fit (χ²/df = 1.93, CFI = .956, TLI = .949, RMSEA = .049, SRMR = .041).
Findings: Psychological contract fulfilment positively related to work engagement (β = .567, p < .001), job satisfaction (β = .294, p < .001) and employee performance (β = .124, p = .014). Work engagement was positively related to job satisfaction (β = .520, p < .001) and performance (β = .313, p < .001) and job satisfaction was positively related to performance (β = .301, p < .001). The model accounted for 32.2% of the variance in work engagement, 53.0% of the variance in job satisfaction and 42.2% of the variance in employee performance. Considerable indirect associations were also detected with bootstrap estimates that are consistent with the proposed mediation model.
Research limitations/implications: Due to the cross-sectional and self-report nature of the study, the indirect effects found should be considered theory-consistent associations, not temporal mediation.
Practical implications: Well communicated, consistent and equitably applied hybrid-work arrangements can help to improve engagement, satisfaction and performance.
Originality/value: The study builds on the existing literature on psychological contract theory and the hybrid work that is emerging after the pandemic by combining social exchange theory and the job demands-resources model.