Values, wellbeing, and job satisfaction in telework: Evidence from IT-enabled service firms

Abstract

The widespread adoption of telework, initially driven by the COVID-19 pandemic, has persisted beyond the crisis, reshaping organizational practices and redefining employee expectations. Despite its accelerated implementation, limited research has explored how teleworking environments influence employee value orientations and their impact on wellbeing and job satisfaction. This study examines the distinct effects of terminal and instrumental values on two dimensions of employee wellbeing—psychological and subjective—and how these, in turn, affect job satisfaction in a teleworking environment. Focusing on IT-enabled service firms in India, this study provides insights into a developing market where telework is increasingly becoming mainstream. An online survey yielded 715 responses from employees working in these firms, which were analyzed using covariance-based structural equation modeling (CB-SEM). Findings reveal that both terminal and instrumental values positively influence psychological and subjective wellbeing, which subsequently enhance job satisfaction, and that psychological and subjective wellbeing partially mediate the relationship between these values and job satisfaction. The study's contributions therefore lie in providing a better understanding of how value-driven motivations influence employee wellbeing and satisfaction when they work from home or remotely (theoretical contribution) while providing actionable implications for improving telework policies and practices (practical contribution).