Impact of Workplace Culture on Employee Wellbeing: A Test of Work-Life Balance Mediating Effect

Abstract

Previous research suggests that improving workplace cultures can impact employee wellbeing. However, little research is known about how workplace culture influences employee wellbeing, and whether work-life balance mediates this relationship. We propose a positive relationship between workplace culture and employee wellbeing based on perceived organisational theory. Further, based on the social exchange theory, we propose a mediating effect of work-life balance on the relationship between workplace culture and employee wellbeing. Based on quantitative research methods, this study collected data via a survey. The survey questionnaires were distributed among 300 middle-level employees from private sector banks in the Puttalam District in Sri Lanka. We employed regression analysis for data analysis. This study found a significant positive impact of workplace culture on employee wellbeing and a partial mediating effect of work-life balance on employee workplace culture and their wellbeing. Findings of this study support practitioners in understanding the importance of workplace culture and work-life balance on employee wellbeing.