A moderated mediation study of high performance work systems and insomnia on New Zealand employees: job burnout mediating and work-life balance moderating

We explore the wellbeing of employees (via insomnia and job burnout) due to the importance of a healthy workforce. High Performance Work Systems (HPWS) have been argued as playing a central role, and the present study explores a path model whereby HPWS influences job burnout (emotional exhaustion, cynicism) and then insomnia. Further, work-life balance (WLB) is included as a theoretically derived moderator which might attenuate relationships. These relationships are tested using a sample of 306 employees with time-lagged data, using moderated mediation analysis. The findings show that HPWS is significantly related to all constructs, and while burnout mediates HPWS effects, there remain significant indirect effects. Further, WLB predicts all wellbeing outcomes and interacts with HPWS towards cynicism, and then acts as a boundary condition on the moderated mediation model. Ultimately, we find the indirect effect of HPWS on insomnia (through cynicism) becomes weaker as employee WLB gets stronger. The findings suggest that managing employee wellbeing is a complex process working through various factors, although HPWS appear to play a key role with WLB. The implications for HR are discussed.