THE IMPACT OF HYBRID WORKING ON EMPLOYEE WELL-BEING WITH THE MODERATING ROLE OF ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF IT SECTOR IN PAKISTAN

Abstract

Purpose – This paper examines the effect of hybrid working arrangements on employee well-being in the IT sector of Pakistan, with special reference to the moderating role of organizational performance. It further explores the mediating mechanisms of work-life balance, mental health, and physical health.

Design/Methodology/Approach – A quantitative cross-sectional survey was conducted among 462 IT professionals from Lahore and Karachi. Data were gathered using a structured questionnaire assessing hybrid work, employee well-being, organizational performance, and demographic controls. Hierarchical regression, PROCESS for moderation analysis, and bootstrapping mediation were employed to test hypothesized relationships.

Findings – Hybrid working significantly enhances employee well-being (β = 0.40, p < 0.001). This relationship is moderated by organizational performance (β = 0.18, p < 0.001) such that the positive effect is stronger for high-performing organizations. The main effect is partially mediated by work-life balance, mental health improvement, and reduced physical exhaustion, among which mental health is the strongest mediator (indirect effect = 0.11). Despite challenges like internet/electricity issues and lesser team connectivity, 81.2% of employees want to continue hybrid arrangements.

Practical Implications – Organizations need to invest in technological infrastructure, managerial training, and enabling policies to realize the benefits of hybrid work. Recommendations are provided for approaches targeting junior employees and addressing career visibility concerns.

Originality/Value – This study extends the Job Demands-Resources model by introducing organizational performance as a contextual moderator, a novel contribution in the hybrid work literature. It also provides empirical evidence from a developing economy context, addressing a significant research gap.