Organizational Trust Effect on HRM Practices and Employee well-being

Changing conditions in an organization's environment related to the economic and social challenges caused by the COVID-19 pandemic have stimulated changes in organizations' attitudes towards employee well-being. In organizations where a high level of trust is perceived to be present, that trust contributes to the well-being of the employees. This paper investigates the effects of organizational trust on the relationship between human resource management practices and employee well-being dimensions. Method: An anonymous survey of 638 employees in Lithuania was conducted. The research was designed based on a 6-dimensional scale of perceived human resources management policies and practices, a 3-dimensional questionnaire of employee well-being (life well-being, workplace well-being and psychological well-being), and a modified 3-dimensional questionnaire of organizational trust. Questionnaire items were measured on a 5-point Likert scale. Survey data were analyzed using descriptive statistics, correlations, multiple linear regressions and mediation analysis. Findings: Specific relationships were found between various HRM practices with LWB, WWB and PWB in having a full effect or in having a partial effect. This empirical study showed that select HRM practices positively influence various dimensions of employee well-being through the mediating effect of organizational trust. Managerial implications: Based on the results of the survey, different dimensions of employee well-being at work in Lithuania can best be improved by the strengthening of organizational trust through following these HRM practices: "recruitment and selection", "involvement", "training, development & education", "work conditions", "competence-based performance appraisal" and "compensation and rewards".