The influence and development of psychological capital in the job

International Journal for Educational and Vocational Guidance https://doi.org/10.1007/s10775-018-9385-2

The influence and development of psychological capital in the job search context Konstantina Georgiou1 · Ioannis Nikolaou1 Received: 28 February 2018 / Accepted: 28 November 2018 © Springer Nature B.V. 2018

Abstract Past research shows Psychological Capital (PsyCap) to be associated with behaviors and performance at work, but few studies link PsyCap to the job seeking process. This project highlights how PsyCap might support persistence and success among job seekers. In study 1, using a two-wave design (N = 447), findings indicate that PsyCap might help individuals persist in job seeking, resulting in more interviews, offers, and employment. In study 2, using a quasi-experimental design (N = 361), findings indicate that PsyCap can be developed among job seekers through the PsyCap intervention model. Practical implications for counsellors and job seekers are discussed. Keywords Job search behavior · Job search outcomes · Psychological capital Résumé L’influence et le développement du capital psychologique dans le contexte de la recherche d’emploi Des recherches ont montré que le capital psychologique (PsyCap) est associé aux comportements et aux performances au travail, mais peu d’études ont établi un lien entre PsyCap et le processus de recherche d’emploi. Notre projet montre comment PsyCap pourrait favoriser la persistance et le succès des demandeurs·euses d’emploi. Dans une première étude à deux points de mesure (N = 447), les résultats indiquent que PsyCap peut aider les personnes à persévérer dans leur recherche d’un emploi et obtiennent ainsi davantage d’entretiens, d’offres et d’emplois. Dans une seconde étude quasi-expérimentale (N = 361), les résultats indiquent que PsyCap peut être développé chez les demandeurs d’emploi grâce au modèle d’intervention PsyCap. Les implications pratiques pour les conseillers·ères et les demandeurs·euses d’emploi sont discutées. Zusammenfassung Der Entwicklungseinfluss von Psychologischem Kapital im Kontext der Arbeitsuche Untersuchungen zeigen, dass Psychologisches Kapital (PsyCap) mit Verhalten und Leistung am Arbeitsplatz in Verbindung gebracht werden kann. Jedoch verbinExtended author information available on the last page of the article

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International Journal for Educational and Vocational Guidance

den nur wenige Studien PsyCap mit dem Prozess der Arbeitssuche. Dieses Projekt zeigt, wie PsyCap die Persistenz und den Erfolg bei Arbeitsuchenden fördern kann. Studie 1, mit zwei Erhebungswellen (N = 447), zeigt, dass PsyCap die Ausdauer der Arbeitsuche bei Einzelpersonen verbessern kann, welches sich positiv auf Interviews, Angebote und Beschäftigung auswirkt. In Studie 2, mit einem quasi-experimentellen Design (N = 361), deuten die Ergebnisse darauf hin, dass Arbeitsuchende durch Interventionen des PsyCap Modells Psychologisches Kapital entwickeln können. Es werden praktische Auswirkungen auf Berater und Arbeitsuchende diskutiert. Resumen La influencia y desarrollo del capital psicológico en el contexto de búsqueda de trabajo Investigaciones anteriores han mostrado que el capital psicológico (PsyCap) está asociado con los comportamientos y actuaciones en el trabajo pero pocos estudios vinculan el PsyCap con el proceso de búsqueda de empleo. Este proyecto destaca como el PsyCap podria dar apoyo a la persistencia y el éxito entre personas en búsqueda de empleoa. En el estudio 1 y utilizando un diseño de dos etapas (N = 477), los resultados indican que el PsyCap podria ayudar a los individuos a persisitir en la búsqueda de empleo, resultando en más entrevistas, ofertas y empleo. En el estudio 2 y utlizando un diseño cuasi experimental (N = 361), los resultados indican que el PsyCap puede ser desarrollado entre personas en búsqueda de empleo a traves de un modelo de intervención en el PsyCap. El artículo incluye la discusión acerca de las implicaciones prácticas para orientadores y personas en búsqueda de empleo.

Introduction Previous studies have focused predominantly on the negative aspects of unemployment at the personal level, such as reduced mental health or depression (e.g., DeFrank & Ivancevich, 1986; McKee-Ryan, Song, Wanberg, & Kinicki, 2005). That is understandable given the problems that unemployment and job seeking bring (i.e., discouragement, poor health, financial hardship). However, the focus on the adverse events of unemployment does not contribute to the discovery of variables that might help individuals in finding employment (Kanfer & Hulin, 1985). Scholars of unemployment and job search have given much attention to the necessary human and social capital to gain reemployment following a job loss (Gowan & Lepak, 2007; Wanberg, Hough, & Song, 2002). Luthans, Luthans, & Luthans (2004), suggested to go beyond these types of assets and explore the role of Psychological Capital (PsyCap) in improving individual and organizational performance. PsyCap represents the positive psychological state of development which refers to the resources of hope, optimism, self-efficacy and resilience (Luthans, Avolio, & Youssef-Morgan, 2015). More specifically, PsyCap resource of hope refers to the will and ability to set goals and identify paths to achieve those goals and persevere towards them if needed by finding alternative paths to reach them (Snyder, 2000 in Luthans, Avolio, Avey, & Norman, 2007). PsyCap resource of optimism refers to positive outlooks on present and future outcomes while self-efficacy refers to the confidence in oneself’ s

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ability to take and put the appropriate effort to successfully complete a task (Luthans et al., 2007). Finally, PsyCap resource of resilience refers to the capacity to bounce back from adversities and even continue towards success (Luthans et al., 2007). Although PsyCap has been examined in the organizational context (e.g., Avey, Luthans, Jensen, 2009; Luthans, Norman, Avolio, Avey, 2008), much less is known about PsyCap in the job seeking process. Since there is empirical evidence that supports the importance of PsyCap for work and academic performance (e.g., Luthans, Luthans, & Jensen, 2012; Luthans et al., 2007), it might be a useful advantage for job seekers as well, who are likely to face rejections and discouragements during the job seeking process, especially since PsyCap seems to be a state-like characteristic and open to development and change (Luthans et al., 2015). The purpose of our study is threefold. First, since PsyCap represents a positive state of mind, we examine how it affects job search behavior. Second, since previous research supports that job search behaviors predict job search success (e.g., number of interviews/job offers, employment status), we explore the relationship between PsyCap and job search outcomes. In particular, this study contributes to PsyCap research by linking it with the job seeking process in a more direct way, extending previous studies that explore its indirect relationship with job search behavior (Chen & Lim, 2012), as well as, by examining the relationship of PsyCap with job search outcomes. Finally, we aim to test whether PsyCap can be positively affected by a training intervention focused PsyCap’s development among job seekers. We expect that the successful development of job seekers’ PsyCap might help career counselors develop and carry out specific intervention programs to improve job seekers’ psychological well-being, in addition to the right skill set and social network and, as a result, gain a competitive advantage in their job seeking efforts. PsyCap and job seeking A number of studies have examined the positive aspects which might affect job search behavior and predict job search and employment outcomes. For example, job search self-efficacy has an impact on job search behaviors (Saks & Ashforth, 1999, 2000), number of interviews (Brown, Cober, Kane, Levy, & Shalhoop, 2006; Saks, 2006), job offers (e.g., Kanfer, Wanberg, & Kantrowitz, 2001; Sun, Song, & Lim, 2013), and employment status (e.g., Kanfer & Hulin, 1985; Saks & Ashforth, 1999). Optimism also influences job search behavior (Kanfer et al., 2001), whereas displaced employees who reacted to job loss with optimism systematically had positive thoughts about finding reemployment demonstrating increased motivation levels (Leana, Feldman, & Tan, 1998). Similarly, people with higher levels of hope demonstrated higher levels of goal-directed energy (Snyder et al., 1991) and as a result, reduced stress and anxiety levels during job search. Finally, resilience can be very useful for job seekers to recover from rejections that often come with the job search process (Fleig-Palmer, Luthans, & Mandernach, 2009; Lyons, Schweitzer, & Ng, 2015). These four factors, when combined, represent PsyCap or an individual’s positive psychological state of development (Luthans et al., 2015).

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The individual factors of PsyCap have received some support in the job search context as can be seen above. However, there is scarcely any research on the role of PsyCap as a higher order construct in the job search context. In organisational contexts, previous empirical findings demonstrate that PsyCap is significantly and strongly related to several employee attitudinal, behavioral, and performance outcomes (e.g., Avey, Luthans, & Youssef, 2010; Luthans et al., 2007) compared to the four factors individually. “By considering self-efficacy, hope, optimism, and resilience as important facets of PsyCap rather than focusing on any one individual facet in particular, their combined motivational effects are broader and more impactful on performance than any one of the constructs individually” (Luthans et al., 2007, p. 550). In the job search context, researchers claim that PsyCap influences the type of coping strategies the laid-off employees adopt and through them their job search behavior, and fatigue (Chen & Lim, 2012, Lim, Chen, Aw, & Tan, 2016). Positive psychological health and attitudes facilitate not only positive behaviors but positive outcomes as well (e.g., Avey, Wernsing, & Luthans, 2008; Turban, Lee, da Motta Veiga, Haggard, & Wu, 2013). Along these lines, PsyCap may be a very useful advantage for job seekers who are likely to have negative experiences during the job seeking process and thus, the need for broader and more impactful cognitive and motivational processes to be engaged in job seeking. Moreover, following Seligman’s (1975) concept of learned helplessness, discouragements and rejections that often occur during job search might lead individuals to reduce job search activities, or even stop looking for a job. “People can give up trying because they lack a sense of efficacy in achieving the required behavior, or they may be assured of their capabilities but give up trying because they expect their behavior to have no effect on an unresponsive environment or to be consistently punished.” (Bandura, 1977, pp. 204–205). A positive mindset is needed to help people adopt positive attitudes and behaviors. Unemployed persons who are independent, determined, persistent and resilient are more likely to be aggressive and assertive in their job search (Moorhouse & Caltabiano, 2007). Conservation of Resource Theory (Hobfoll, Shirom, Golembiewski, & Robert, 2001) supports that resource levels, such as participation in decision-making and social support have a positive effect on the use of active coping strategies (i.e., positive orientation, working harder, and seeking advice and assistance) (Ito & Brotheridge, 2003). Also, according to Conversation of Resources Theory, the more psychological resources an individual possesses, the more equipped he/she is to invest in additional resource generating activities (Hobfoll et al., 2001). We suggest that a job seeker who possesses the four psychological positive resources of PsyCap is more likely to engage in resource generating activities such as looking for a job. Therefore, we propose our first hypothesis (H1): PsyCap is positively related to job search behavior. PsyCap and job search success Scholars distinguish between several job search success variables. The most popular variables in employment and job search research are quantitative employment outcomes that assess, for example, employment status (i.e. whether an individual found

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a job) or employment speed (i.e. the time spent to obtain employment) (e.g., Kanfer et al., 2001). Apart from these distal employment outcomes, scholars have explored proximal outcomes, which take place during job search (i.e., number of job interviews/job offers) (Van Hooft, Wanberg, & Van Hoye, 2012). There is considerable evidence on the relationship between job search behaviors with job search and employment outcomes. For instance, the less frequently individuals are looking for a job, the less probable it is to be invited to a job interview or receive a job offer (Van Hooft et al., 2012). Moreover, job search has been described as an unfolding process where job seekers, in order to receive a job offer and obtain employment, they first need to succeed in the earlier stages of the recruitment process, for example interviews and site visits (Saks, 2006; Turban et al., 2013). Finally, individual characteristics, such as self-efficacy, are posed to affect the number of interviews and employment success through job search behaviors (e.g., Kanfer et al., 2001, Sun et al., 2013). PsyCap, as a positive state of mind, could have an important role in facilitating the job seeking process by influencing job search success via job search behavior. We argue that PsyCap can increase job search behavior which, in turn, might have an impact on job search outcomes (number of interviews/job offers, and employment status). Therefore, we propose our second hypothesis (H2): Job search behavior mediates the relationship between PsyCap and job search outcomes. PsyCap development The important role that PsyCap can play in the job search process calls for PsyCap’s development among job seekers (Chen & Lim, 2012). Job seekers who possess high levels of PsyCap have a tendency to persist in their job search despite the adversities and obstacles (e.g., rejections from potential employers) they might face. The development of PsyCap levels among job seekers might be very useful in recovering, persisting and succeeding in job search. Previous research has shown that PsyCap can be developed through training interventions (e.g. Demerouti, van Eeuwijk, Snelder, & Wild, 2011; Luthans, Avey, & Patera, 2008). A PsyCap training intervention was developed by Luthans et al. (2006) and was found to increase the levels of hope, efficacy, resilience, and optimism as well as the overall levels of PsyCap. More specifically, it was found to increase levels of PsyCap in organizational and educational settings, and was also associated with both work and academic performance (e.g., Luthans, Avey, Avolio, & Peterson, 2010, Luthans, Luthans, & Avey, 2014, Luthans et al., 2012). However, there is no research exploring the PsyCap development in a job search context. Following the beneficial effect PsyCap seems to have in the job seeking process, we suggest that PsyCap training can help job seekers cope with adversities, such as rejections that often come with job search. Our third hypothesis is as follows (H3): Job seekers’ PsyCap levels can be developed via training. In order to explore the aforementioned hypotheses, we conducted two studies. Study 1 dealt with hypotheses 1 and 2, and study 2 with hypothesis 3.

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Study 1 Method and procedure The study was conducted in Greece and participants (N = 447) in our study were unemployed job seekers. To recruit them an announcement was posted at a recruitment site (Skywalker.gr) calling for candidates to participate in a survey about job search process by filling an on-line questionnaire. In total, 21% of the respondents were looking for a job less than 3 months, 23% 3–6 months, and 56% more than 6 months. The majority of respondents were female (62%) and had an average age of 34 (SD = 8.7). Also, the majority of participants had a bachelor degree (51%) or a post-graduate degree (29%), with 20% being high school graduates. Data were collected at two separate points in time. At Time 1 (T1), participants completed a questionnaire measuring PsyCap and job search behavior. Similarly to previous studies (e.g., Saks, 2006; Turban et al., 2013; Van Hooft & Noordzij, 2009), three months later (Time 2, T2), participants received an on-line questionnaire assessing their job search outcomes. Of the 574 individuals who completed the initial survey in T1, 447 (77.87%) completed the on-line questionnaire in T2 and were included in the subsequent analyses. Measures PsyCap (α = .83) was measured using the scale of Chen & Lim (2012). Participants indicated their agreement with each of 24 items on a 5-point scale (strongly disagree = 1 to strongly agree = 5). A sample item includes: “I feel confident analyzing a long-term problem to find a solution”. Job search behavior (α = .70) was measured with a shortened version (6 items) of Chen & Lim (2012) scale. Participants indicated their agreement on a 5-point scale (strongly disagree = 1 to strongly agree = 5). A sample item includes: “In the last 3 months I used the internet to locate job openings”. Job search & employment outcomes were assessed by asking participants to report the number of interviews and job offers they had during the last 3 months as well as if they had accepted a job offer or not (e.g., Georgiou, Nikolaou, Tomprou & Rafailidou, 2012; Saks, 2006). Results First of all, an inspection for high standardized errors (≥ 4.0) and low loadings (