Psychological Capital as a Predictor of Employee Engagement

The purpose of this study is to investigate the relationship between Psychological Capital (PsyCap) and Employee Engagement. PsyCap has been linked to numerous valued work outcomes ranging from job satisfaction to work performance. This study examines working adults (N=131) that have been with their current organization for longer than six months. Results indicate that all four components of PsyCap, as well as overall PsyCap, positively relate to Engagement. When overall PsyCap was compared against each of its individual components through regression and usefulness analysis, Hope was found to be the strongest predictor of engagement, with Optimism being the second strongest predictor. Resilience and Efficacy may also have a negative relationship to Engagement when the variance of overall PsyCap is accounted for. Implications from this study as well as recommendations for future studies are discussed.