Experiences of employees in a non-profit organisation : the role of psychological capital

Abstract

Research regarding employee well-being has generally been neglected in the non-profit organisation (NPO) sector. In many aspects NPOs function similar to for-profit organisations, but face challenges such as more financial restraints. Despite these difficulties, many people choose to work at and remain employed with NPOs. The NPO sector is expanding at a rapid pace and therefore needs to recruit and retain people more effectively without spending too many resources. The objective of this study was to investigate the role of psychological capital (PsyCap) in the decision to work in the NPO sector, and determine further reasons to choose and remain with this sector. An explanatory sequential mixed method design was used with an availability sample (N=108) of employees at an NPO in the social services sector in Gauteng and North West provinces. In the quantitative study, the Psychological Capital Questionnaire (PCQ) was used as measuring instrument. The qualitative study entailed semi-structured interviews with participants with lower (n = 8) and higher (n = 8) PsyCap. The results indicated that NPO employees had a higher level of PsyCap. Differences with regard to their preference to work at an NPO were found between individuals with higher and lower levels of PsyCap, specifically pertaining to the reasons for joining an NPO, motivation, meaning, fulfilment and viewing their work as a calling. No clear inconsistencies with regards to rewards and the choice of working in the NPO, public and private sectors were found among individuals with higher and lower PsyCap. The main reasons influencing the decision to work at an NPO were altruism, type of rewards, job satisfaction, organisational factors, positive social influence, and experiencing their work at an NPO as a calling. The study addresses the lack of research on employee well-being in the NPO sector and extends PsyCap research to NPOs. Characteristics of employees who choose to work in NPOs are emphasised. Recommendations for the organisation and suggestions for future research are presented.