Catching on: Work stress, employee wellbeing, and the moderating role of team-level emotional contagion

Abstract Work stress and employee wellbeing have gained heightened attention since the COVID-19 pandemic. Until now, organizations have primarily sought to conceptualize these variables as an individual-level phenomenon; thereby neglecting the potential influence of social dynamics within the workplace. Drawing on conservation of resources and emotional contagion theories, this study examines the extent to which team-level emotional contagion moderates the impact of stress on wellbeing, factoring in multilevel effects. Data from 237 professional services employees nested within 41 teams was analyzed. The results show support for emotional contagion as a team-level moderator between individual-level work stress and employee wellbeing. The role of organizational resources in shaping stress and wellbeing outcomes was also significant. This study underscores the significance of team dynamics and organizational resources in shaping employee wellbeing. Well-targeted, stress alleviation, and team-contagion enhancing initiatives will have a more positive impact on wellbeing, than individually targeted stress alleviation initiatives in isolation.