Impact of Toxic Work Environment and Well-Being on Life Satisfaction: Mediation of Servant Leadership

Purpose: This research highlights the interconnection among psychological contract breach, self-efficacy, abusive supervision, financial wellbeing and servant leadership as a mediator that are extensively studied in global contexts. This study provides substantial empirical evidence by examining the interaction of these variables within the distinctive workplace dynamics of a developing country. Moreover, it aims to offer evidence-based strategies to improve workplace wellness, boost productivity, and enhance employee satisfaction through servant leadership. Design/Methodology/Approach: Smart PLS 4 was utilised for Structural Equation Modelling (SEM) to analyse the theoretical pathways and interactions among the variables, whereas SPSS Statistics was employed to produce demographic data and descriptive statistics. A total of 450 replies were gathered, of which 68 were classified as offensive or outliers and therefore excluded using SPSS Findings: The results show that psychological contract breach, financial well-being and abusive supervision have significantly negative impact on life satisfaction while self-efficacy shows positive and significant impact. The findings show that servant leadership is positively, significantly and partially mediates the relation between these variables. Implications/Originality/Value: It is found that all the variable except self-efficacy have negative and significant relationship with life satisfaction in absence of servant leadership. Therefore, servant leadership found to play pivotal mediating role in the study for employee wellbeing and life satisfaction.