Examining the Mutual Gains Model of Well‐Being‐Oriented HRM: Evidence From the Healthcare Sector

ABSTRACT Well‐being‐oriented human resource management (WBHRM) posits the benefits for both employees and the employer. Yet, our review has revealed that sophisticated theorisation and subsequent empirical testing of such a mutual gains thesis are scarce. Against this backdrop, we attempt to do so in a highly demanding healthcare context. Drawing on the job demands‐resources model and social exchange theory, we establish a dual pathway wherein WBHRM reduces nurse burnout via role breadth self‐efficacy and enhances proactive behaviour through felt responsibility for change—ultimately improving unit‐level patient care quality. Using multi‐source, time‐lagged data from 1564 nurses and 1120 patients across 128 hospital units, our multilevel analyses substantiated that the developing and caring functions of WBHRM were found to shape psychological and behavioural outcomes, which in aggregate translated into better patient care. Our findings offer compelling evidence for the viability of WBHRM, even in resource‐constrained environments, and underscore its strategic value in ensuring sustainable healthcare performance. Overall, the study contributes to the emerging field of research in strategic HRM by articulating the micro process underpinning the WBHRM‐performance relationship and provides practical guidance for hospital leaders seeking to enhance people management systems for mutual benefits.