Appraisal of economic crisis, psychological distress, and work-unit absenteeism: a 1-1-2 model

The recent global economic crisis has generated renewed interest in questions regarding the potential impact of such macro-level events on employee well-being and organizational productivity. Drawing on the stress-retention model of absenteeism, this study tests a cross-level model (1-1-2) in which employees’ negative appraisal of economic crisis is associated to work-unit absenteeism through their level of psychological distress. Data were collected after the 2008 global economic crisis in a large Italian company in the field of home furniture that comprises 1160 employees nested in 49 units (facilities or branches). Results from a Multilevel Structural Equation Modeling (MSEM) support the hypothesized model: psychological distress mediates the relationship between appraisal of economic crisis and work-unit absenteeism rate during the subsequent year. These results have implications for managers and other workers with responsibilities for improving productivity and maintaining employees’ well-being in turbulent times.