COVID-19 is mercilessly sweeping through our country, and affecting our lives, our economy, and our businesses.
Sadly, there have been many casualties along the way, and some businesses will be forced to shut their doors. However, there will be some that will manage to get through these tough times, largely because of the support of their employees. At this stage, a company’s nancial reserves do play a critical role, but ultimately it’s the people – the heartbeat of a business – who make everything happen. This means that if you want your business to survive, thrive, and gain a competitive advantage, it’s the ideal time to invest in the well-being of your people.
Psychological Capital, also referred to as PsyCap, was pioneered by Fred Luthans, a management professor specialising in organisational behaviour at the University of Nebraska, in 2002. It’s defined as an individual’s positive psychological state of development, characterised by hope, efficacy, resilience, and optimism. The underlying principle of PsyCap is to grow people psychologically, rather than to train them. Companies often spend time and money growing people’s explicit knowledge by enhancing their skills and competencies, but don’t invest the same kind of resources in growing tacit knowledge, such as people’s mindsets, attitudes, and psychological stamina. Research has continuously demonstrated the benefit of rolling out PsyCap in companies, starting with increased performance, engagement, and job satisfaction, and carrying through to personal life satisfaction, well-being, and health benefits.