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Setbacks and failures are part of organizational life. While a recent body of literature pointed to the importance of recovery, resilience, and learning from failure in responding to and dealing with setback events, the setback itself and its underlying dimensions remain underexplored. However, how severe employees perceive a setback to be plays an integral role in how successfully they handle these events. Taking an event-oriented perspective on work-related setbacks, this study defines setback severity as the setback event’s novelty, disruptiveness, and criticality. Based on the current literature and prior operationalizations, the authors introduce and validate a three-dimensional measure of setback severity. The exploratory and confirmatory factor analyses provide support for the proposed three-dimensional model. Further analyses show that disruptiveness and criticality are significantly related to identity threat, emotional exhaustion, trauma, turnover intention, and thriving, while novelty is only related to turnover intention and thriving. The implications of the setback severity measure are discussed along with recommendations for future research.

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