Our understanding of the organizational consequences of financial stress is limited and incomplete. Drawing on conservation of resources theory, this study examined the impact of financial stress on employee voice, a valued organizational outcome. It also examined if this relationship is mediated by two types of resources, cognitive and emotional.
The direct and mediated relationships were examined using a time-lagged, three-wave design that relied on data collected from two different sources.
Results indicate that financial stress is negatively related to employee voice behavior and that this effect occurs primarily through emotional exhaustion. While financial stress reduced cognitive capacity, a cognitive resource, it did not impact employee voice.
This study offers several practical implications, such as how to reduce financial stress as well as mitigate the negative effects of emotional exhaustion on employee voice.
Employee voice is crucial for creativity, opportunity discovery and designing innovation, enhancing human resource management policies and practices. Since financial stress is distinct from work-related stressors, examining whether financial stress impacts employee voice has theoretical as well as practical implications.
