Role of New Work In Increasing the Psychological Empowerment of Employees

Abstract

The psychological empowerment of employees plays a key role in organizational development. This paper explores the relationship between New Work practices and psychological empowerment from the employees’ perspective. While New Work is often framed technologically due to the influence of digitalization, its deeper impact on employees’ perception and motivation is frequently overlooked. Drawing on the theoretical foundation of psychological empowerment, the study identifies four key perceptual dimensions—competence, significance, self-determination, and influence—that form the basis for analyzing how New Work affects employees. The paper uses two common New Work measures—remote work (home office) and employee suggestion programs—to demonstrate how these practices foster empowerment. The findings suggest that such measures enhance intrinsic motivation, reduce stress, and increase job satisfaction, organizational commitment, and innovation behavior. Moreover, psychological empowerment is shown to correlate with improved physical and mental health outcomes, lower turnover intentions, and greater discretionary effort. The study concludes that psychological empowerment provides a valuable framework to assess and guide the implementation of New Work initiatives. It encourages organizations to consciously design and evaluate such measures with a focus on employees’ subjective experience. Future research should explore implementation strategies and tools for embedding empowerment in corporate culture to address the challenges of Work 4.0 effectively.