Home⇛Psychology and Education: A Multidisciplinary Journal⇛vol. 45 no. 5 (2025)

Green Flags at Work: Influence of a Healthy Workplace on Employee Retention and Well-Being

Jiomarie Jesus | Evelyn Navares | Mary Ann G. Salazar | Jhoronnie Gayl Bontes | Jeffy Sumilhig | Marciano Abiera

Discipline: others in psychology

 

Abstract:

In response to the rising incidence of burnout and employee turnover, this study examined the influence of healthy workplace practices—conceptualized as "green flags"—on employee well-being and retention intentions. These green flags included quality of life support, work-life boundary practices, mental health accommodation, psychological safety, and recognition. Grounded in the Conservation of Resources theory, a quantitative descriptive-correlational design was employed using structured surveys administered to 500 full-time employees across five industry sectors in Metro Cebu, Philippines. Stratified random sampling ensured sectoral representation. The study applied descriptive statistics, Pearson correlation, multiple regression, and structural equation modeling (SEM) for data analysis. Results revealed high perceptions of healthy workplace practices, with mean scores ranging from 3.98 (SD = 0.74) to 4.21 (SD = 0.63). Employee well-being (M = 4.12, SD = 0.69) and retention intentions (M = 3.87, SD = 0.78) were also rated favorably. Correlation analyses revealed significant positive relationships between all green flag indicators and outcome variables, with psychological safety (r = 0.65, p < 0.001) and recognition (r = 0.64, p < 0.001) exhibiting the strongest associations. Multiple regression confirmed psychological safety (β = 0.30, p < .001) and recognition (β = 0.24, p < .001) as the most influential predictors of well-being, while recognition (β = 0.33, p < .001) and psychological safety (β = 0.28, p < .001) most strongly predicted retention intentions. SEM demonstrated excellent model fit (CFI = 0.96, TLI = 0.95, RMSEA = 0.041, SRMR = 0.038), validating the theoretical framework. The study concluded that healthy workplace practices were not merely cultural ideals but measurable strategic functions that enhanced employee retention and psychological wellness. The validated green flag model offered a replicable structure for embedding employee-centered policies into organizational strategy, particularly in service-oriented and high-turnover industries.



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