HYBRID WORK ARRANGEMENTS AND EMPLOYEE PRODUCTIVITY: THE MEDIATING ROLE OF WORK ENGAGEMENT AND THE MODERATING EFFECT OF DIGITAL COMPETENCY

Author: Malaysia

Abstract

The rapid proliferation of hybrid work arrangements following the COVID-19 pandemic has fundamentally transformed organizational dynamics and raised critical questions about employee productivity. This study examines the influence of hybrid work arrangements on employee productivity, with work engagement as a mediating variable and digital competency as a moderating variable. A quantitative research design was employed using a cross-sectional survey approach, with data collected from 320 employees in Malaysian organisations that had implemented formal hybrid work policies. Data were analysed using IBM SPSS Statistics version 28 through a series of descriptive statistics, reliability analysis, Pearson correlation analysis, hierarchical multiple regression, and Baron and Kenny's (1986) mediation procedure complemented by the PROCESS macro (Hayes, 2018) for moderated mediation analysis. The findings confirmed that hybrid work arrangements positively and significantly predict employee productivity (β = .412, p < .001). Work engagement was confirmed as a significant partial mediator (indirect effect = .187, 95% Boot CI [.119, .261]), while digital competency significantly moderated the effect of hybrid work arrangements on work engagement (β = .231, p < .001). These results suggest that organisations seeking to maximise the benefits of hybrid work must invest in cultivating robust digital competencies and fostering meaningful work engagement among their workforce. Theoretical and practical implications for human resource management in the Malaysian context are discussed.