The Relationship Between Psychological Capital, Job Performance, and Job Satisfaction

April 23, 2019

What is Psychological Capital?


Psychological capital is an individuals psychological state and relationship to development that is demonstrated by having the confidence to engage with and succeed at challenging tasks (efficacy), having positive attributions about success in the present and future (optimism), perseverance and flexibility in goal achievement and success (hope), and recovering from and overcoming adversity to achieve success (resilience) (Luthans et al., 2015).

In short, psychological capital is the amount of energy, confidence, and drive you towards growth, development, and success.

As such, psychological capital has been shown in various studies to act as a predictor of job performance (Avery et al., 2010; Luthans et al., 2007; Peterson & Byron, 2007). Similarly, many studies have found that a positive correlation exists between psychological capital and job satisfaction (Jung & Yoon, 2015; Youseff & Luthans, 2007; Mello, 2012). And, a significant relationship exists between job performance and job satisfaction (Muhammad, 2015; Ryan, 2012; Chamundeswari & Hallberg, 2013; Peng, 2012). Finally, Durrah, Alhamoud, and Khan (2016), in their study of 110 instructors at Philadelphia University found that job satisfaction mediates the relationship between psychological capital and job performance. Thus, the higher level of job satisfaction an individual experiences’, the better their performance will be and the higher their psychological capital will be. Inversely, the lower level of job satisfaction an individual experiences’, the lower their performance and psychological capital.

As such, we are left with the question of: How do we improve job satisfaction? 


You will find hundreds, if not thousands, of articles out there providing tips, tricks, and strategies to improve job satisfaction, because it is a hot-button issue and very important for employees and employers alike. Yet, with all those options it can be hard to decide where you would want to start.

My suggestion – start with something that is within your realm of control – self-exploration and career exploration, also known as career planning.

Adekola (2011) completed a study of 505 employees that highlighted the positive relationship between career planning and development and career satisfaction. Furthermore, it was highlighted that career planning has a much stronger positive relationship with career development and career satisfaction then career management and career development and career satisfaction. Consequently, a focus on growth, development, and success in the career planning process can truly lead to greater career satisfaction, career performance, and psychological capital.



Article by Aaron Telnes
Registered Provisional Psychologist
Calgary Career Counselling


Disclaimer: images were taken from


Additional Years

What Can Career Counselling Do?

Career counselling with a Registered Psychologist or Career Coach is an excellent way to make career decisions and find a fulfilling career direction. The process of career counselling includes personality, interest and values assessments, and coaching sessions to ensure you find the right career path for you. All career counsellors at Calgary Career Counselling are Master’s- and Ph.D.-level Psychologists and Career Coaches with extensive experience helping people reach their full potential. We’re a private organization offering fee-based services, but many extended health plans cover Registered Psychologists.

Contact Us

Calgary Career Counselling Office:
Suite 305 - 1167 Kensington CR NW
Calgary, Alberta T2N 1X7
(403) 261-5085

News & Events

developed by: Mario Concina

Calgary Career Counselling
  • 19/08/2019
    The early bird gets the worm, and paid more money:read more »

  • 16/08/2019
    After your resume gets through an ATS, action words help hiring managers scan your information and make quick decisions about you and your eread more »

Follow us on Facebook

developed by: Mario Concina

Ready to Connect the Pieces?

Call 403.261.5085

© Copyright Calgary Career Counselling 2019