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The new ways of working (NWW), a contemporary work environment with temporal and spatial flexibilities, has become an enforced reality after the COVID-19 pandemic disrupted workplaces. However, the understanding of how it impacts employee well-being perceptions is limited. Hence, the current study aims to examine how the NWW facets, namely, time- and location-independent work, management of output, access to organizational knowledge and flexibility in working relations relate to employees' life satisfaction, mediated by psychological capital.

A cross-sectional survey was designed to collect data from 459 Indian knowledge workers. Model fit and the hypothesized relationships were tested using IBM SPSS 25, AMOS and PROCESS Macro.

All four NWW facets positively relate to psychological capital, which in turn associates with life satisfaction. Except for the facet “management of output”, the other three facets associate positively with life satisfaction before accounting for the mediator. Indirect effects of all four facets on life satisfaction via psychological capital were established. Overall, the findings establish the important mediating role of psychological capital in relating the NWW facets with life satisfaction.

By examining the previously unexplored relationships between NWW, psychological capital and life satisfaction, this study provides novel insights into the role of personal resources in maximizing the beneficial effects of the NWW practices and is highly relevant in the current context where organizations are trying to identify coping mechanisms that help employees adapt to workplace transformations.