Introduction: Decent work is recognised as a key factor in fostering both individual and collective well-being. However, the psychological mechanisms by which decent work leads to broader life satisfaction are still not fully understood. Psychological safety, defined as a shared belief that one's work environment is safe for interpersonal risk-taking, may serve as one pathway, especially in mission-driven settings such as the third sector.
Purpose: To examine a mediation model in which psychological safety mediates the relationship between decent work and overall life satisfaction among employees of Portuguese third-sector organisations.
Method: A cross-sectional survey was conducted with 116 workers from nonprofit and social-economy organisations in Portugal. Participants completed validated measures of decent work, psychological safety, and overall life satisfaction. Data were analysed using the PROCESS macro (Model 4) with bootstrapped confidence intervals to examine mediation.
Results: The direct effect of decent work on overall life satisfaction was positive and statistically significant. The indirect impact of decent work on life satisfaction through psychological safety was also significant, indicating partial mediation. The fully standardised indirect effect showed a meaningful effect size for the mediational pathway.
Conclusions: The data support a partial mediation model whereby decent work has both a direct effect on life satisfaction and an indirect effect through psychological safety. Therefore, decent work is essential for boosting psychological safety, which subsequently enhances individuals' overall life satisfaction. Investing in decent work is crucial for third-sector organisations. Furthermore, its connection with psychological safety and employee well-being enhances its importance, as organisations with these characteristics are likely to be more sustainable.