Do firms implement work–life balance policies to benefit their workers or themselves?

Abstract

The purpose of this article is to enhance scholars' understanding of work-life balance (WLB) policies in small and medium enterprises (SMEs). The study explores whether SMEs display a common pattern of behavior when implementing WLB policies. The benefits of implementing WLB policies either improve conditions for the workers themselves or improve the firm's productivity. Empirical evidence on the effects of WLB, however, is scarce. This empirical study uses fuzzy-set qualitative comparative analysis (fsQCA). Findings fail to show an association between a particular combination of factors and the implementation of WLB policies. Nevertheless, the firm's decision to implement WLB policies depends on how the firm perceives the benefits of such policies. If the firm fails to perceive organizational performance benefits, the firm will not implement WLB policies. This finding leads to two conclusions: first, potential market-based benefits represent the main factor determining whether the firm will implement WLB policies. Second, a greater degree of perceived benefits (organizational performance) makes the implementation of WLB policies more attractive to human resources managers.