The Effect of Work Life Balance and Compensation on Employee Performance through Employee Engagement as Intervening Variable (Study on Married Women Employees that Have Children in the Production Section of PT Sukuntex Spinning)

Abstract

PT Sukuntex is a manufacturing company in Indonesia that is in charge of the textile industry. The problem faced is the fluctuation in the decline in target achievement in 2018-2021. Until 2021, the number of realizations cannot achieve the targets set by the company. Work-life balance, compensation, and employee engagement are variables that can affect employee performance. This study aims to determine the effect of work-life balance and compensation on employee engagement through employee engagement at PT Sukuntex-Spinning. The number of samples is 100 female employees who are married and have children from the production division of PT Sukuntex-Spinning. The data analysis technique uses a Structural Equation Model based on Partial Least Square (SEM PLS). The results of the study support the theory of organizational behavior where individual behavior like work-life balance, acceptance of compensation, and employee engagement can improve employee performance. This study concludes work-life balance and compensation have a positive and significant effect on employee performance through employee engagement. The recommendation for the company is to hold a joint event between employees and their families. Companies also need to provide regular training to improve the quality of employees. In addition, the company can give praise or appreciation for every employee’s progress in work.