The Impact of Work-Balance on Employee Performance Mediated by Employee Loyalty (Lessons from Female Employees Working in International Environment in Greater Jakarta, Indonesia)

Abstract

The roles of women have been more recognized as vital within organizations or companies. Companies that have more women in managerial positions have been able to handle risks more effectively; to do better in managing relationship with customers, employees, shareholders and local communities. However, female employees have to overcome the challenges of balancing multiple responsibilities at work and personal life which expose them to stress at work which may affect their performance as employees. Hence, this study aims to investigate the impact of work-life balance on employee performance mediated by employee loyalty in the context of female employees working in international environment in greater Jakarta, Indonesia. This study applies quantitative approach with a total of 100 female employees working in international environment, including United Nations Agencies, Multinational Companies, Embassies, International Non-Governmental Organizations and Donor Agencies using statistical analysis method through Partial Least Square (PLS) Structural Equation Modeling (SEM). The findings of the study show that work-life balance has positive impact on employee loyalty and employee performance; and employee loyalty has positive impact on employee performance. This study fills in the research gaps and expands the knowledge on human resource strategy on applying work-life balance to specifically improve female employees’ loyalty and performance. The findings also give further insights for effective human resource strategy and policy to enhance female employee loyalty and performance in a company or organization.