Setyowati Subroto, Alifah Lettiane Virainy Lubis, Mohammad Gifari Sono

The Effect of Work-Life Balance and Work Environment on Employee Performance with Job Satisfaction as a Mediating Variable

Introduction

The effect of work-life balance and work environment on employee performance with job satisfaction as a mediating variable. This study examines how work-life balance & environment impact employee performance, with job satisfaction as a key mediator. Discover drivers for organizational success.

Abstract

This study examines the effect of work-life balance and work environment on employee performance with job satisfaction as an intermediary variable. Using a quantitative approach, data were collected from 180 employees through a structured questionnaire measured on a five-point Likert scale. Data analysis was conducted using Structural Equation Modeling–Partial Least Squares (SEM-PLS 3). The results reveal that work-life balance and work environment both have significant positive effects on job satisfaction, with the work environment showing the stronger influence. Job satisfaction, in turn, has a very strong positive effect on employee performance. Mediation analysis confirms that job satisfaction fully mediates the effect of work environment on performance and partially mediates the effect of work-life balance on performance. These findings suggest that organizational performance can be improved by creating a supportive work environment and promoting work-life balance, with job satisfaction serving as the key mechanism that drives employee productivity.

Review

This study meticulously investigates the complex interplay between work-life balance (WLB), work environment (WE), and employee performance (EP), positing job satisfaction (JS) as a crucial mediating variable. Adopting a quantitative research approach, the authors collected data from 180 employees using structured questionnaires measured on a five-point Likert scale. The application of Structural Equation Modeling–Partial Least Squares (SEM-PLS 3) for data analysis is a robust choice for examining the direct and indirect relationships proposed, providing a solid methodological foundation for the research questions. The findings offer significant insights into the dynamics of employee motivation and productivity. The study reveals that both work-life balance and work environment positively and significantly influence job satisfaction, with the work environment demonstrating a notably stronger effect. Critically, job satisfaction itself emerged as a very strong positive predictor of employee performance. The mediation analysis further refines these understandings: job satisfaction was found to fully mediate the effect of the work environment on performance, and partially mediate the effect of work-life balance on performance, thereby clarifying the mechanisms through which these factors impact employee output. These results carry substantial practical implications for organizations striving to enhance their workforce's effectiveness. The research strongly suggests that investing in a supportive work environment and promoting work-life balance are key strategies, with job satisfaction serving as the fundamental conduit that translates these efforts into improved employee productivity. This study makes a valuable contribution to human resource management literature by empirically validating the pivotal mediating role of job satisfaction, offering clear and actionable recommendations for managers and policymakers aiming to foster a more satisfied and higher-performing workforce.

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