The Effect of Work Life Balance and Compensation on Employee Performance with Job Satisfaction as a Mediating Variable in Gen Z Employees

Sri Katrina Bangnga Lestari; Aula Ahmad Hafidh Saiful  Fikri

doi:10.55927/fjsr.v3i12.12793

Authors

Sri Katrina Bangnga Lestari Yogyakarta State University
Aula Ahmad Hafidh Saiful Fikri Yogyakarta State University

DOI:

https://doi.org/10.55927/fjsr.v3i12.12793

Keywords:

Work Life Balance, Compensation, Job Satisfaction, Employee Performance

Abstract

This study examines the impact of work-life balance and compensation on employee performance among Generation Z employees at Bento Kopi Yogyakarta, using job satisfaction as a mediating variable. Employing a descriptive quantitative approach with purposive sampling of 150 employees, the research utilized Partial Least Square (PLS) analysis through SmartPLS 3 software. Findings reveal positive significant relationships: work-life balance and compensation positively influence job satisfaction, which in turn significantly affects employee performance. The study demonstrates partial mediation of job satisfaction between work-life balance and compensation with employee performance, providing insights into workforce dynamics for Generation Z

Downloads

Download data is not yet available.

References

Alkandi, I. G., Khan, M. A., Fallatah, M., Alabdulhadi, A., Alanizan, S., & Alharbi, J. (2023). The Impact of Incentive and Reward Systems on Employee Performance in the Saudi Primary, Secondary, and Tertiary Industrial Sectors: A Mediating Influence of Employee Job Satisfaction. Sustainability (Switzerland), 15(4). https://doi.org/10.3390/su15043415

Amabile, T. M., Schatzel, E. A., Moneta, G. B., & Kramer, S. J. (2004). Leader behaviors and the work environment for creativity: Perceived leader support. Leadership Quarterly, 15(1), 5–32. https://doi.org/10.1016/j.leaqua.2003.12.003

Anwar, S., & Ikratullah, M. I. (2022). Compensation of the Influence and Motivation of Work on Employee Performance with Job Satisfaction as a Mediating Variable in Ninja Xpress MSH Padang. BINA BANGSA INTERNATIONAL JOURNAL OF BUSINESS AND MANAGEMENT, 2(2), 413–423. https://doi.org/10.46306/bbijbm.v2i2.67

Armstrong, M. (2006). Human Resource Management Practice (10th ed.). Kogan Page Limited.

Aruldoss, A., Kowalski, K. B., & Parayitam, S. (2021). The relationship between quality of work life and work life balancemediating role of job stress, job satisfaction and job commitment: evidence from India. Journal of Advances in Management Research, 18(1), 36–62. https://doi.org/10.1108/JAMR-05-2020-0082

Bagaskoro, A., Fathomi, A., & Warso. (2016). Effect of Compensation And Team Work Through The Performance of Employees Job Satisfaction Asan Intervening Variable. International Journal of Contemporary, 02(02).

Bhatia, K. (2009). Compensation management. Global Media.

Blau, P. M. (1964). Exchange and Power in Social Life (J. Wiley & I. . Sons (eds.)). United States of America .

Boy, Y., & Sürmeli, M. (2023). Quiet quitting : A significant risk for global healthcare. 13, 1–4. https://doi.org/10.7189/jogh.13.03014

Chen, Z. X., Aryee, S., & Lee, C. (2005). Test of a mediation model of perceived organizational support. Journal of Vocational Behavior, 66(3), 457–470. https://doi.org/10.1016/j.jvb.2004.01.001

Coyle-Shapiro, J. A. M., & Shore, L. M. (2007). The employee-organization relationship: Where do we go from here? Human Resource Management Review, 17(2), 166–179. https://doi.org/10.1016/j.hrmr.2007.03.008

Darvishmotevali, M., & Ali, F. (2020). Job insecurity, subjective well-being and job performance: The moderating role of psychological capital. International Journal of Hospitality Management, 87. https://doi.org/10.1016/j.ijhm.2020.102462

Dessler, G. (2020). Human resource management (Neeraj Bhalla & Kerri Tomasso (eds.); 16th ed.). Pearson Education.

Fisher, G. G., Tetrick, L. E., & Quick, J. C. (2023). Occupational Health Psychology (3rd ed.). American Psychological Association.

Formica, S., & Sfodera, F. (2022). The Great Resignation and Quiet Quitting paradigm shifts: An overview of current situation and future research directions. Journal of Hospitality Marketing and Management, 31(8), 899–907. https://doi.org/10.1080/19368623.2022.2136601

Fulmer, I. S., Gerhart, B., & Kim, J. H. (2023). Compensation and performance: A review and recommendations for the future. Personnel Psychology, 76(2), 687–718. https://doi.org/10.1111/peps.12583

Gilli, K., Veglio, V., Gunkel, M., & Taras, V. (2022). In search of the Holy Grail in global virtual teams: The mediating role of satisfaction on performance outcomes. Journal of Business Research, 146(June 2021), 325–337. https://doi.org/10.1016/j.jbusres.2022.03.056

Gouldner, A. W. (1960). The Norm of Reciprocity: A Preliminary Statement.

Griffin, R. W., Phillips, J., & Gully, S. M. (2019). Organizational Behavior : Managing People and Organizations (13th ed.). Nelson Education, Ltd.

Hair, J. F. H., Ringle, C. M., Danks, N. P., Hult, G. T. M., Sarstedt, M., & Ray, S. (2017). A Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd ed.). Sage Publications Limited Inc. http://www.

Hardiantoro, A., & Hardiyanto, S. (2022). Mengenal Fenomena Quiet Quitting yang Sedang Tren di Dunia Kerja. Kompas.Com. https://www.kompas.com/tren/read/2022/08/31/200500965/mengenal-fenomena-quiet-quitting-yang-sedang-tren-di-dunia-kerja?page=all#:~:text=Fenomena quiet quitting memberikan dampak baik bagi perusahaan,2022 jika dibandingkan periode yang sama tahun lalu.

Hasan, T., Jawaad, M., & Butt, I. (2021). The influence of person–job fit, work–life balance, and work conditions on organizational commitment: Investigating the mediation of job satisfaction in the private sector of the emerging market. Sustainability (Switzerland), 13(12). https://doi.org/10.3390/su13126622

Hee, O. C., Yan, L. H., Rizal, A. M., Kowang, T. O., & Fei, G. C. (2018). Factors Influencing Employee Job Satisfaction: A Conceptual Analysis. International Journal of Academic Research in Business and Social Sciences, 8(6). https://doi.org/10.6007/ijarbss/v8-i6/4207

Hermina, U. N., & Yosepha, S. Y. (2019). THE MODEL OF EMPLOYEE PERFORMANCE. International Review of Management and Marketing, 9(3), 69–73. https://doi.org/10.32479/irmm.8025

Idris, Adi, K. R., Soetjipto, B. E., & Supriyanto, A. S. (2020). The mediating role of job satisfaction on compensation, work environment, and employee performance: Evidence from Indonesia. Entrepreneurship and Sustainability Issues, 8(2), 735–750. https://doi.org/10.9770/jesi.2020.8.2(44)

Ingsih, K., Budiantoro, R. A., Hasanatina, F. H., & Ali, S. (2022). Work-life Balance and Compensation on Performance with Job Satisfaction as an Intervening Variable for Millennial Generation Banking Employees. Jurnal Manajemen Bisnis, 13(2), 255–276. https://doi.org/10.18196/mb.v13i2.13947

Irawanto, D. W., Novianti, K. R., & Roz, K. (2021). Work from home: Measuring satisfaction between work–life balance and work stress during the covid-19 pandemic in indonesia. Economies, 9(3). https://doi.org/10.3390/economies9030096

Irfan, M., Khalid, R. A., Kaka Khel, S. S. U. H., Maqsoom, A., & Sherani, I. K. (2021). Impact of work–life balance with the role of organizational support and job burnout on project performance. Engineering, Construction and Architectural Management, 30(1), 154–171. https://doi.org/10.1108/ECAM-04-2021-0316

Jayadi, D. H. (2020). Sensus Penduduk 2020: Penduduk Indonesia Didominasi Gen Z dan Milenial. Databoks.Katadata.Co.Id. https://databoks.katadata.co.id/datapublish/2021/01/22/sensus-penduduk-2020-penduduk-indonesia-didominasi-gen-z-dan-milenial

Jayaraman, S., George, H. J., Siluvaimuthu, M., & Parayitam, S. (2023). Quality of Work Life as a Precursor to Work–Life Balance: Collegiality and Job Security as Moderators and Job Satisfaction as a Mediator. Sustainability (Switzerland), 15(13). https://doi.org/10.3390/su15139936

Kanapathippillai, S., Gul, F., Mihret, D., & Muttakin, M. B. (2019). Compensation committees, CEO pay and firm performance. Pacific Basin Finance Journal, 57. https://doi.org/10.1016/j.pacfin.2019.101187

Karaferis, D., Aletras, V., & Niakas, D. (2022). Determining dimensions of job satisfaction in healthcare using factor analysis. BMC Psychology, 10(1). https://doi.org/10.1186/s40359-022-00941-2

Kim, H. S., & Jang, S. C. (Shawn). (2020). The effect of increasing employee compensation on firm performance: Evidence from the restaurant industry. International Journal of Hospitality Management, 88. https://doi.org/10.1016/j.ijhm.2020.102513

Kompas.com. (2021). Ini Pentingnya Menjaga Work-Life Balance bagi Karyawan. Kompas.Com. https://biz.kompas.com/read/2021/12/22/100351528/ini-pentingnya-menjaga-work-life-balance-bagi-karyawan

Kompasiana. (2024). Memahami Fenomena Quiet Quitting: Perubahan Paradigma Kerja di Kalangan Milenial dan Gen Z. Kompasiana.Com. https://www.kompasiana.com/jandris_sky/6720edd0ed64155dec175492/memahami-fenomena-quiet-quitting-perubahan-paradigma-kerja-di-kalangan-milenial-dan-gen-z

Kowalski, K. B., Aruldoss, A., Gurumurthy, B., & Parayitam, S. (2022). Work-From-Home Productivity and Job Satisfaction: A Double-Layered Moderated Mediation Model. Sustainability (Switzerland), 14(18). https://doi.org/10.3390/su141811179

Lee, L.-Y., & Veasna, S. (2013). The Effects of Social Exchange Perspective on Employee Creativity: A Multilevel Investigation.

Mathis, R. L., Jackson John H, Valentine, S. R., & Meglich, P. A. (2017). Human Resource Management (15th ed.). Nelson Education, Ltd. www.cengage.com/highered

Nabilah, A., Ronardi, S., Shakira Azzahra, Q., Maharani, F., Rodiah, S., & Muhammadiyah Riau Jl Tuanku Tambusai, U. (2023). Transaksi Derivatif Lindung Nilai (Hedging) Pada Perusahaan Manufaktur (Studi Kasus PT Japfa Comfeed Indonesia Tbk Dan PT Hanjaya Mandala Sampoerna Tbk). Jurnal Riset Ilmu Akuntansi, 2(3), 67–75. https://doi.org/10.55606/akuntansi.v2i3.330

Nazneen, A. (2023). A Study Work Life Balance and Employee Engagement among Female Medical Professionals in Kingdom of Saudi Arabia. WSEAS Transactions on Business and Economics, 20, 1997–2008. https://doi.org/10.37394/23207.2023.20.174

Ohunakin, F., & Olugbade, O. A. (2022). Do employees’ perceived compensation system influence turnover intentions and job performance? The role of communication satisfaction as a moderator. Tourism Management Perspectives, 42. https://doi.org/10.1016/j.tmp.2022.100970

Pramudena, S. M., Saluy, A. B., & Muhith, A. (2021). The Effect of Work Motivation and Compensation on the Non-State Employees’ Work Performance with Work Satisfaction as Intervening Variables at the National Land Agency, the Regency of Bekasi. Journal of Economics and Business, 4(2). https://doi.org/10.31014/aior.1992.04.02.361

Rawshdeh, Z., Mohd Makhbul, Z., Ullah Shah, N., & Susanto, P. (2019). Impact of Perceived Socially Responsible-HRM Practices on Employee Deviance Behavior. International Journal of Business and Management Science. https://www.researchgate.net/publication/343318413

Rodrigo, J. A. H. N., Kuruppu, C. L., & Pathirana, G. Y. (2022). The Impact of Job Satisfaction on Employee Performance: A Case at ABC Manufacturing Company. Asian Journal of Economics, Business and Accounting, 1–9. https://doi.org/10.9734/ajeba/2022/v22i230541

Susanto, P., Hoque, M. E., Jannat, T., Emely, B., Zona, M. A., & Islam, M. A. (2022). Work-Life Balance, Job Satisfaction, and Job Performance of SMEs Employees: The Moderating Role of Family-Supportive Supervisor Behaviors. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.906876

Talukder, A. K. M., Vickers, M., & Khan, A. (2018). Supervisor support and work-life balance: Impacts on job performance in the Australian financial sector. Personnel Review, 47(3), 727–744. https://doi.org/10.1108/PR-12-2016-0314

Thao, L. T. T., & Hwang, C. J. (2010). Factors Affecting Employee Performance-Evidence From Petrovietnam Engineering Consultancy J.S.C.

Udin, U. (2023). The Impact of Work-Life Balance on Employee Performance: Mediating Role of Affective Commitment and Job Satisfaction. International Journal of Sustainable Development and Planning, 18(11), 3649–3655. https://doi.org/10.18280/ijsdp.181131

Watto, W. A., Fahlevi, M., Mehmood, S., Asdullah, M. A., & Juhandi, N. (2023). Executive compensation: A justified reward or a mis-fortune, an empirical analysis of banks in Pakistan. Journal of Open Innovation: Technology, Market, and Complexity, 9(3). https://doi.org/10.1016/j.joitmc.2023.100092

Wong, K., Chan, A. H. S., & Teh, P. L. (2020). How is work–life balance arrangement associated with organisational performance? A meta-analysis. International Journal of Environmental Research and Public Health, 17(12), 1–19. https://doi.org/10.3390/ijerph17124446

Zayed, N. M., Rashid, M. M., Darwish, S., Faisal-E-alam, M., Nitsenko, V., & Anwarul Islam, K. M. (2022). The Power of Compensation System (CS) on Employee Satisfaction (ES): The Mediating Role of Employee Motivation (EM). Economies, 10(11). https://doi.org/10.3390/economies10110290

Znidaršič, J., & Marič, M. (2021). Relationships between Work-Family Balance, Job Satisfaction, Life Satisfaction and Work Engagement among Higher Education Lecturers. Organizacija, 54(3), 227–237. https://doi.org/10.2478/orga-2021-0015