Employee Productivity in the Flexible Work Era: An Analysis of the Influence of Work-Life Balance on Individual Performance

Sugito Sugito; Aryani Sairun; Anto Tulim; Rayu Sri Wahyuni; Purnaya Sari Tarigan; Pioner Pelawi

Authors

Sugito Sugito University of Medan Area, Medan, Indonesia
Aryani Sairun University of Battuta, Medan, Indonesia
Anto Tulim University of Mikroskil, Medan, Indonesia
Rayu Sri Wahyuni University of Mikroskil, Medan, Indonesia
Purnaya Sari Tarigan University of Mikroskil, Medan, Indonesia
Pioner Pelawi University of Mikroskil, Medan, Indonesia

Keywords:

Employee Productivity, Individual Performance, Mediation, SEM-PLS, Work-Life Balance.

Abstract

The increasing adoption of flexible work arrangements has highlighted the importance of maintaining a balance between employees' professional and personal lives to enhance organizational performance. This study aims to examine the effect of Work-Life Balance on Individual Performance, with Employee Productivity serving as a mediating variable. A quantitative explanatory research design was employed using a census sampling technique involving 60 employees. Data were collected through a structured questionnaire based on a five-point Likert scale and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 4 software. The findings reveal that Work-Life Balance has a positive and significant effect on Employee Productivity (β = 0.652; p < 0.001), Employee Productivity has a positive and significant effect on Individual Performance (β = 0.598; p < 0.001), and Work-Life Balance also has a direct positive and significant effect on Individual Performance (β = 0.417; p < 0.001). Furthermore, Employee Productivity partially mediates the relationship between Work-Life Balance and Individual Performance (β = 0.390; p < 0.001). These findings indicate that improving employees' work-life balance can enhance both productivity and individual performance, directly and indirectly through increased productivity. Therefore, organizations should implement policies that promote work-life balance to improve employee performance and support sustainable organizational success.

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