Work-life Balance and Compensation on Performance with Job Satisfaction as an Intervening Variable for Millennial Generation Banking Employees

Abstract

Research aims: The research aims to determine the effect of work-life balance and compensation on performance with job satisfaction as a variable intervening of millennial generation banking employees in Semarang City.Design/Methodology/Approach: This research design is quantitative. This study’s primary data was obtained by distributing questionnaires to millennial-generation banking employees. The study was conducted for one month. Hypothesis testing in this study used the SEM-STATA method.Research findings: With the object of research being the millennial generation working in the banking industry in Semarang City, compensation and work-life balance positively correlated with employee performance. The results also confirmed the role of the intervening variable, job satisfaction, in the relationship between work-life balance and compensation on employee performance. Theoretical contribution/Originality: The findings supported the existing theories (Spillover Theory, Enrichment Theory, and Equity Theory).Practitioner/Policy implication: For banking companies to pay attention to employee well-being because compensation will satisfy and motivate employees and improve work performance. It is also reasonable for the company to provide job satisfaction to employees to improve employee performance. To enhance the performance of banking employees for the millennial generation in the future through increasing programs that support employees to harmonize their personal lives and work activities to have a relationship with employees’ job satisfaction.Research limitation/Implication: The subject is limited to Millennial Generation and does not capture other generations, such as Baby Boomer and Generation X. It would be better if future researchers could analyze the different characteristics and personalities in the workplace. This paper also only tested the model by Millennial Generation who work in the banking industry in the Semarang City area. It cannot be generalized to other sectors and regions.

The Role of Job Satisfaction as Mediation on the Influence of Work Life Balance and Training on Job Performance

“…According to Robbins & Judge [12], employees who feel satisfied with their life at work tend to show higher levels of productivity. This is supported by the findings of Ingsih, et al [5] and Susanto, et al [6] that there is an influence between job satisfaction and performance. Therefore, the following proposition has been developed:…”

“…Victoria, et al [28] found that satisfaction at work can be obtained when an employee feels satisfaction and success in his family life. This is supported by the findings of Ingsih et al [5] and Mercado [29] that there is an influence between work-life balance and job satisfaction. Therefore, the following proposition has been developed:…”

“…Naithani; Susanto, et al [6] argues that if an organization ignores the work-life balance of its employees, it will have an impact on organizational productivity and employee performance. This is supported by the findings of Ingsih, et al [5] and Bataineh [14] that work-life balance influences performance. Therefore, the following proposition has been developed:…”

“…If this balance is not achieved, tensions will arise across all responsibilities, and work effectiveness may be compromised. Research by Ingsih, et al [5] and Susanto, et al [6], found that work-life balance has an influence on performance, but this is contrary to the findings of Herlambang and Murniningsih [7], where work-life balance has no influence on performance.…”

“…Job satisfaction has a moderate correlation with performance; employees who are satisfied with their jobs will be better able to perform the duties listed in their job descriptions [13]. This is supported by the findings of Abbas, et al [10] and Ingsih, et al [5] which show that job satisfaction has an effect on performance, but this is contrary to Bataineh's [14] findings where job satisfaction has no effect on performance. In this study, job satisfaction was also used as mediation.…”