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JOB SATISFACTION AND EMPLOYEE PERFORMANCE: A THEORETICAL REVIEW OF THE RELATIONSHIP BETWEEN THE TWO VARIABLES

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In today's increasing competitive environment, organizations recognize the internal human element as a fundamental source of improvement. On one hand, managers are concentrating on employees' wellbeing, wants, needs, personal goals and desires, to understand the job satisfaction. And on the other hand, managers take organizational decisions based on the employees' performance. The purpose of this study is to identify the factors influencing job satisfaction and the determinants of employee performance, and accordingly reviewing the relationship between them. This study is an interpretivist research that focuses on exploring the influence of job satisfaction on employee performance and vice, the influence of employee performance on job satisfaction. The study also examines the nature of the relationship between these two variables. The study reveals the dual direction of the relationship that composes a cycle cause and effect relationship, so satisfaction leads to performance and performance leads to satisfaction through number of mediating factors. Successful organizations are those who apply periodic satisfaction and performance measurement tests to track the level of these important variables and set the corrective actions.

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Correlation between Employee Performance, Well-Being, Job Satisfaction, and Life Satisfaction in Sedentary Jobs in Slovenian Enterprises

Zinka kosec.

1 Faculty of Sport, University of Ljubljana, 1000 Ljubljana, Slovenia

Stella Sekulic

2 Dental Division, Faculty of Medicine, University of Ljubljana, 1000 Ljubljana, Slovenia

3 National Institute for Public Health, 1000 Ljubljana, Slovenia

Susan Wilson-Gahan

4 Faculty of Business, Education, Law and Arts, University of Southern Queensland, Springfield Central 4300, Australia

Katja Rostohar

Matej tusak, associated data.

The data reported in this study are available on request from the corresponding author upon reasonable request. The data are not publicly available due to its proprietary nature.

The purpose of this study was to explore the relationship between employees’ work performance and their well-being, job satisfaction, and life satisfaction in sedentary jobs in Slovenian enterprises using a mixed-methods research design. The quantitative component of the research included the responses to four selected questionnaires of 120 employees in 22 identified enterprises (out of 81), with more than 20 employees, having more than 85 percent sedentary jobs. Each of four questionnaires was chosen to cover one area of enquiry under the research foci of work performance, job satisfaction, life satisfaction and well-being. The statistical program STATA was used for data analyses. The analysis shows statistically significant positive correlations between employee performance and job satisfaction (r = 0.35), employee performance and life satisfaction (r = 0.28), life satisfaction and well-being (r = 0.33), and job satisfaction and well-being, whereas the correlation between well-being and work performance did not prove to be statistically significant. The qualitative component of the mixed-methods research design included systematic observation combined with one-to-one discussions. The results indicated that job satisfaction and life satisfaction are more significant in determining work performance in sedentary jobs than employee well-being and that being unwell is still considered a sign of weakness; therefore, employees who are unwell do not want to expose themselves and refuse to cooperate in activities and studies about well-being. Further research examining the impact on work performance of organizational climate measurements in sedentary jobs is recommended.

1. Introduction

A person’s patterns of thinking and feelings are affected by internal and external environments in their life, including their profession and work conditions as some of the most important factors [ 1 ], which in turn have a negative impact on their lifestyle and work performance. Employers should be aware of the many factors that influence work environment, job and life satisfaction, well-being, and mental health, especially in sedentary jobs, since sedentary behavior has become a significant health issue in a post-industrialized world [ 1 , 2 , 3 ] and part of the dissatisfying lifestyle of many employees. Workplace environments are target settings for introducing processes of intervention to reduce sedentary behavior [ 1 , 2 , 3 , 4 ]. Different approaches designed to implement employees’ greater range of motion and standing during work hours have come to the fore [ 5 , 6 , 7 , 8 , 9 , 10 ]. Standing desks or desks that can accommodate standing or sitting have been introduced into work environments. Many companies provide different programs and equipment for their employees, active breaks during work hours, and policies about taking a break from the screen [ 3 ], which is especially recommended for older employees [ 5 , 6 , 7 , 8 , 9 , 10 ]. There is a lot of evidence that sedentary behavior influences the quality of life [ 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 ] and productivity [ 11 ]. Several studies have found that prolonged sitting time leads to cognitive impairment [ 10 ], mobility limitation [ 8 ], increased risk of mortality [ 12 ], and reduced quality of life in general [ 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 ].

Many companies have been trying to gain a sustainable competitive advantage by improving the effectiveness of work engagement interventions [ 13 ]. Work engagement, i.e., work performance, refers to a positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, and absorption [ 14 ]. Work performance is defined as the total expected value to the organization of discrete behavioral episodes that an individual carries out over a standard period [ 15 ].

Organizations that focus on their employees’ welfare believe that employees’ attitudes and behaviors play a key role in improving the performance of an organization [ 13 , 16 ]. The organizational climate reflects employees’ perceptions of the policies, practices, and procedures that are expected, supported, and rewarded through the human resources department of the organization [ 17 ]. The organizational climate is a meaningful component with significant implications in human resource management and organizational behavior [ 16 ]. A complete reference guide, interventions, and policies to enhance employees’ well-being exist [ 17 , 18 ]. Environmentally sound behavior can be recognized through employees’ well-being and satisfaction, which are fundamental to employees’ quality work performance within organizations, particularly for employees in sedentary jobs, who often perform cognitive tasks that need a clear mind [ 19 , 20 , 21 ]. The effectiveness of physical activity interventions in improving well-being across office-based workplace settings [ 22 ], the association of sedentary behavior with metabolic syndrome [ 23 ], as well as the relation between financial incentives, motivation, and performance [ 24 ], are issues that fueled a great deal of research in the fields of management, occupational health, work and organizational psychology [ 15 , 16 , 17 , 18 , 19 , 20 ].

Although there is no consensus about a single definition of well-being, there is a general agreement that well-being includes the presence of positive emotions and moods (e.g., contentment), the absence of negative emotions (e.g., depression and anxiety), satisfaction with life, fulfillment, and positive functioning [ 16 , 17 , 18 , 19 , 20 , 21 , 22 ]. Well-being has been defined as the combination of feeling good and functioning well; the experience of positive emotions such as happiness and contentment as well as the development of one’s potential, having some control over one’s life, having a sense of purpose, and experiencing positive relationships [ 17 , 18 , 19 , 20 , 21 ]. Researchers from several areas have examined diverse aspects of well-being [ 17 ], i.e., physical, economic, social, emotional, and psychological well-being, development and activity, life satisfaction, domain-specific satisfaction, engaging activities, and work [ 17 , 18 ].

Empirical studies report strong correlations between social contact as well as health and subjective well-being [ 19 ]. Research on employees’ well-being operating in organizations was only developed a few decades ago. The examination of the relationship between employees’ well-being and the cardiovascular system, for example, revealed that physical and psychological well-being should be understood as a source of effectiveness [ 12 , 19 ]. In the past two decades, considerable development in the economics of subjective well-being is reflected in the great number of research studies published reporting the quality of life and its determinants [ 14 , 15 , 18 , 21 , 22 , 24 ].

Subjective well-being is a concept generally operationalized as multifaceted in nature, with both affective and cognitive components [ 17 , 18 , 25 ].

Among the constituent components of subjective well-being, life satisfaction was identified as a distinct construct representing a cognitive and global evaluation of the quality of one’s life as a whole [ 17 ]. Although life satisfaction is correlated with affective components of subjective well-being, it forms a separate factor from the other types of well-being [ 18 , 25 ]. Comprehensive assessment of subjective well-being requires separate measures of both life satisfaction and affective components of subjective well-being [ 21 ].

Life satisfaction is a cognitive evaluation of the overall quality of one’s life [ 21 ] and is one of the many overlapping facets of subjective well-being [ 25 ]. Life satisfaction is related to self-perception [ 26 ] and is a significant predictor of employees’ productivity in sedentary jobs [ 11 ], specifically in older adults [ 6 , 7 , 8 , 9 ].

Various studies [ 27 , 28 , 29 , 30 ] analyzed factors associated with life satisfaction and well-being and investigated what makes people happy [ 31 ]. The effect of age and body composition of office employees was examined [ 32 ], as well as stress and resilience potential [ 33 ] in different professions [ 34 ]. In such studies, the authors mentioned methodological limitations relevant to measurement scales [ 35 ], empirical models’ validations [ 36 ], statistical power analyses in behavioral science [ 37 , 38 , 39 , 40 ], and other principles and applications of qualitative research [ 41 ].

Life satisfaction judgments are mostly based on a person’s subjective criteria rather than necessarily reflecting outward conditions [ 25 , 26 , 29 ]. However, the assessment of life satisfaction can be only marginally influenced by mood and context since life satisfaction is a temporally stable construct [ 26 ]. Life satisfaction evaluations are broadly associated with other stable traits. The empirical relationships are consistent with the theory regarding core self-evaluations, which suggests that dispositions are important explanatory variables for predicting various forms of subjective well-being [ 17 , 18 , 19 , 22 , 27 , 28 ].

Job satisfaction is the result of a person’s attitude towards work and the factors associated with their work and life in general [ 15 , 16 , 21 , 22 ] and is closely related to work performance [ 15 , 16 , 21 , 22 , 31 ]. Several studies found a positive correlation between job satisfaction, the organizational climate [ 16 ], and overall performance [ 21 , 22 ].

Many authors mentioned other methodological dilemmas, i.e., different measurement scales [ 35 ] and empirical validations [ 36 , 40 ], i.e., also the calculation of posterior distributions by data augmentation [ 41 ], and different variations of satisfaction surveys [ 42 ]. Unfortunately, many studies on workplace characteristics, well-being, and life and job satisfaction rely primarily on cross-sectional self-reported surveys [ 8 , 26 , 27 , 28 , 29 , 43 ], making it difficult to disentangle the relationship between constructs. It has been a trend lately to develop work environment by various systematic approaches, e.g., the Human Resources Index [HRI] measurement [ 43 ]. In addition, motivation, and more specifically intrinsic motivation, was an important determinant of psychological well-being, gaining greater influence among male participants who had a higher level of physical activity, highlighting the need to increase one’s intrinsic motivation [ 44 ]. There are also always questions connected to lifestyle, in modern society especially related to eating habits [ 45 ]. The dynamic, adaptable complex approaches are especially important in recent years in response to COVID-19, connected with changes in general lifestyle, physical activity patterns, and sedentary behavior and associations with mental health [ 44 , 46 , 47 , 48 , 49 ], especially in computer workers, as one of the most typical sedentary works. In recent years, authors have suggested different models for the balance between work and life for subjective well-being, e.g., the moderated mediation model [ 50 ], or they have written about exploring the nature and antecedents of employee energetic well-being at work and job performance [ 51 ]. A special case is also well-being at work after a return to work [ 52 ]. This was considered as not under the special focus of our research; however, it was recognized as part of the organizational culture in the enterprises.

The purpose of this study was to explore the relationship between employees’ work performance and their well-being, job satisfaction, and life satisfaction in sedentary jobs in Slovenian enterprises with more than 80% sedentary workplaces, using a mixed-methods research design. This is the first time that research has been conducted into the correlation between employee performance, well-being, job satisfaction and life satisfaction in Slovenian enterprises, making the research a unique contribution to the field. The main gaps, which are supplemented by our studies, encourage similar further studies in sedentary jobs in Slovenia with the final goal to improve not only work performance but also the organizational culture in enterprises with sedentary jobs in Slovenia.

2. Materials and Methods

Both quantitative and qualitative methods were applied. All authors collaborated to design the procedure, while the first author carried out data collection. The possibility of a face-to-face or telephone conversation to explain further details of this study was offered to all participants and eleven of them used the opportunity to be provided with further information, while the remaining participants provided their consent to participate without asking for further explanation.

The methodological tool of this study was questionnaires, which have been used and proven in similar studies [ 15 , 25 , 36 , 38 , 42 ]. In addition, selected human resource management (HRM) professionals reviewed the questions to test the acceptance and feasibility of the questionnaire for our sample. To pilot test the questionnaire prior to the beginning of the trial, HRM professionals were approached that had been identified as being willing to volunteer to use the questionnaire. The data sets were analyzed quantitatively using descriptive statistics and analysis of reliability (STATA).

2.1. Quantitative Methodology

The first part consisted of a set of broad, self-report, psychometrically valid questionnaires conducted by the first author in the 22 organizations that have mostly (more than 90%) sedentary workplaces in Slovenia. A short explanation of the basic terminology used was added as an introduction to the questionnaires relating to work performance, well-being, job satisfaction, and life satisfaction.

2.2. Study Participants and Data Collection

The research team initially sent invitations with an explanation of the purpose of this study to the 81 identified enterprises, spending more than 85% of working time in sedentary positions. After detailed explanations, 22 of the invitees agreed to cooperate. Permissions and guidelines for the testing protocols and the design of this study, as well as any additional information required, were established through several face-to-face meetings and telephone conversations with executive managements and HRM specialists of the selected enterprises participating. In the pre-phase, the participant–employees were also offered the possibility of a face-to-face or telephone conversation about any details or additional information they required about this study. Eleven employees asked for additional information. Data collection was carried out from September 2018 to April 2019, with one day spent in each enterprise. Completion of all measurements for this study took approximately two hours per participant, between 9:00 A.M. and 3:00 P.M. To ensure standardized conditions, data collection took place in a designated meeting room which was intimate while also being large enough for completing all required measurements. Employees were from different levels of the organizational hierarchies and were categorized according to their role, gender, age, and education level ( Table 1 ). Each employee was required to work an eight-hour day, starting between 6:00 A.M. and 9:00 A.M. and finishing between 2:00 P.M. and 5:00 P.M. ( Table 1 ).

General characterization of the participants.

Note: N (number of participants); SD (standard deviation). Body mass index classification: underweight <18.4; normal weight 18.5–24.9; overweight 25.0–29.9; obesity ≥30.0.

2.3. Procedure

All authors collaborated to develop the design of the procedure, while data collection was carried out by the first author.

Study participants were informed in advance of the purpose of this study, guaranteed anonymity and that the data analysis would be based on the responses of all organizations as a whole and not at the individual company level.

In the first phase of the procedure, conversations with employees who wanted further explanation were carried out. The questions referred to the aims of this study, the topics, the hypothesis, if any, as well as the conducted research and their results. The remaining participants provided consent to cooperate without asking for further explanation. After a positive response from all the participants, the testing procedure was carried out in the participants’ workplace. A short explanation of basic terminology used was also added as an introduction to the questionnaire.

The aim of this study was to collect information about four components of work: (i) employee performance; (ii) well-being; (iii) job satisfaction; and (iv) life satisfaction. The first part consisted of a set of broad, self-report, psychometrically valid questionnaires. The adapted self-assessment questionnaires were validated and translated into Slovenian.

The following self-reported questionnaires were used; one for each of the four components of work being researched. That is, employee performance, well-being, job satisfaction, and life satisfaction.

  • Employee performance: The Employee Performance Questionnaire (EPQ) [ 38 ] (Capital Associated Industries, Inc. (Raleigh, NC, USA), 2011) is a valid [ 36 ] measure that assesses individuals on different parameters related to a wide range of working skills (e.g., working at full potential, quality of work, consistency of work, communication, independence, taking initiative, teamwork, productivity, creativity, honesty, integrity, relationships with colleagues, relationships with customers, technical knowledge, reliability, accuracy, and presence). It consists of 23 items with one reverse question and five response options: One participant indicated that the suggested questions did not apply to them, while five participants indicated aptitude. The EPQ is characterized by a total score with a possible range of scores from 23 to 115.
  • Well-being: The General Health Questionnaire (GHQ) [ 42 ] is a consistent, reliable self-report questionnaire designed for use in a variety of settings and cultures in general population samples. There are several versions of the GHQ [ 42 ]. In this study, we used the GHQ-12 due to the simplicity of application in practice and research. The selected version consists of 12 items that examine the mental health of individuals by rating a specific symptom experience or current behavior on a 4-point scale (less than usual, no more than usual, rather more than usual, or much more than usual). It is characterized by a total score of 12–36.
  • Job satisfaction: The Job Satisfaction Questionnaire (JSQ) [ 42 ] is a psychometrically valid self-report questionnaire that measures an individual’s job satisfaction [ 42 ]. It consists of 13 questions and five response options, with 1 indicating strong disagreement and 5 indicating strong agreement with the suggested statements. It is characterized by a total score in the range of 13–65.
  • Life satisfaction: The Life Satisfaction Questionnaire (LSQ) [ 15 , 25 ] is a brief psychometrically based 5-item instrument designed to measure global cognitive assessments of life satisfaction. It consists of five items and seven response options, from 1 indicating strong disagreement to 7 indicating strong agreement. The LSQ has excellent psychometric properties, including high internal consistency and test–retest reliability. It is characterized by a total score in the range of 7–35.

The data collected from the questionnaires were accompanied by systematic observation, which was introduced as an objective, well-ordered method for close examination of the selected aspects of this study. Systematic observation involved questions about the participants’ opinions on concrete activities to promote health and well-being in the organizations, on life and job satisfaction in sedentary jobs, and on why some employees decided to cooperate and some not. Systematic observation and a number of in-person, one-to-one discussions were undertaken in the same session of the preparation phase, especially with people who supported the authors in organizing data collection in the company (mostly HR specialists or directors), and later with the respondents while conducting the survey.

The Ethical Committee at the Faculty of Sports, the University of Ljubljana (No. 5) approved this study in March 2018.

2.4. Data Analyses

The statistical software STATA (Stata Statistical Software: Release 14.2, rev.19; 2016, StataCorp LP, College Station, TX, USA) was used to analyze sample data.

Using descriptive methods, the sample was analyzed by taking measurements of the frequency and percentages of responses to all questions. The statistical analysis was blinded to the researchers and conducted independently. Descriptive statistics, such as proportions for categorical variables and mean values and standard deviations for numeric variables, were used to summarize respondents’ characteristics.

Two-Sample Assuming Equal Variances ( p = 0.05) was used to calculate the differences between groups according to:

  • Age (range 19–35; age range 36–70),
  • Gender (man/woman),
  • BMI (normal weight = 18.5–24.9; pre-obesity = 25.0–29.9), and
  • Education level (high school degree = 2; college and university degree = 3).

Respondents’ self-report EPQ, GHQ, JSQ, and LSQ scores were summarized with an average score for each question (for each individual). The correlation between the results of the self-assessed variables from the questionnaires (the EPQ, the GHQ, the JSQ and the LSQ) was applied, where the magnitude of correlation coefficients was explained according to Hemphill [ 39 ]. The effect size was considered as low when the value ranged from 0.1 to 0.3, moderate when it ranged from 0.3 to 0.5, and large when it ranged from 0.5 to 1.0 [ 41 ]. Multiple regression analysis was used to assess the relationship between one dependent variable calculation (the EPQ, which consisted of 23 variables), and three independent variables (the GHQ consisting of 12 items, the JSQ of 13, and the LSQ of five items). R-squared (R 2 ) was used to measure a proportion of explained variance represents the fit of the data to the model. The effect size was considered low when R 2 was <0.3, no effect or very weak when R 2 was 0.3, medium when R 2 was 0.5, and large when R 2 was 0.7 [ 41 ].

Adjusted R-squared measures were used to test the fit of the model.

2.5. Qualitative Methods

The qualitative research methodology was mostly followed according to Evans et al. [ 41 ].

Question-focused analysis was used as a starting point when organizing the raw data, and the responses that had similar themes and that represented the same points were grouped together. All the information was transcribed verbatim and read through several times by the authors. The first-named author then conducted a thematic analysis according to Braun and Clark and Evans et al. [ 41 ], whereby initial comments, codes and memos were categorized systematically into broader themes and concise phases as evident in Table 2 . The six phases identified were (i) becoming familiar with the data, (ii) generating initial codes, (iii) identifying potential themes, (iv) reviewing themes, (v) defining and naming the themes and (vi) producing the report.

Estimated correlation matrix and the significance of self-report instruments.

Note: * Significance p < 0.05.

The qualitative method involved information about specification of the exact actions, attributes, and other variables that were systematically written in the preparation phase and after each data collection, through administration of questionnaires in all organizations. With this observation, the authors aimed to explore how decisions were made and provided the researchers with detailed insight. The data analysis followed the principles of qualitative methodologies [ 41 ].

The main questions in the one-to-one discussion were:

  • What is the reason that you agree to participate in actives connected with work performance, job satisfaction and life satisfaction measurements (also in this study)?
  • What is your opinion about the significance of job satisfaction, life satisfaction and well-being measurements for work performance?
  • What is your opinion about employees’ willingness/unwillingness to participate in actives connected with work performance and your opinion about the general organizational climate in the enterprises?
  • Should companies in Slovenia invest more in employees’ work performance (in their well-being, job, and life satisfaction)? If yes/no, what are your reasons?

3.1. Demographic Data of the Participants

A convenience sample of 120 employees from 22 organizations—65 of whom were female, with an age range from 25 to 69 years, and 55 of whom were male, with and age range from 22 to 70—participated in this study. The main criterion was having a sedentary job. Employees were of different levels of the organizational hierarchies: operational workers (57%), management (9.8%), division management (9.1%), directors and owners (3.3%), and sole traders (14.0%). The study participants were also categorized according to their education level ( Table 1 ).

A total of 120 respondents from 22 organizations completed the EPQ, the GHQ, the JSQ, and the LSQ ( Table 1 ).

The mean age of the participants (SD) was 35.1 (±12.9) years and more than half of them were female (53.3%). The mean height and weight of the participants were 1.7 m and 74.3 kg, respectively, which was considered ‘normal weight’ when assessing the body mass index (BMI) of the participants according to the World Health Organization BMI classification [ 45 ].

Among the organizations, 39.3% of all employees worked in a small organization with the working group of less than 10 employees, which is the highest proportion in the sample; 20.5% worked in a group of 11–50 employees; 28.7% in a group of 51–250 employees; only 11.5% of all employees worked in a group with more than 250 employees.

The majority of study participants (41.0%) had a secondary school diploma or bachelor’s degree prior to the Bologna Process, while 38.5% had completed secondary schooling and 16.4% a master’s or specialization or Ph.D.

EPQ: The EPQ was measured on a on a scale of 1–5. Employees assessed their own work performance as high; the mean score of the EPQ reached 4.2 (SD = 0.04), which is a high score. Accordingly, the differences between the respondents were minor. The lowest value was 3.1, and approximately 80% of the estimates were higher than 4.0.

GHQ: The mean value of the GHQ on a scale of 0–3 was 1.38 (SD = 0.04). The scores were almost symmetrically distributed. The differences between respondents were typical of normal distribution.

JSQ: The JSQ was measured on a scale of 1–5. The mean value of the JSQ was 3.84 (SD = 0.06). Similarly to the EPQ, the JSQ scores showed progress in a positive direction and little difference between respondents. The lowest score was 0.17, while the highest score was 2.75.

LSQ: The LSQ scores were measured on a scale of 1–7, where the mean value was 4.86 (SD = 0.11). The differences between respondents were significant. The lowest mean value was 1.67, and the highest was 7.0. Nearly ten percent (9.8%) of the respondents reported dissatisfaction with work, with a mean value of <3. More than 80% of respondents reported their satisfaction with work, with a score of four or more.

3.2. Employee Work Performance and the Selected Variables (Well-Being, Job and Life Satisfaction)

The correlations between the Employee Performance Questionnaire (EPQ) and the selected factors from the GHQ (well-being), by the JSQ (job satisfaction) and by the LSQ (life satisfaction) were measured with correlation and regression analysis.

The analyses of the results showed statistically significant positive correlations between estimates of the EPQ and the JSQ (r = 0.36) and between estimates of employee performance and life satisfaction (r = 0.29). Cohen’s effect size was medium, showing no correlation between employee performance and general health (r = −0.08), possibly a negative correlation between the two measures although not statistically significant ( p = 0.33) ( Table 3 ).

Regression analysis between one dependent (EPQ) and three independent variables results (GHQ, JSQ, and LSQ).

Note: Coeff. (coefficient); t (t-statistic); N (number of participants). The standardized coefficient estimates the mean change in the dependent variable for a 1 standard deviation (SD) increase in the independent variable.

Multiple linear regression was calculated to predict work performance based on the GHQ, JSQ and LSQ results. A significant regression equation was identified, F (3, 116) = 7.70, p = 0.0001, with an R 2 of 0.166.

Participants’ EPQ result was equal to 3.109 ± 0.066; GHQ 3.109 ± 0.181; JSQ 3.109 ± 0.076; LSQ (with GHQ, JSQ, and LSQ scores measured as means).

Both the JSQ ( p = 0.001) and LSQ results (0.021) significantly affected the EPQ values, while the GHQ results (0.444) did not. A graphical representation of the correlation from the regression model is shown in detail in Figure 1 .

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Scatter plots of the EPQ associated with the GHQ, JSQ, and satisfaction with life scale (SWLS = LSQ) means in the regression model. Coeff. (coefficient), SE (standard error), and t (t-statistic).

3.3. Qualitative Method Results

Thematic analysis was used as a starting point after organizing the raw data, and the responses that had similar themes and that represented the same points were grouped together.

More than expected results and themes were found for the final report from thematic analysis:

Systematic observation

  • Employees who explain their overall status as ‘healthy and wealthy’ and themselves as ‘a productive employee’ are ready to cooperate in research.
  • Employees who are not in good health try to hide their condition and are not ready to speak about it in a company setting.
  • Employees who are not in good health feel vulnerable and deny all sorts of activities in the enterprises.
  • In the testing process, the study participants insisted that the data only be analyzed as part of the whole sample and not on an individual basis or within one company.
  • Employees who were not ready to cooperate are also not ready to take part in other healthy lifestyle activities being organized in the frame of company.
  • Employees who are not ready to take part in this research also in general refuse nearly all ‘well-being and social lifestyle’ activities in the enterprise and in their leisure time.

One-to-one discussions:

  • The respondents (employees in the enterprises who were ready to take part in this research) reported that employees from all companies in general are divided into two groups concerning work performance topics—those willing to participate and those who would absolutely not. They were always on the opposite ends of the spectrum, which could mean that cohesion in not high and that the organizational climate is not optimal.
  • Employees who were ready to participate reported their opinion that they represented the better part of employees in the organizations, that they always cooperate, that they are more motivated for better work performance and that they are more productive. They call themselves cooperative employees.
  • The cooperative employees reported that there are some employees in the enterprises who are not cooperative, because they try to hide their level of well-being, their health and lifestyle status.
  • According to management representatives, employees who are not in good health feel vulnerable and refuse to participate in all sorts of activities organized in their company.
  • Respondents reported that employees who were not ready to take part in this research (called ‘those others’) also in general refuse to participate in nearly all well–being and social activities in their company and in their leisure time.
  • Respondents reported that “those others” are not motivated and are not concerned with creating a good organizational climate.
  • Although anonymity in the testing process was provided to all, the participants reported concerns and doubts, insisting that the data should only be analyzed as part of the whole sample and not on an individual basis or within one company.

Thematic analysis (coding and iterative comparison) gave some interesting conclusions ( Table 4 ).

Results of systematic observations and one-to-one dissuasions.

4. Discussion

The labor market is constantly changing, and sedentary work behavior is nowadays, due to technological advancement and new lifestyles, becoming even more pervasive worldwide. One of the questions is how the new conditions influence work performance, responsibilities, and ability to do the job well. This motivated our research on sedentary jobs for the first time in Slovenia together with well-being and other characteristics. The primary purpose of this study was to determine the correlation between work performance and different factors (well-being, job, and life satisfaction) in sedentary jobs. The results show statistically significant correlations between work performance and two measured factors—job satisfaction and life satisfaction. On the other hand, the correlation between well-being and work performance surprisingly did not prove to be statistically significant. Nevertheless, our results showed that well-being is significantly correlated with job and life satisfaction, which are correlated with work performance. On that basis, it can be concluded that there is some indirect relationship between work performance and well-being, which was also established in some earlier studies [ 19 , 23 , 26 ].

The correlations between job satisfaction [ 14 , 15 ], life satisfaction [ 5 , 6 ], and work performance have already been proven in many countries. It has also been found that sedentary behavior negatively correlates with an active lifestyle [ 4 , 6 ] and with less effective work performance [ 14 , 35 ], which also supports our conclusions. Furthermore, our systematic observation findings indicate specific problems in the organizational climate among employees and point to a significant division between the groups and consequential low team cohesiveness, which is essential for team or group effectiveness and work performance [ 50 ]. In our study, the group of employees who were willing to participate called themselves ‘cooperative employees’, whereas employees who were not ready to take part in this study were referred to as ‘those others’, those who never cooperate and always complain. We regret that we were not able to conduct one-to-one discussions with the ‘those others’ group and determine the reasons for their refusal to participate. Many respondents reported their opinion that those who refused to participate in this study in general create a negative working atmosphere in the studied companies. Such opinions were also confirmed by the opinion of management representatives. This calls for new approaches for improving the general organizational climate in Slovenian enterprises, as a base for other necessary improvements. Our findings could, therefore, also serve as an incentive to develop new practical interventions and approaches to improving the organizational climate, as the main goal is to improve work performance and thus all factors that might affect it.

Job satisfaction can be improved in practice by encouraging employees and making them encourage other employees [ 14 , 15 , 20 , 21 , 30 ], which also improves team cohesion [ 37 ], by giving them access to information and all necessary resources to perform their job efficiently, giving them real-time feedback on their job performance [ 43 ] and by providing them with opportunities to explore and show their skills and talents. Furthers studies are needed to confirm whether the employer’s trust and faith in their employees are crucial, a subject studied by others [ 21 , 30 , 44 , 46 , 47 , 48 ]. The participants, however, believe that the biggest hindrance to achieving such improvement are employees who are not ready to cooperate.

The findings from this study also led to the conclusion that sedentary jobs in the studied companies require complex human resource management. Therefore, more complex studies are needed in this field, with special monitoring and maybe even with human resource index (HRI) measurements, e.g., [ 43 ], which is the current trend in economics, as well as the new reality in economics [ 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54 ] and in society.

5. Conclusions

As in most of Europe, Slovenia is also facing the challenge of sedentary behavior as part of modern work conditions. This is the first time that Slovenian enterprises were researched in terms of sedentary work conditions, concerning job satisfaction, life satisfaction and well-being on work performance, which is the main novelty of the work and presents the possibility of comparing findings with other studies [ 48 , 49 , 50 , 51 , 52 , 53 , 54 ], such as the effect of COVID-19 [ 5 , 47 ], remote job options and cross-country differences [ 53 ] or socio-economics status in the relationship between leadership and well-being [ 54 ]. The main gaps, which are supplemented by our studies, are, in addition to finding the correlations between some factors and work performance in sedentary jobs, encouraging similar further studies with the final goal of determine the factors that correlate most with job performance in sedentary work conditions. The aim was to highlight that the study found many employees do not cooperate. In general, our study confirms that for employees in sedentary jobs in Slovenia, work performance is correlated with life and job satisfaction. Nevertheless, it is not directly correlated with well-being as this may have been predicted based on the findings of previously published studies. This can be explained by the small sample size and data collection limitations due to distrusting the research, discomfort, or poor well-being in the work environment. This may suggest that the enterprises involved in our study are confident about their organizational climate. Our practical recommendation is to expand the focus from work performance to improving cohesion and the organizational climate in enterprises in order to create the optimal work environment in sedentary workplaces in Slovenia. The results indicate important conclusion as well as making clear the significant need for further research on the impact of well-being on employees’ productivity in sedentary jobs, in order to face the new reality requiring the need to organize sedentary jobs in different forms, e.g., providing remote job options which might be critical economically in this new decade.

Funding Statement

The research was partly conducted as part of the research program, Bio-psycho-social context of kinesiology, code P5-0142, funded by the Slovenian Research Agency.

Author Contributions

Conceptualization, M.T., M.B. and Z.K.; methodology, S.S. and K.R.; software, S.S.; validation, M.T. and S.S.; formal analysis, Z.K. and S.W.-G.; investigation, Z.K. and S.S.; resources, Z.K. and M.B.; data curation, Z.K.; writing—original draft preparation, Z.K., M.B. and S.W.-G.; writing—review and editing, S.S. and S.W.-G.; visualization; supervision, M.T.; project administration, M.T. and M.B. All authors have read and agreed to the published version of the manuscript.

Institutional Review Board Statement

This study was conducted in accordance with the Declaration of Helsinki. The Ethical Committee at the Faculty of Sports, the University of Ljubljana (No. 5) approved this study in March 2018.

Informed Consent Statement

Informed consent was obtained from all subjects involved in this study.

Data Availability Statement

Conflicts of interest.

The authors declare no conflict of interest. The funders had no role in the design of the study; in the collection, analyses, or interpretation of data; in the writing of the manuscript, or in the decision to publish the results.

Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations.

ORIGINAL RESEARCH article

Work-life balance, job satisfaction, and job performance of smes employees: the moderating role of family-supportive supervisor behaviors.

\r\nPerengki Susanto&#x;

  • 1 Department of Management, Universitas Negeri Padang, Padang, Indonesia
  • 2 BRAC Business School, BRAC University, Dhaka, Bangladesh
  • 3 Faculty of Economics and Management, National University of Malaysia, Bangi, Malaysia

Even though studies on work-life balance and family-supportive supervisor behaviors are prevalent, there are few studies in the SME setting, and the implications are yet unexplained. Thus, the study examines the effect of work-life balance on the performance of employees in SMEs, along with the mediating role of job satisfaction and the moderating role of family-supportive supervisor behaviors. We have developed a conceptually mediated-moderated model for the nexus of work-life balance and job performance. We collected data from SMEs and employed SEM-PLS to test the research hypothesis and model. Empirical results demonstrate that work-life balance positively influences job satisfaction and performance. Our empirical findings also revealed that job satisfaction partially mediates the relationship between work-life balance and job performance. We also found that when FSSB interacts with work-life balance and job satisfaction, it moderates the relationship between work-life balance and job performance and job satisfaction and job performance. Hence, our findings provide exciting and valuable insights for research and practice.

Introduction

The importance of Small and Medium Enterprises (SMEs) in the global and national economies is worth mentioning, considering their role in creating employment and contributing to GDP. According to a World Bank (2020) survey on SMEs, the sector accounts for 90% of businesses and 50% of jobs globally. According to the report, this sector contributes more than 40% of GDP and creates 70% employment in developing economies. The SME sector is rapidly expanding in Indonesia, and around 63 million SMEs operate ( Surya et al., 2021 ). Of those, 62 million are classified as medium-sized firms, and 0.75 million are classified as small businesses. SMEs are divided into four categories: household businesses with 1–5 workers; small and medium businesses with 6–19 workers; medium-sized companies with 20–29 workers; and large companies with more than 100 workers ( Badan Pusat Statistik, 2020 ). More importantly, the sector contributes 61.07% of the country’s total GDP and provides 97% of the entire employment ( ILO, 2019 ; Kementerian Koperasi dan UKM Republik Indonesia, 2019 ; Pramono et al., 2021 ).

Given the importance of SMEs in the economy, it is necessary to maintain and sustain the sector’s human resource performance. A strand of the literature highlighted that firm-specific factors and the environment impact employee performance. Another strand of the literature highlighted that the performance of an employee could be influenced by cognitive factors, such as individual quality ( Luthans et al., 2007 ), supervisor support, work-life balance ( Talukder et al., 2018 ), cognitive abilities, personality ( Kanfer and Kantrowitz, 2005 ), leadership, and family supportive supervisor behaviors ( Walumbwa et al., 2010 ; Wang et al., 2013 ; Kim et al., 2015 ). Although all these factors are important determinants, the current study argues that work-life balance and family supportive supervisor behavior are more important than employees’ involvement in every possible business activity of SMEs.

In the SME world, the working hours are different from those in larger firms. SMEs demand longer hours from employees. Therefore, it is difficult for employees to balance work and personal life. Some of the time, they also failed to maintain social and personal life due to high engagement and stress at work. The entanglements between work and family are a significant source of psychological discomfort for employees ( Cegarra-Leiva et al., 2012 ; Lamane-Harim et al., 2021 ). This could lead to job dissatisfaction and poor job performance. Hence, the employee turnover and the intention to quit. On the other hand, Haar et al. (2014) stated that WLB has a positive impact on one’s achievements, including performances. Similarly, increased job satisfaction impacts performance ( Luthans et al., 2007 ; Walumbwa et al., 2010 ). Positive job satisfaction will increase employee capacity, which, if appropriately managed, will have a good impact on the employee’s job performance ( Luthans et al., 2007 ).

However, in the competitive market, being a small team, the SMEs may not be able to afford to lose their skilled and knowledgeable employees as they are involved in product innovation and product sales. In order to facilitate work-life balance, SMEs indeed need to deploy the WLB’s supportive culture. Lamane-Harim et al. (2021) suggest that practices or the introduction of WLBSC could influence job satisfaction and organizational commitment. These factors ultimately determine employee performance in SMEs and their sustainability (e.g., Cuéllar-Molina et al., 2018 ). In the practices of WLBSC, family-supportive supervisor behaviors could play an important role, as family-supportive supervisor behaviors are expected to influence outcomes related to one’s performance ( Wang et al., 2013 ). In previous studies, supportive family supervisor behaviors were associated with job satisfaction and job performance ( Greenhaus et al., 2012 ; Wang et al., 2013 ; Heras et al., 2021 ). Past studies also suggest the mediating role of work-life balance supportive culture in SMEs. However, since the work-life balance supportive culture is a contextual factor and a new introduction into the working environment, it is expected to increase or decrease the extent of the relationship between work-life balance (WLB) and job satisfaction and the relationship between work-life balance (WLB) and job performance. It also raises the question of how moderation affects the existing relationship between work-life balance (WLB) and job satisfaction and the relationship between work-life balance (WLB) and job performance. However, past studies have not investigated the moderating role of family-supportive supervisor behaviors (e.g., Greenhaus et al., 2012 ; Wang et al., 2013 ; Heras et al., 2021 ; Lamane-Harim et al., 2021 ).

Past studies on work-life balance have primarily focused on large firms. Several other studies have recommended more studies of this topic in SMEs ( Lavoie, 2004 ; Cegarra-Leiva et al., 2012 ). Recently, Lamane-Harim et al. (2021) have researched work-life balance and WLBSC on Spanish SMEs. Furthermore, most research analyzing the relationships between WLBSC and employee outcome has been conducted in the United States. Moreover, national culture can also affect the intensity of the link between WLB practices and their effects on employee outcomes ( Spector et al., 2007 ; Poelmans et al., 2005 ; Cegarra-Leiva et al., 2012 ; Lucia-Casademunt et al., 2015 ; Ollier-Malaterre and Foucreault, 2017 ; Putnik et al., 2020 ; Kelley et al., 2021 ). Thus, the current study fills the research gap by examining the moderating role of family-supportive supervisor behaviors on the relationship between work-life balance (WLB) and job satisfaction and the relationship between work-life balance (WLB) and job performance. To fulfill these objectives, a review of the literature is carried out. The research hypotheses are developed, which are examined in an empirical study with a sample of employees of Indonesian SMEs in an industrial sector. The implications arising from the investigation are given in the final part. Henceforth, the current study will be beneficial to the SME sector in Indonesia alongside the literature.

Literature Review

Social exchange theory.

According to the Social Exchange Theory (SET) ( Blau, 1964 ), social exchange relationships rest on the norm of reciprocity ( Gouldner, 1960 ). The theory argues that when one party provides a benefit to another, the recipient tends to reciprocate the favor by offering benefits and favorable treatment to the first party ( Coyle-Shapiro and Shore, 2007 ). In an organizational behavior context, the social exchange theory is frequently used to explain the formation and maintenance of interpersonal relationships between employees and employers regarding reciprocation procedures ( Chen et al., 2005 ; Rawshdeh et al., 2019 ). The theory explains why employees choose to be less or more engaged in their jobs ( Lee and Veasna, 2013 ) and how the organizational support system influences subordinates’ creativity ( Amabile et al., 2004 ) and other positive behavior.

Past studies have argued that when management provides benefits to employees, employees tend to feel indebted to the organization and make more substantial efforts to ensure its well-being and achieve its goal ( Eisenberger et al., 2001 ; Vayre, 2019 ). Several studies found evidence in the work-life balance literature that when organizations or supervisors care about their employees’ personal and professional well-being, employees tend to reciprocate by helping them achieve their goals through improved performance ( Campo et al., 2021 ). Therefore, based on the social exchange theory, this study argues that when organizations take care of the balance between employees’ personal and professional lives, employees’ perceived positive feelings increase their job satisfaction, and they are more inclined to reciprocate the favor through high job performance ( Talukder et al., 2018 ). In such circumstances, the supervisor’s formal and informal support further increases employees’ perceived positive feelings toward the job and strengthens the relationship between work-life balance, job satisfaction, and job performance. We present a conceptual model in Figure 1 , which illustrates the expected causal relationship among study variables.

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Figure 1. Conceptual research model.

Job Performance

Employee job performance refers to an employee’s expertise in carrying out their duties in a way that helps the organization achieve its goals ( Luthans et al., 2007 , 2008 ; Nohe et al., 2014 ; Moonsri, 2018 ). It is also defined as an individual’s productivity compared to their coworkers on a variety of job-related behaviors and results ( Babin and Boles, 1998 ; Aeknarajindawat and Jermsittiparsert, 2020 ). Performance is determined by the quality and quantity of work completed as part of an employee’s assigned responsibilities. Employee performance directly influences an organization’s financial and non-financial outcomes ( Anitha, 2014 ). Thus, organizations need high-performing employees to achieve their corporate goals, vision, and mission and gain a competitive advantage ( Thevanes and Mangaleswaran, 2018 ).

A business must have a persistent competitive advantage in the SME context with many competitors to compete with other companies in the same industry. While job stress has been shown to have a significant negative impact on employee performance, work overload, lack of work-life balance, management style, and job insecurity are some of the factors that contribute to increased job stress ( Naqvi et al., 2013 ). Since SMEs need employees to work longer hours, it is possible that SMEs’ employees lack a healthy balance between work and family life, thereby impacting their job performance. Organizations are increasingly focusing on implementing a variety of HR practices and strategies, including work-life balance, on increasing employee job performance, as work-life balance is seen as one of the most important factors influencing job performance ( Thevanes and Mangaleswaran, 2018 ). Previous research found ample evidence that work-life balance is essential to increasing employee job performance ( Preena, 2021 ). Therefore, the role of work-life in influencing SME employees’ job performance should be determined to ensure the industry’s survival.

Work-Life Balance, Job Satisfaction, and Job Performance

Work-life balance refers to balancing one’s professional work, family responsibilities, and other personal activities ( Keelan, 2015 ; Kerdpitak and Jermsittiparsert, 2020 ). It refers to an employee’s sense of a balance between work and personal life ( Haar et al., 2014 ). It represents how people fulfill or should fulfill their business and personal obligations so that an overlapping situation is avoided ( Konrad and Mangel, 2000 ). The changing work patterns and the pressing demand for domestic chores have had an adverse impact on people’s work, social, and family lives ( Barling and Macewen, 1992 ). Therefore, researchers suggested that the human resource management of an organization should develop effective policies such as adequate mentoring, support, flexible working hours, reducing workload, and many others that can reduce employees’ work-life conflict ( Cegarra-Leiva et al., 2012 ) and positively influence their satisfaction ( Allen et al., 2020 ) and performance ( Hughes and Bozionelos, 2007 ).

Work-life balance is one of the most important issues that human resource management should address in organizations ( Abdirahman et al., 2020 ). Regardless of their size, organizations should ensure that employees have adequate time to fulfill their family and work commitments ( Abdirahman et al., 2020 ). A flexible working environment allows employees to balance personal and professional responsibilities ( Redmond et al., 2006 ). Organizations that ignore the issue of work-life balance suffer from reduced productivity and employee performance ( Naithani, 2010 ). Indeed, employees with a healthy work-life balance are generally grateful to their employers ( Roberts, 2008 ). As a result, they put forth their best effort for the company as a gesture of gratitude, resulting in improved job performance ( Ryan and Kossek, 2008 ). Thus, a high work-life balance employee could be highly productive and an excellent performer ( French et al., 2020 ). Thus, based on these discussions and research findings, we developed the following hypothesis:

Hypothesis 1: Work-life balance has a positive effect on job performance.

Previous researchers have argued that satisfaction and success in family life can lead to success and satisfaction at work Victoria et al. (2019) . Employees who are pleased with their personal and professional achievements are more likely to achieve the organizational goal ( Dousin et al., 2019 ). While the work-life conflict has been shown to have a negative impact on employee job performance and satisfaction ( Dousin et al., 2019 ), work-life balance has been found to improve employee satisfaction and job performance in various industries and countries ( Mendis and Weerakkody, 2017 ; Thevanes and Mangaleswaran, 2018 ; Victoria et al., 2019 ; Obrenovic et al., 2020 ; Rini et al., 2020 ; Preena, 2021 ). It is documented that medical doctors’ job satisfaction and performance are influenced by their perceptions of flexible working hours and supportive supervision ( Dousin et al., 2019 ). Besides, there is ample empirical evidence that job satisfaction can positively influence employee job performance ( Krishnan et al., 2018 ; Zhao et al., 2019 ; Abdirahman et al., 2020 ). Based on the above research findings, the following hypotheses have been developed:

Hypothesis 2: Work-life balance has a positive effect on job satisfaction.

Hypothesis 3: Job satisfaction has a positive influence on job performance

Job satisfaction refers to the positive attitude felt by an employee toward the company where they work ( Luthans et al., 2007 ; Tschopp et al., 2014 ). It combines cognitive and affective responses to the disparity between what an employee wants and what they get ( Cranny et al., 1992 ). Previous research has often linked a person’s job satisfaction with their behavior at work ( Crede et al., 2007 ). It is argued that employees would be more committed to their jobs if they found them satisfying and enjoyable ( Noah and Steve, 2012 ). Employee job satisfaction is influenced by an organization’s commitment to work-life balance, and satisfied employees are more likely to invest their time and effort in the development of the organization ( Dousin et al., 2019 ) in exchange for the support they received ( Krishnan et al., 2018 ; Abdirahman et al., 2020 ). Previous research found that employee work-life balance increases employee job performance by positively influencing psychological well-being ( Haider et al., 2017 ). Dousin et al. (2019) found that job satisfaction mediates the relationship between employee work-life balance and job performance in a medical context. Since work-life balance has been seen as an influencer of job satisfaction ( Victoria et al., 2019 ) and job satisfaction influences employee job performance ( Dormann and Zapf, 2001 ; Saari and Judge, 2004 ; Crede et al., 2007 ; Luthans et al., 2007 ; Tschopp et al., 2014 ; Krishnan et al., 2018 ; Zhao et al., 2019 ; Abdirahman et al., 2020 ). Thus, based on the above research findings, this study offers the following hypothesis:

H4: Job satisfaction significantly mediates the relationship between work-life balance and job performance.

Family Supportive Supervisor Behaviors

Hammer et al. (2009) define family-supportive supervisor behaviors (FSSB) as the emotional, instrumental, role-modeling, and creative work-family management supportive behaviors that the supervisors provide to ensure employee effectiveness and satisfaction on and off the job. It refers to an employee’s perception of their supervisor’s positive attitude toward them ( Clark et al., 2017 ). Supervisory support could be formal or informal ( Achour et al., 2020 ). It is critical in developing flexible work arrangements ( Suriana et al., 2021 ).

Supervisory supportive behavior is very important for ensuring work-life balance and achieving organizational goals. It has been shown to reduce work-family spillover ( García-Cabrera et al., 2018 ) by increasing employee job satisfaction autonomy and reducing work pressure ( Marescaux et al., 2020 ). The flexibility and independence generated by FSSB help to reduce work-family conflict ( Greenhaus et al., 2012 ) by increasing employees’ control over their work ( Marescaux et al., 2020 ) and allowing them to strike a balance between their work and family life ( Heras et al., 2021 ). Employees who believe their managers care about their personal and professional lives are more likely to improve their performance and meet supervisory objectives ( Rofcanin et al., 2018 ). In a university-based study, Achour et al. (2020) showed how supervisory support positively moderates the relationship between a female academic’s work-family demands and perceived well-being. Kim et al. (2017) show that supervisory support can strengthen the relationship between deep acting and job performance, exacerbating the negative relationship between surface acting and job performance. Therefore, this study argues that, in an organization, when work-life balance is valued, supervisory support might influence employees’ positive perception, and the effect of work-life balance strategies and job satisfaction on job performance will be greater.

Hypothesis 5: Family-supportive supervisor behaviors will strengthen the positive effect of work-life balance on job performance.

Hypothesis 6: Family-supportive supervisor behaviors will strengthen the positive effect of job satisfaction on job performance.

Methods and Results

The current study has adopted a quantitative approach to determine the causal relationship of a phenomenon or problem-solving understudy to see how far the influence of exogenous variables extends to endogenous variables. The current study has also developed and distributed structured questionnaires to around 600 employees who work in SMEs in Indonesia.

To obtain and collect data, the study employed a non-probability method, namely purposive sampling. Purposive sampling is limited to certain types of people who can provide the desired information, maybe because they are the only ones who have it, or perhaps they fit the criteria set by the researcher ( Sekaran and Bougie, 2017 ). The selected sample is employees who work in SMEs that already have an employee recruitment system, have supervisors, and are married. The sample size was taken as many as 400 samples with consideration of the adequacy of the sample statistically to get a power of 0.8 with an alpha of 0.05. The sample was repeated at least five times until 20 items were observed ( Hair et al., 2015 ). The demographic profile of the respondents is presented in Table 1 . The majority of the respondents were male (57%), aged 26–35 (50.5%), had one child (30%), were senior high school graduates (42.5%), and had 2 to 10 years of experience (43.2%). Furthermore, measurements and variables are presented in Table 2 . The construct measurement items are reflective in nature.

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Table 1. Characteristics of respondents.

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Table 2. Summary for convergent validity and internal consistency reliability.

Empirical Estimations and Results

We employ the Partial Least Square (PLS) method to test hypotheses, considering variables’ direct, indirect, and total effects. PLS was chosen because the method of solving structural equation modeling (SEM) with PLS, which in this case fits the research objectives, is more appropriate than other SEM techniques. PLS is an analytical method that is not based on many assumptions ( Hair et al., 2015 ). Finally, we employ PLS-SEM because of its applicability and effectiveness in both exploratory and confirmatory research and prediction ( Chin and Dibbern, 2010 ; Ringle et al., 2012 ). To cope with missing values, we consider the mean replacement strategy ( Wesarat et al., 2018 ). The parameters of the measurement and structural models are computed in accordance with the recommendations of Hair et al. (2014) . Hypothesis testing is done by looking at the p -value generated by the inner model. This test is carried out by operating bootstrapping on the SmartPLS 3.0 program to obtain the relationship between exogenous and endogenous variables.

Measurement Model Evaluation

The measurement model has been evaluated in this study based on internal consistency, construct validity, and instrument reliability. The composite reliability can be used to assess the reliability of a variable’s indicators. With its indicators, there is a latent loading factor value. The loading factor is the path coefficient that connects the latent variable to the indicator. If an indicator has a composite reliability value greater than 0.6, it can fulfill reliability requirements. Cronbach’s alpha needs to be taken into account in the reliability test using the composite reliability approach. If a value has a Cronbach’s alpha value better than 0.7, it is deemed to be consistent ( Hair et al., 2014 ). Convergent validity testing reveals the average variance extracted value (AVE), which should be greater than 0.6 Hair et al. (2014) . The discriminant validity test is carried out by examining the value of the cross-loading factor and the criterion of the heterotrait-monotrait correlation ratio (HTMT). The HTMT ratio should not exceed 0.85 ( Henseler et al., 2015 ). Finally, the multi-collinearity test focuses on determining if there is a relationship between exogenous variables. The tolerance and variance inflation factor (VIF) values are used to analyze the extent of collinearity. A VIF value of less than 10 indicates the presence of a collinearity-free indicator. Multi-collinearity is not an issue in our study as we used reflective measuring items.

The results of convergent validity and composite reliability are presented in Table 2 . We have observed that Cronbach’s alpha values for the construct lie between 0.820 and 0.907, which are above the cut-off value of 0.6, and all latent variables had Cronbach’s alpha values above 0.7. So, it can be concluded that the construct of our study has met the reliability criteria. Additionally, the indicator loadings range between 0.709 and 0.918, which has been presented in Figure 2 , suggesting good content validity. Furthermore, the AVE value of our study variable is more than 0.50, indicating that convergent validity has been established. Furthermore, the results of discriminant validity are presented in Table 3 . From the Fornell-Lacker Criterion in Panel A of Table 3 , we noted the square roots of the AVE values (bold) are higher than the latent construct correlation. We also found that the HTMT ratio in Panel B of Table 3 between variables was less than 0.85. Henceforth, the Fornell-Lacker Criterion and HTMT ratio indicates the discriminant validity of the construct. In panel C of Table 3 , the correlation between constructs is less than 0.90, showing no multicollinearity issue in the model ( Pallant, 2011 ; Hair et al., 2013 ).

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Figure 2. Result of structural model.

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Table 3. Discriminant validity and latent variable correlation.

Structural Model Evaluation

Once the measurement model had met all the thresholds, the next step was to test the structural model. The r-square (reliability indicator) for endogenous components can be used to evaluate the structural model. The goal of variance analysis (R2) is to identify how exogenous variables affect endogenous variables. Figure 2 shows that R 2 of 0.44 of job performance indicates that work-life balance, family-supportive supervisor behaviors, and job satisfaction explain 44 percent of the job performance variable, while the remaining 56 percent is explained by outside factors. Job satisfaction’s R 2 of 0.304 indicates that work-life balance, family-supportive supervisor behaviors, and job performance explain 30.4 percent of the job satisfaction variable. In contrast, the remaining 69.6 percent is explained by components other than those explored in this study. The R 2 of the endogenous variables job performance and job satisfaction in our study model is greater than 20%, indicating a good model ( Hair et al., 2014 ).

Hypothesis Testing

For Hypothesis testing, resampling with bootstrapping can be used to compute the statistical t value. This study considered 5,000 sub-sample for bootstrapping and a two-tail significance level with biased correction. The empirical results for hypothesis testing are presented in Figure 2 and Table 4 . Our hypotheses are supported by the empirical results at the significance level of 5%.

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Table 4. Results for direct effects, mediating effect, and moderating effect.

Conclusion and Discussion

Theoretical implications.

Employees who have a poor work-life balance suffer from reduced productivity and low employee performance ( Naithani, 2010 ). In contrast, employees with a healthy work-life balance have improved job performance ( Roberts, 2008 ; Ryan and Kossek, 2008 ). In this regard, our findings demonstrate that the direct effect of work-life balance on job performance is significant with a coefficient of 0.152 (T-statistic of 3.007), suggesting a positive relationship between work-life balance and job performance. These empirical results also suggest that the employee’s job performance will also increase with a higher work-life balance. The respondents in the study also commented on their readiness to be flexible at work when needed, and they underlined that they are not ready to sacrifice their personal lives for work. Thus, the empirical findings lend strong support to our hypothesis H1. Our results are in line with the social exchange theory that a balanced proportion of time given by an employee to work-life and life-outside of work will make the employee more productive ( Brough et al., 2008 ; Roberts, 2008 ; Ryan and Kossek, 2008 ; Hofmann and Stokburger-Sauer, 2017 ). In support of the WLB and performance nexus, French et al. (2020) and Haar et al. (2014) stated that a high work-life balance also makes individuals yield to their higher job performance. Therefore, SMEs need to create a work-life balance supportive culture in the organization in order to bring out employees’ best performances, which could lead to better firm performance. The fact is that the entanglements between work and family are a significant source of psychological discomfort for employees ( Cegarra-Leiva et al., 2012 ), which causes poor performance. Additionally, Lamane-Harim et al. (2021) suggested that WLB could lead to better employee outcomes in Spanish SMEs. As a result, both employees and employers must work together to foster a work-life balance-supportive culture in the organization, which is especially difficult in the SME sector.

According to Victoria et al. (2019) , satisfied and prosperous family life could lead to success and satisfaction at work. Therefore, the importance of work-life in employee job satisfaction is indicated in the literature ( Dousin et al., 2019 ). Concerning that affirmation, this study’s evidence demonstrates that the effect of work-life balance on job satisfaction is significant with a coefficient of 0.187 (with a T-statistic value of 2.95), which is indicative of a positive relationship between work-life balance and job satisfaction. This finding implies that with a higher work-life balance, the job satisfaction of employees will also increase. Henceforth, the current results are strongly supported by hypothesis H2. These findings are in line with Haar et al. (2014) ; Dousin et al. (2019) , and many others. Their studies also found that work-life balance has a positive effect on job satisfaction; namely, the higher the work-life balance, the higher the job satisfaction of employees. Flexible working hours, given autonomy, and company policies that support the creation of a balance between work and personal life will lead to higher job satisfaction ( French et al., 2020 ). Feeney and Stritch (2019) stated that family-friendly policies and a culture of family support are essential in generating a healthy work climate. Henceforth, job satisfaction will increase. Additionally, creating a family-supporting culture, flexible working hours, and autonomy could not be done in the SME industry as the working environment is different from that of large organizations. However, suppose SMEs take the initiative to create some sort of flexible working hours and give some autonomy depending on their position inside the company. In that case, the employees could be more satisfied, especially if the primary intention is to increase employee productivity and performance. In support of this statement, our findings have found a positive influence of job satisfaction on job performance.

Job satisfaction and job performance are widely studied relationships in HRM and organizational contexts. Most studies have discovered a positive relationship between job satisfaction and job performance ( Dormann and Zapf, 2001 ; Saari and Judge, 2004 ; Crede et al., 2007 ; Luthans et al., 2007 ; Tschopp et al., 2014 ; Krishnan et al., 2018 ; Jermsittiparsert et al., 2019 ; Zhao et al., 2019 ; Abdirahman et al., 2020 ). As expected, in the current context of the study, we also found that the effect of job satisfaction on job performance is significant, with a coefficient of 0.401 (with a T-statistic value of 7.761). Hence, the current empirical findings lend strong support to H3 that job satisfaction will increase job performance. Therefore, in line with the extant studies, we also argue that SMEs should attempt to keep employees satisfied with their jobs so they can generate their best performance. The organizational theory suggests that perceived job satisfaction makes employees more committed toward their jobs, hence better output. In the SME case, work–life balance and a supportive culture could play an important role in making employees more committed and satisfied, which will increase job performance. Our hypothesis rectifies this assertation that H3 work-life balance has positive effects on job satisfaction.

In their study, Haider et al. (2017) have discussed how work-life balance increases employee job performance via influencing psychological well-being. Job satisfaction is one of the main components of psychological well-being at the workplace. Therefore, on the mediating role of job satisfaction, our findings demonstrate that the relationship between work-life balance and job performance is mediated by job satisfaction (with a coefficient of 0.075 and a T-statistic value of 2.64). Since there is a direct relationship between work-life balance and job performance, it can be concluded that the mediation is a partial mediation rather than a full one. Thus, our hypothesis H4 is accepted. The current empirical findings also support the past empirical studies, as Dousin et al. (2019) found the mediation role of job satisfaction between employee work-life balance and job performance in a medical context. Hence, our findings imply that work-life balance improves job performance by increasing job satisfaction.

Family supportive supervisor behaviors (FSSB) in the organization are about work-family spillover ( García-Cabrera et al., 2018 ) by boosting employee job satisfaction autonomy and minimizing work pressure ( Marescaux et al., 2020 ). Hence, it has been able to increase job satisfaction and performance. In this regard, although we do not hypothesize the direct effect of family-supportive supervisor behaviors, our findings confirm that FSSB positively influences job satisfaction and performance. Therefore, the existence of FSSB is essential to improve employees’ job satisfaction and job performance. Hence, these findings agree with the past studies that present a positive influence of FSSB on job satisfaction and job performance ( Rofcanin et al., 2018 ; Talukder et al., 2018 ; Campo et al., 2021 ). Henceforth, these findings confirm the assertion of social exchange theory and organizational support theory that supervisors’ formal and informal support further increase employees’ attitude toward the job, which improves job satisfaction and job performance ( Talukder et al., 2018 ).

Furthermore, our empirical results indicate that the interaction between FSSB and work-life balance positively affects job performance (with a coefficient of 0.235 and a t-statistic of 5.04). These findings suggest that when FSSB interacts with work-life balance, it attenuates the link between work-life balance and job satisfaction and job performance. As a result, the current findings provide significant support for our hypothesis H5. Kim et al. (2017) discovered that supervisory support could increase the link between deep acting and work performance. On the other hand, Alias (2021) suggest that supervisory support cannot moderate the relationship between flexible work arrangements and employee performance. Our findings, however, offer evidence that contradicts the assertion of Alias (2021) , in which we demonstrated that there could be moderating effects on the relationship between work-life balance and job performance. Hence, our finding adds novel evidence in the area of work-life balance and job performance. Again, these findings reinforce the need for a work–life balance supportive culture in the organization, as it could facilitate supervisory actions to a certain degree in supporting employees’ family and personal life.

Based on hypothesis H5, we concurred on the moderating impact of FSSB on the link between job satisfaction and job performance. We evaluated the moderating influence of FSSB on this relationship. The current study’s empirical findings indicate that the interaction effects of FSSB and work satisfaction on job performance are relatively positive (with a coefficient of 0.206 and a t-statistic of 3.25). These findings suggest that when FSSB interacts with work-life balance and job satisfaction, it moderates the link between work-life balance and job satisfaction and job performance. Hence, the current empirical results verify our claim and offer substantial support for Hypothesis H6. The interaction effects are reasonably sensible in that when employees are satisfied and believe that they will receive the required support from their boss while coping with family or personal concerns. As a result, when the level of belief and job satisfaction rises, so does the level of job commitment and engagement, resulting in higher job performance. In this regard, the current study contributes to the body of evidence on the FSSB’s moderating effects on job satisfaction and performance.

Practical Implications

In support of the WLB-performance nexus, several studies have indicated that an excellent work balance also leads to more extraordinary job performance. Thus, SMEs must foster a work–life balance-friendly culture to bring out the best in their employees, which may contribute to improved business/firm performance. In reality, the entanglements between work and family are a major source of psychological distress for employees, resulting in poor performance. Henceforth, the implementation of various WLB practices is suggested for Indonesian SMEs, particularly those not required by regulation or legal minimum to fulfill the needs of all employees. Furthermore, we also recommend that firms should provide separate WLB practice alternatives for men and women because the impacts of WLB on job satisfaction are varied, as suggested by Lamane-Harim et al. (2021) . Furthermore, family-supportive supervisor behaviors are important for promoting employees’ performance. Therefore, firms and supervisors provide some support to employees to handle and overcome family-related issues. In this regard, our findings emphasized the need to establish a work–life balance supportive culture in the firm as it might assist supervisory activities in supporting workers’ family and personal life to a different extent. In addition, managers may gain useful knowledge to create efficient job systems to improve job performance in SMEs, taking into account the relevance of work-life balance, family supportive supervisor behaviors, and job satisfaction. Individuals in SMEs can increase job performance by balancing their work and personal life. The impact of SMEs on employee work-life balance and performance is a fascinating topic. As a result, work-life balance will have a bigger impact on the organization’s overall performance.

Limitation and Future Research

We propose that this research be expanded into a longitudinal study in the future, providing a greater grasp of the issue. However, the findings may not be generalizable, and the results must be interpreted in light of the evolving context and economic conditions in which the study was done. Additionally, future studies should look into religiosity as a moderator of the relationship between WLB and job satisfaction and performance. It’s important to think about becoming a moderator since employees who have a strong understanding of religion and put it into practice have a good sense of self-control. It could have a different effect when attempting to explain the link between work-life balance and job performance. Stress and anxiety are one of the most essential factors to consider when attempting to explain the link between WLB and job performance. Many employees may feel stressed and anxious about their professional and personal development while working in SMEs. As a result, as moderators in this association, it may be an important aspect to investigate in future research. Finally, future research should look at deviant behavior as a result of work-life balance and job satisfaction. Employees with a poor work-life balance and dissatisfaction are more likely to engage in deviant behavior.

Data Availability Statement

Data will be provided by the first author upon request.

Author Contributions

All authors listed have made a substantial, direct, and intellectual contribution to the work, and approved it for publication.

Conflict of Interest

The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Publisher’s Note

All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article, or claim that may be made by its manufacturer, is not guaranteed or endorsed by the publisher.

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Keywords : work-life balance, job satisfaction, job performance, family-supportive supervisor behaviors, Indonesia

Citation: Susanto P, Hoque ME, Jannat T, Emely B, Zona MA and Islam MA (2022) Work-Life Balance, Job Satisfaction, and Job Performance of SMEs Employees: The Moderating Role of Family-Supportive Supervisor Behaviors. Front. Psychol. 13:906876. doi: 10.3389/fpsyg.2022.906876

Received: 29 March 2022; Accepted: 27 April 2022; Published: 21 June 2022.

Reviewed by:

Copyright © 2022 Susanto, Hoque, Jannat, Emely, Zona and Islam. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) . The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

*Correspondence: Mohammad Enamul Hoque, [email protected]

† These authors have contributed equally to this work and share first authorship

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Employee psychological well-being and job performance: exploring mediating and moderating mechanisms

International Journal of Organizational Analysis

ISSN : 1934-8835

Article publication date: 12 August 2020

Issue publication date: 7 May 2021

Given the importance of employee psychological well-being to job performance, this study aims to investigate the mediating role of affective commitment between psychological well-being and job performance while considering the moderating role of job insecurity on psychological well-being and affective commitment relationship.

Design/methodology/approach

The data were gathered from employees working in cellular companies of Pakistan using paper-and-pencil surveys. A total of 280 responses were received. Hypotheses were tested using structural equation modeling technique and Hayes’s Model 1.

Findings suggest that affective commitment mediates the association between psychological well-being (hedonic and eudaimonic) and employee job performance. In addition, perceived job insecurity buffers the association of psychological well-being (hedonic and eudaimonic) and affective commitment.

Practical implications

The study results suggest that fostering employee psychological well-being may be advantageous for the organization. However, if interventions aimed at ensuring job security are not made, it may result in adverse employee work-related attitudes and behaviors.

Originality/value

The study extends the current literature on employee well-being in two ways. First, by examining psychological well-being in terms of hedonic and eudaimonic well-being with employee work-related attitude and behavior. Second, by highlighting the prominent role played by perceived job insecurity in explaining some of these relationships.

  • Psychological well-being
  • Affective commitment
  • Job insecurity
  • Job performance
  • Eudaimonic wellbeing
  • Hedonic wellbeing

Kundi, Y.M. , Aboramadan, M. , Elhamalawi, E.M.I. and Shahid, S. (2021), "Employee psychological well-being and job performance: exploring mediating and moderating mechanisms", International Journal of Organizational Analysis , Vol. 29 No. 3, pp. 736-754. https://doi.org/10.1108/IJOA-05-2020-2204

Emerald Publishing Limited

Copyright © 2020, Yasir Mansoor Kundi, Mohammed Aboramadan, Eissa M.I. Elhamalawi and Subhan Shahid.

Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

1. Introduction

Does the employee well-being have important implications both at work and for other aspects of an employees’ life? Of course! For years, we have known that they impact life at work and a plethora of research has examined the impact of employee well-being on work outcomes (Karapinar et al. , 2019 ; Turban and Yan, 2016 ). What is less understood is how employee well-being impacts job performance. Evidence suggests that employee health and well-being are among the most critical factors for organizational success and performance (Bakker et al. , 2019 ; Turban and Yan, 2016 ). Several studies have documented that employee well-being leads to various individual and organizational outcomes such as increased organizational performance and productivity (Hewett et al. , 2018 ), customer satisfaction (Sharma et al. , 2016 ), employee engagement (Tisu et al. , 2020 ) and organizational citizenship behavior (OCB; Mousa et al. , 2020 ).

The organizations’ performance and productivity are tied to the performance of its employees (Shin and Konrad, 2017 ). Much evidence has shown the value of employee job performance (i.e. the measurable actions, behaviors and outcomes that employee engages in or bring about which are linked with and contribute to organizational goals; Viswesvaran and Ones, 2017 ) for organizational outcomes and success (Al Hammadi and Hussain, 2019 ; Shin and Konrad, 2017 ), which, in turn, has led scholars to seek to understand what drives employee performance. Personality traits (Tisu et al. , 2020 ), job conditions and organizational characteristics (Diamantidis and Chatzoglou, 2019 ) have all been identified as critical antecedents of employee job performance.

However, one important gap remains in current job performance research – namely, the role of psychological well-being in job performance (Hewett et al. , 2018 ). Although previous research has found happy workers to be more productive than less happy or unhappy workers (DiMaria et al. , 2020 ), a search of the literature revealed few studies on psychological well-being and job performance relationship (Salgado et al. , 2019 ; Turban and Yan, 2016 ). Also, very little is known about the processes that link psychological well-being to job performance. Only a narrow spectrum of well-being related antecedents of employee performance has been considered, especially in terms of psychological well-being. Enriching our understanding of the consequences and processes of psychological well-being in the workplace, the present study examines the relationship between psychological well-being and job performance in the workplace setting. Such knowledge will not only help managers to attain higher organizational performance during the uncertain times but will uncover how to keep employees happy and satisfied (DiMaria et al. , 2020 ).

Crucially, to advance job performance research, more work is needed to examine the relationship between employees’ psychological well-being and their job performance (Ismail et al. , 2019 ). As Salgado et al. (2019) elaborated, we need to consider how an employees’ well-being affects ones’ performance at work. In an attempt to fill this gap in the literature, the present study seeks to advance job performance research by linking ones’ psychological well-being in terms of hedonic and eudaimonic well-being to ones’ job performance. Hedonic well-being refers to the happiness achieved through experiences of pleasure and enjoyment, while eudaimonic well-being refers to the happiness achieved through experiences of meaning and purpose (Huta, 2016 ; Rahmani et al. , 2018 ). We argue that employees with high levels of psychological well-being will perform well as compared to those having lower levels of psychological well-being. We connect this psychological well-being-job performance process through an employee affective commitment (employees’ perceptions of their emotional attachment to or identification with their organization; Allen and Meyer, 1996 ) – by treating it as a mediating variable between well-being-performance relationship.

Additionally, we also examine the moderating role of perceived job insecurity in the well-being-performance relationship. Perceived job insecurity refers to has been defined as the perception of being threatened by job loss or an overall concern about the continued existence of the job in the future (De Witte et al. , 2015 ). There is evidence that perceived job insecurity diminishes employees’ level of satisfaction and happiness and may lead to adverse job-related outcomes such as decreased work engagement (Karatepe et al. , 2020 ), deviant behavior (Soomro et al. , 2020 ) and reduced employee performance (Piccoli et al. , 2017 ). Thus, addressing the gap mentioned above, this study has two-fold objectives; First, to examine how the path between psychological well-being and job performance is mediated through employee affective commitment. The reason to inquire about this path is that well-being is associated with an employees’ happiness, pleasure and personal growth (Ismail et al. , 2019 ). Therefore, higher the well-being, higher will be the employees’ affective commitment, which, in turn, will lead to enhanced job performance. The second objective is to empirically test the moderating effects of perceived job insecurity on employees’ emotional attachment with their organizations. Thus, we propose that higher job insecurity may reduce the well-being of employees and their interaction may result in lowering employees’ emotional attachment with their organization.

The present study brings together employee well-being and performance literature and contributes to these research areas in two ways. First, we contribute to this line of inquiry by investigating the direct and indirect crossover from hedonic well-being and eudaimonic well-being to employees’ job performance. We propose that psychological well-being (hedonic and eudaimonic) influence job performance through employee affective commitment. Second, prior research shows that the effect of well-being varies across individuals indicating the presence of possible moderators influencing the relationship between employee well-being and job outcomes (Lee, 2019 ). We, therefore, extend the previous literature by proposing and demonstrating the general possibility that perceived job insecurity might moderate the relationship of psychological well-being (hedonic and eudaimonic) and affective commitment. While there is evidence that perceived job insecurity influence employees’ affective commitment (Schumacher et al. , 2016 ), what is not yet clear is the impact of perceived job insecurity on psychological well-being − affective commitment relationship. The proposed research model is depicted in Figure 1 .

2. Hypotheses development

2.1 psychological well-being and affective commitment.

Well-being is a broad concept that refers to individuals’ valued experience (Bandura, 1986 ) in which they become more effective in their work and other activities (Huang et al. , 2016 ). According to Diener (2009) , well-being as a subjective term, which describes people’s happiness, the fulfillment of wishes, satisfaction, abilities and task accomplishments. Employee well-being is further categorized into two types, namely, hedonic well-being and eudaimonic well-being (Ballesteros-Leiva et al. , 2017 ). Compton et al. (1996) investigated 18 scales that assess employee well-being and found that all the scales are categorized into two broad categories, namely, subjective well-being and personal growth. The former is referred to as hedonic well-being (Ryan and Deci, 2000 ) whereas, the latter is referred to as eudaimonic well-being (Waterman, 1993 ).

Hedonic well-being is based on people’s cognitive component (i.e. people’s conscious assessment of all aspects of their life; Diener et al. , 1985 ) and affective component (i.e. people’s feelings that resulted because of experiencing positive or negative emotions in reaction to life; Ballesteros-Leiva et al. , 2017 ). In contrast, eudaimonic well-being describes people’s true nature and realization of their actual potential (Waterman, 1993 ). Eudaimonic well-being corresponds to happy life based upon ones’ self-reliance and self-truth (Ballesteros-Leiva et al. , 2017 ). Diener et al. (1985) argued that hedonic well-being focuses on happiness and has a more positive affect and greater life satisfaction, and focuses on pleasure, happiness and positive emotions (Ryan and Deci, 2000 ; Ryff, 2018 ). Contrarily, eudaimonic well-being is different from hedonic well-being as it focuses on true self and personal growth (Waterman, 1993 ), recognition for ones’ optimal ability and mastery ( Ryff, 2018 ). In the past, it has been found that hedonic well-being and eudaimonic well-being are relatively correlated with each other but are distinct concepts (Sheldon et al. , 2018 ).

To date, previous research has measured employee psychological well-being with different indicators such as thriving at work (Bakker et al. , 2019 ), life satisfaction (Clark et al. , 2019 ) and social support (Cai et al. , 2020 ) or general physical or psychological health (Grey et al. , 2018 ). Very limited studies have measured psychological well-being with hedonic and eudaimonic well-being, which warrants further exploration (Ballesteros-Leiva et al. , 2017 ). Therefore, this study assesses employee psychological well-being based upon two validated measures, namely, hedonic well-being (people’s satisfaction with life in general) and eudaimonic well-being (people’s personal accomplishment feelings).

Employee well-being has received some attention in organization studies (Huang et al. , 2016 ). Prior research has argued that happier and healthier employees increase their effort, performance and productivity (Huang et al. , 2016 ). Similarly, research has documented that employee well-being has a positive influence on employee work-related attitudes and behaviors such as, increasing OCB (Mousa et al. , 2020 ), as well as job performance (Magnier-Watanabe et al. , 2017 ) and decreasing employees’ work-family conflict (Karapinar et al. , 2019 ) and absenteeism (Schaumberg and Flynn, 2017 ). Although there is evidence that employee well-being positively influences employee work-related attitudes, less is known about the relationship between psychological well-being (hedonic and eudaimonic) and employee affective commitment (Pan et al. , 2018 ; Semedo et al. , 2019 ). Moreover, the existing literature indicated that employee affective commitment is either used as an antecedent or an outcome variable of employee well-being (Semedo et al. , 2019 ; Ryff, 2018 ). However, affective commitment as an outcome variable of employee well-being has gained less scholarly attention, which warrants further investigation. Therefore, in the present study, we seek to examine employee affective commitment as an outcome variable of employee psychological well-being because employees who are happy and satisfied in their lives are more likely to be attached to their organizations (Semedo et al. , 2019 ).

Hedonic well-being positively predicts employee affective commitment.

Eudaimonic well-being positively predicts employee affective commitment.

2.2 Affective commitment and job performance

The concept of organizational commitment was first initiated by sit-bet theory in the early 1960s (Becker, 1960 ). Organizational commitment is defined as the psychological connection of employees to the organization and involvement in it (Cooper-Hakim and Viswesvaran, 2005 ). It is also defined as the belief of an individual in his or her organizational norms (Hackett et al. , 2001 ); the loyalty of an employee toward the organization (Cooper-Hakim and Viswesvaran, 2005 ) and willingness of an employee to participate in organizational duties (Williams and Anderson, 1991 ).

Organizational commitment is further categorized into three correlated but distinct categories (Meyer et al. , 1993 ), known as affective, normative and continuance. In affective commitment, employees are emotionally attached to their organization. In normative commitment, employees remain committed to their organizations due to the sense of obligation to serve. While in continuance commitment, employees remain committed to their organization because of the costs associated with leaving the organization (Allen and Meyer, 1990 , p. 2). Among the dimensions of organizational commitment, affective commitment has been found to have the most substantial influence on organizational outcomes (Meyer and Herscovitch, 2001 ). It is a better predictor of OCB (Paul et al. , 2019 ), low turnover intention (Kundi et al. , 2018 ) and job performance (Jain and Sullivan, 2019 ).

Affective commitment positively predict employee job performance.

2.3 Affective commitment as a mediator

Many studies had used the construct of affective commitment as an independent variable, mediator and moderating variable because of its importance as an effective determinant of work outcomes such as low turnover intention, job satisfaction and job performance (Jain and Sullivan, 2019 ; Kundi et al. , 2018 ). There is very little published research on employee well-being and affective commitment relationship. Surprisingly, the effects of employee psychological well-being in terms of hedonic well-being and eudaimonic well-being have not been closely examined.

Affective commitment mediates the association between hedonic well-being and job performance.

Affective commitment mediates the association between eudaimonic well-being and job performance.

2.4 The moderating role of job insecurity

Job insecurity is gaining importance because of the change in organizational structure as it is becoming flattered, change in the nature of the job as it requires a diverse skill set and change in human resource (HR) practices as more temporary workers are hired nowadays (Piccoli et al. , 2017 ; Kundi et al. , 2018 ). Such changes have caused several adverse outcomes such as job dissatisfaction (Bouzari and Karatepe, 2018 ), unethical pro-organizational behavior (Ghosh, 2017 ), poor performance (Piccoli et al. , 2017 ), anxiety and lack of commitment (Wang et al. , 2018 ).

Lack of harmony on the definition of job insecurity can be found among the researchers. However, a majority of them acknowledge that job insecurity is subjective and can be referred to as a subjective perception (Wang et al. , 2018 ). Furthermore, job insecurity is described as the perception of an employee regarding the menace of losing a job in the near future (De Witte et al. , 2015 ). When there is job insecurity, employees experience a sense of threat to the continuance and stability of their jobs (Shoss, 2017 ).

Although job insecurity has been found to influence employee work-related attitudes, less is known about its effects on behavioral outcomes (Piccoli et al. , 2017 ). As maintained by the social exchange theory, behaviors are the result of an exchange process (Blau, 1964 ). Furthermore, these exchanges can be either tangible or socio-emotional aspects of the exchange process (Kundi et al. , 2018 ). Employees who perceive and feel that their organization is providing them job security and taking care of their well-being will turn to be more committed to their organization (Kundi et al. , 2018 ; Wang et al. , 2018 ). Much research has found that employees who feel job security are happier and satisfied with their lives (Shoss, 2017 ; De Witte et al. , 2015 ) and are more committed to their work and organization (Bouzari and Karatepe, 2018 ; Wang et al. , 2018 ). Shoss (2017) conducted a thorough study on job insecurity and found that job insecurity can cause severe adverse consequences for both the employees and organizations.

Employees who are uncertain about their jobs (i.e. high level of perceived job insecurity) are less committed with their organizations.

Employees with temporary job contracts were found to have low organizational committed as compared to the employees with permanent job contracts.

Such a difference between temporary and permanent job contract holders was mainly due to the perceived job insecurity by the temporary job contract holders.

Job insecurity will moderate the relationship between hedonic well-being, eudaimonic well-being and affective organizational commitment.

3.1 Sample and procedure

The data for this study came from a survey of Pakistani employees, who worked in five private telecommunication organizations (Mobilink, Telenor, Ufone, Zong and Warid). These five companies were targeted because they are the largest and highly competitive companies in Pakistan. Moreover, the telecom sector is a private sector where jobs are temporary or contractual (Kundi et al. , 2018 ). Hence, the investigation of how employees’ perceptions of job insecurity influence their psychological well-being and its outcomes is highly relevant in this context. Studies exploring such a phenomenon are needed, particularly in the Pakistani context, to have a better insight and thereby strengthen the employee well-being and job performance literature.

Two of the authors had personal and professional contacts to gain access to these organizations. The paper-and-pencil method was used to gather the data. Questionnaires were distributed among 570 participants with a cover letter explaining the purpose of the study, noted that participation was voluntary, and provided assurances that their responses would be kept confidential and anonymous. After completion of the questionnaires, the surveys were collected the surveys on-site by one of the authors. As self-reported data often render itself to common method bias (CMB; Podsakoff et al. , 2012 ), we applied several procedural remedies such as reducing the ambiguity in the questions, ensuring respondent anonymity and confidentiality, separating of the predictor and criterion variable and randomizing the item order to limit this bias.

Of the 570 surveys distributed initially, 280 employees completed the survey form (response rate = 49%). According to Baruch and Holtom (2008) , the average response rate for studies at the individual level is 52.6% (SD = 19.7). Hence, our response rate meets the standard for a minimum acceptable response rate, which is 49%. Of the 280 respondents, 39% were female, their mean age was 35.6 years (SD = 5.22) and the average organizational tenure was 8.61 years (SD  =  4.21). The majority of the respondents had at least a bachelors’ degree (83 %). Respondents represented a variety of departments, including marketing (29%), customer services (26%), finance (20%), IT (13%) and HR (12%).

3.2 Measures

The survey was administered to the participants in English. English is the official language of correspondence for professional organizations in Pakistan (De Clercq et al. , 2019 ). All the constructs came from previous research and anchored on a five-point Likert scale ranging from 1 = Strongly disagree to 5 = Strongly agree.

Psychological well-being. We measured employee psychological well-being with two sub-dimensions, namely, hedonic well-being and eudaimonic well-being. Hedonic well-being was measured using five items (Diener et al. , 1985 ). A sample item is “my life conditions are excellent” ( α = 0.86). Eudaimonic well-being was measured using 21 items (Waterman et al. , 2010 ), of which seven items were reverse-scored due to its negative nature. Sample items are “I feel that I understand what I was meant to do in my life” and “my life is centered around a set of core beliefs that give meaning to my life” ( α = 0.81).

Affective commitment. The affective commitment was measured using a six-item inventory developed by Allen and Meyer (1990) . The sample items are “my organization inspires me to put forth my best effort” and “I think that I will be able to continue working here” ( α = 0.91).

Job insecurity. Job insecurity was measured using a five-item inventory developed by Chirumbolo et al. (2015) . The sample item is “I fear I will lose my job” ( α = 0.87).

Job performance . We measured employee job performance with the seven-item inventory developed by Williams and Anderson (1991) . The sample items are “I do fulfill my responsibilities, which are mentioned in the job description” and “I try to work as hard as possible” ( α = 0.87).

Controls. We controlled for respondents’ age (assessed in years), gender (1 = male, 2 = female) and organizational tenure (assessed in years) because prior research (Alessandri et al. , 2019 ; Edgar et al. , 2020 ) has found significant effects of these variables on employees’ job performance.

4.1 Descriptive statistics

Table 1 presents the means, standard deviations and correlations among study variables.

4.2 Construct validity

Before testing hypotheses, we conducted a series of confirmatory factor analyzes (CFAs) using AMOS 22.0 to examine the distinctiveness of our study variables. Following the guidelines of Hu and Bentler (1999) , model fitness was assessed with following fit indices; comparative fit index (CFI), root mean square error of approximation (RMSEA) and standardized root mean square residual (SRMR). We used a parceling technique (Little et al. , 2002 ) to ensure item to sample size ratio. According to Williams and O’Boyle (2008) , the item-parceling approach is widely used in HRM research, which allows estimation of fewer model parameters and subsequently leads to the optimal variable to sample size ratio and stable parameter estimates (Wang and Wang, 2019 ). Based on preliminary CFAs, we combined the highest item loading with the lowest item loading to create parcels that were equally balanced in terms of their difficulty and discrimination. Item-parceling was done only for the construct of eudaimonic well-being as it entailed a large number of items (i.e. 21 items). Accordingly, we made five parcels for the eudaimonic well-being construct (Waterman et al. , 2010 ).

As shown in Table 2 , the CFA results revealed that the baseline five‐factor model (hedonic well-being, eudaimonic well-being, job insecurity, affective commitment and job performance) was significant ( χ 2 = 377.11, df = 199, CFI = 0.971, RMSEA = 0.034 and SRMR = 0.044) and better than the alternate models, including a four‐factor model in which hedonic well-being and eudaimonic well-being were considered as one construct (Δ χ 2 = 203.056, Δdf = 6), a three-factor model in which hedonic well-being, eudaimonic well-being and affective commitment were loaded on one construct (Δ χ 2 = 308.99, Δdf = 8) and a one‐factor model in which all items loaded on one construct (Δ χ 2 = 560.77, Δdf = 11). The results, therefore, provided support for the distinctive nature of our study variables.

To ensure the validity of our measures, we first examined the convergent validity through the average variance extracted (AVE). We found AVE scores higher than the threshold value of 0.5 ( Table 1 ; Fornell and Larcker, 1981 ), supporting the convergent validity of our constructs. We also estimated discriminant validity by comparing the AVE of each construct with the average shared variance (ASV), i.e. mean of the squared correlations among constructs ( Hair et al. , 2010 ). As expected, all the values of AVE were higher than the ASV constructs, thereby supporting discriminant validity ( Table 1 ).

4.3 Common method variance

Harman’s one-factor test.

CFA ( Podsakoff et al. , 2012 ).

Harman’s one-factor test showed five factors with eigenvalues of greater than 1.0 accounted for 69.12% of the variance in the exogenous and endogenous variables. The results of CFA showed that the single-factor model did not fit the data well ( χ 2 = 937.88, df = 210, CFI = 0.642, RMSEA = 0.136, SRMR = 0.122). These tests showed that CMV was not a major issue in this study.

4.4 Hypotheses testing

The hypotheses pertaining to mediation were tested using a structural model in AMOS 22.0 ( Figure 2 ), which had an acceptable goodness of fit ( χ 2 = 298.01, df = 175, CFI = 0.97, RMSEA = 0.04 and SRMR = 0.04). Hypotheses about moderation were tested in SPSS (25 th edition) using PROCESS Model I ( Hayes, 2017 ; Table 3 ).

H1a and H1b suggested that hedonic well-being and eudaimonic well-being positively relate to employee affective commitment. According to Figure 2 , the results indicate that hedonic well-being ( β = 0.26, p < 0.01) and eudaimonic well-being ( β = 0.32, p < 0.01) are positively related to employee affective commitment. Taken together, these two findings provide support for H1a and H1b . In H2 , we predicted that employee affective commitment would positively associate with employee job performance. As seen in Figure 2 , employee affective commitment positively predicted employee job performance ( β = 0.41, p < 0.01), supporting H2 .

H3a and H3b suggested that employee affective commitment mediates the relationship between hedonic and eudaimonic well-being and employee job performance. According to Figure 2 , the results indicate that hedonic well-being is positively related to employee job performance via employee affective commitment ( β = 0.11, 95% CI = 0.09; 0.23). Similarly, eudaimonic well-being is positively related to employee job performance via employee affective commitment ( β = 0.15, 95% CI = 0.12; 0.35), supporting H3a and H3b .

Hedonic well-being.

Eudaimonic well-being and employee affective commitment.

In support of H4a , our results ( Table 3 ) revealed a negative and significant interaction effect between hedonic well-being and job insecurity on employee affective commitment ( β = −0.12, p < 0.05). The pattern of this interaction was consistent with our hypothesized direction; the positive relationship between hedonic well-being and employee affective commitment was weaker in the presence of high versus low job insecurity ( Figure 3 ). Likewise, the interaction effect between eudaimonic well-being and job insecurity on employee affective commitment was negatively significant ( β = −0.28, p < 0.01). The pattern of this interaction was consistent with our hypothesized direction; the positive relationship between eudaimonic well-being and employee affective commitment was weaker in the presence of high versus low job insecuritay ( Figure 4 ). Thus, H4a and H4b were supported. The pattern of these interactions was consistent with our hypothesized direction; the positive relationship of hedonic well-being and eudaimonic well-being with an employee affective commitment were weaker in the presence of high versus low perceived job insecurity.

5. Discussion

The present research examined the direct and indirect crossover from psychological well-being (hedonic and eudaimonic) to job performance through employee affective commitment and the moderating role of job insecurity between psychological well-being and affective commitment relationship. The results revealed that both hedonic well-being and eudaimonic well-being has a direct and indirect effect on employee job performance. Employee affective commitment was found to be a potential mediating mechanism (explaining partial variance) in the relationship between psychological well-being and job performance. Findings regarding the buffering role of job insecurity revealed that job insecurity buffers the positive relationship between psychological well-being and employee affective commitment such that higher the job insecurity, lower will be employee affective commitment. The findings generally highlight and reinforce that perceived job insecurity can be detrimental for both employees’ well-being and job-related behaviors (Soomro et al. , 2020 ).

5.1 Theoretical implications

The present study offers several contributions to employee well-being and job performance literature. First, the present research extends the employee well-being literature by investigating employee affective commitment as a key mechanism through which psychological well-being (hedonic and eudaimonic) influences employees’ job performance. In line with SDT, we found that both hedonic well-being and eudaimonic well-being enhanced employees’ affective commitment, which, in turn, led them to perform better in their jobs. Our study addresses recent calls for research to understand better how psychological well-being influence employees’ performance at work (Huang et al. , 2016 ), and adds to a growing body of work, which confirms the importance of psychological well-being in promoting work-related attitudes and behaviors (Devonish, 2016 ; Hewett et al. , 2018 ; Ismail et al. , 2019 ). Further, we have extended the literature on employee affective commitment, highlighting that psychological well-being is an important antecedent of employee’ affective commitment and thereby confirming previous research by Aboramadan et al. (2020) on the links between affective commitment and job performance.

Second, our results provide empirical support for the efficacy of examining the different dimensions of employee well-being, i.e. hedonic well-being and eudaimonic well-being as opposed to an overall index of well-being at work. Specifically, our results revealed that both hedonic well-being and eudaimonic well-being boost both employees’ attachment with his or her organization and job performance (Hewett et al. , 2018 ; Luu, 2019 ). Among the indicators of psychological well-being, eudaimonic well-being (i.e. realization and fulfillment of ones’ true nature) was found to have more influence on employee affective commitment and job performance as compared to hedonic well-being (i.e. state of happiness and sense of flourishing in life). Therefore, employees who experience high levels of psychological well-being are likely to be more attached to their employer, which, in turn, boosts their job performance.

Third, job insecurity is considered as an important work-related stressor (Schumacher et al. , 2016 ). However, the moderating role of job insecurity on the relationship between psychological well-being and affective commitment has not been considered by the previous research. Based on social exchange theory (Blau, 1964 ), we expected job insecurity to buffer the positive relationship between the psychological well-being and affective commitment. The results showed that employees with high levels of perceived job insecurity reduce the positive relationship of psychological well-being (hedonic and eudaimonic) and affective commitment. This finding is consistent with previous empirical evidence supporting the adverse role of perceived job insecurity in reducing employees’ belongingness with their organization (Jiang and Lavaysse, 2018 ). There is strong empirical evidence (Qian et al. , 2019 ; Schumacher et al. , 2016 ) that employee attitudes and health are negatively affected by increasing levels of job insecurity. Schumacher et al. (2016) suggested in an elaborate explanation of the social exchange theory that the constant worrying about the possibility of losing ones’ job promotes psychological stress and feelings of unfairness, which, in turn, affects employees’ affective commitment. Hence, employees’ psychological well-being and affective commitment are heavily influenced by the experience of high job insecurity.

5.2 Practical implications

Our study has several implications. First and foremost, this study will help managers in understanding the importance of employees’ psychological well-being for work-related attitudes and behavior. Based on our findings, managers need to understand how important psychological well-being is for employees’ organizational commitment and job performance. According to Hosie and Sevastos (2009) , several human resource-based interventions could foster employees’ psychological well-being, such as selecting and placing employees into appropriate positions, ensuring a friendly work environment and providing training that improves employees’ mental health and help them to manage their perceptions positively.

Besides, managers should provide their employees with opportunities to use their full potential, which will increase employees’ sense of autonomy and overall well-being (Sharma et al. , 2017 ). By promoting employee well-being in the workplace, managers can contribute to developing a workforce, which will be committed to their organizations and will have better job performance. However, based on our findings, in the presence of job insecurity, organizations spending on interventions to improve employees’ psychological well-being, organizational commitment and job performance might go in vain. In other words, organizations should ensure that employees feel a sense of job security or else the returns on such interventions could be nullified.

Finally, as organizations operate in a volatile and highly competitive environment, it is and will be difficult for them to provide high levels of job security to their employees, especially in developing countries such as Pakistan (Soomro et al. , 2020 ). Given the fact that job insecurity leads to cause adverse employee psychological well-being and affective commitment, managers must be attentive to subordinates’ perceptions of job insecurity and adverse psychological well-being and take action to prevent harmful consequences (Ma et al. , 2019 ). Organizations should try to avoid downsizings, layoffs and other types of structural changes, respectively, and find ways to boost employees’ perceptions of job security despite those changes. If this is not possible, i.e. the organization not able to provide job security, this should be communicated to employees honestly and early.

5.3 Limitations and future studies

There are several limitations to this study. First, we measured our research variables by using a self-report survey at a single point of time, which may result in CMB. We used various procedural remedies to mitigate the potential for CMB and conducted CFA as per the guidelines of Podsakoff et al. (2012) to ensure that CMV was unlikely to be an issue in our study. However, future research may rely on supervisors rated employees’ job performance or collect data at different time points to avoid the threat of such bias.

Second, the sample of this study consisted of employees working in cellular companies of Pakistan with different demographic characteristics and occupational backgrounds; thus, the generalizability of our findings to other industries or sectors is yet to be established. Future research should test our research model in various industries and cultures.

A final limitation pertains to the selection of a moderating variable. As this study was conducted in Pakistan, contextual factors such as the perceived threat to terrorism, law and order situation or perceived organizational injustice might also influence the psychological well-being of employees working in Pakistan (Jahanzeb et al. , 2020 ; Sarwar et al. , 2020 ). Future studies could consider the moderating role of such external factors in the relationship between employee psychological well-being, affective commitment and job performance.

6. Conclusion

This study proposed a framework to understand the relationship between employee psychological well-being, affective commitment and job performance. It also described how psychological well-being influences job performance. Additionally, this study examined the moderating role of perceived job insecurity on psychological well-being and affective commitment relationship. The results revealed that employee psychological well-being (hedonic and eudaimonic) has beneficial effects on employee affective commitment, which, in turn, enhance their job performance. Moreover, the results indicated that perceived job insecurity has ill effects on employee affective commitment, especially when the employee has high levels of perceived job insecurity.

thesis on job satisfaction and employee performance

Research model

thesis on job satisfaction and employee performance

Structural model with standardized coefficients; N = 280

thesis on job satisfaction and employee performance

Interactive effect of hedonic well-being and job insecurity on employee affective commitment

thesis on job satisfaction and employee performance

Interactive effect of eudaimonic well-being and job insecurity on employee affective commitment

Descriptive statistics and correlations among of variables

* p < 0.05,

** p < 0.01; Unstandardized coefficients and average bootstrap estimates are stated; demographic variables are controlled; bootstrapping procedure [5,000 iterations, bias-corrected, 95% CI]

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Further reading

Sabella , A.R. , El-Far , M.T. and Eid , N.L. ( 2016 ), “ The effects of organizational and job characteristics on employees' organizational commitment in arts-and-culture organizations ”, International Journal of Organizational Analysis , Vol. 24 No. 5 , pp. 1002 - 1024 .

Acknowledgements

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Information and Communication Technology in Technical and Vocational Education and Training for Sustainable and Equal Opportunity pp 531–542 Cite as

Human Resource Management Practices Toward Job Satisfaction and Employee Intention to Leave Academic Institutions

  • P. Yukthamarani Permarupan 39 ,
  • Roselina Ahmad Saufi 39 ,
  • Samsidine Aidara 40 ,
  • Noorshella Binti Che Nawi 40 ,
  • Noor Raihani Binti Zainol 40 &
  • Braveena Jothi 40  
  • First Online: 24 February 2024

Part of the Technical and Vocational Education and Training: Issues, Concerns and Prospects book series (TVET,volume 38)

Given the rapidly changing environment and the rising trend of international competitiveness, maintaining and retaining talented and skilled academic employees are essential for the performance of university institutions. Since academic turnover is rising in the high education sector, academic institutions struggle to attract, maintain, and retain top-talented employees. In order to outperform competitors in the dynamic, unstable, and unpredictable academic environment, university institutions must manage their human resources effectively. Thus, the goal of this study is to ascertain how academic human resource management (HRM) practices affect employees’ intentions to leave, with job satisfaction acting as a mediator and external job opportunities as a moderator. Social exchange theory served as the study’s theoretical underpinning. Data were collected from 466 participants in an online survey using a cross-sectional research methodology, and the analysis was carried out using partial least structural equation modelling (PLS-SEM). The findings revealed that HRM practices were negatively related to academic employees’ intention to leave. Furthermore, the results of the study showed that job satisfaction significantly mediates the relationship between HRM practices and employee intention to leave. The outcomes also confirmed that job opportunity significantly moderates the relationship between employee intention to leave and job satisfaction. The findings lead to a coherent model of retention strategy that will be incredibly beneficial to academic HR professionals, policymakers and education management in creating and developing a long-term strategy plan for recruiting and retention.

  • Human resource management practices
  • Job opportunity
  • Job satisfaction
  • Intention to leave

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Permarupan, P.Y., Saufi, R.A., Aidara, S., Nawi, N.B.C., Zainol, N.R.B., Jothi, B. (2024). Human Resource Management Practices Toward Job Satisfaction and Employee Intention to Leave Academic Institutions. In: Khamis Hamdan, R., Hamdan, A., Alareeni, B., Khoury, R.E. (eds) Information and Communication Technology in Technical and Vocational Education and Training for Sustainable and Equal Opportunity. Technical and Vocational Education and Training: Issues, Concerns and Prospects, vol 38. Springer, Singapore. https://doi.org/10.1007/978-981-99-6909-8_47

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Proceedings of the International Conference on Applied Science and Technology on Social Science 2023 (iCAST-SS 2023)

Work Environment, Compensation and its Role towards Job Satisfaction and Employee Performance

This research is quantitative. The subjects of this research were all employees in the spatial planning Office at the Nunukan Public Works Office, with 20 respondents as the sample and population or what is called a saturation sampling. For data analysis, a model test was used using smartPLS version 3.0, which consists of Outer and Inner Model tests. Based on smartPLS, the validity test is carried out with an outer loading threshold of > 0.5 and AVE > 0.5, while the reliability test is carried out with a Composite reliability threshold of 0.7. Next, testing the hypothesis is carried out based on the output of the Path Coefficient by paying attention to the Original Sample values, T-statistics, and P Values. From the results of data management and analysis, it was found that the work environment variable influenced job satisfaction by 0.869 > T table (0.688), the work environment influenced employee performance by 5.399 > T-table (0.688), Compensation influenced job satisfaction by 1.351 > T-table (0.688), Compensation influenced employee performance by 4.522 > T table (0.688), job satisfaction influenced employee performance by 1.017 > T table (0.688), work environment simultaneously influenced job satisfaction and employee performance by 0.722 > T-table (0.688) and Compensation simultaneously influenced job satisfaction and employee performance by 0.922 > T-table (0.688).

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