Work-life balance and employee performance: the moderating role of compensation at PT New Living Indonesia
DOI:
https://doi.org/10.59651/digital.v17i3.483Keywords:
Compensation, Employee Performance, Structural Equation Modelling, Work Life BalanceAbstract
This study aims to examine the effect of work-life balance and compensation on employee performance and to investigate the moderating role of compensation in the relationship between work-life balance and employee performance. This study employed a quantitative research design using a survey approach. The population consisted of 82 employees of PT New Living Indonesia Tangerang, and saturated sampling was used, resulting in 82 respondents. Data were collected through a structured questionnaire and analyzed using Structural Equation Modeling (SEM) with AMOS. The moderating effect of compensation was examined using the Ping method. The results show that work-life balance has a positive and significant effect on employee performance, with a coefficient of β = 0.693 and p < 0.001. Compensation also has a positive and significant effect on employee performance, with a coefficient of β = 0.426 and p = 0.005. Furthermore, compensation significantly moderates the relationship between work-life balance and employee performance, with an interaction coefficient of β = 0.001 and p = 0.013. The positive moderation coefficient indicates that compensation strengthens the positive relationship between work-life balance and employee performance. These findings highlight the importance of maintaining employees’ work-life balance while providing fair and competitive compensation to support improved employee performance. The study contributes to the understanding of the role of compensation in strengthening the relationship between work-life balance and employee performance. Future research is encouraged to incorporate additional variables and broader samples across different organizational contexts to improve the generalizability of the findings.
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