The Role of Organizational Commitment in Mediating the Effect of Employee Engagement and Work-Life Balance on Employee Performance
Abstract:
This study aims to examine the effect of employee engagement and work-life balance on employee performance, both directly and indirectly through organizational commitment as a mediating variable, at Perumda Air Minum Panca Mahottama, Klungkung Regency. The study is motivated by several indications of suboptimal employee performance during the 2022–2024 period, including a high level of non-revenue water, unmet targets for new customer connections, and a high rate of unexplained employee absenteeism. The population consists of all 171 permanent employees of the company, all of whom were used as respondents through a saturated sampling technique. Data were collected using a Likert-scale questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with the assistance of SmartPLS. The strength of the mediating role was tested using the Variance Accounted For (VAF) method. The results show that employee engagement and work-life balance each have a positive and significant effect on both organizational commitment and employee performance; organizational commitment has a positive and significant effect on employee performance; and organizational commitment is proven to partially mediate the effect of employee engagement on employee performance (VAF = 50.9%) as well as the effect of work-life balance on employee performance (VAF = 37.0%). These findings emphasize the importance of jointly strengthening work engagement, work-life balance, and organizational commitment to optimize employee performance in a regional water utility company.
KeyWords:
Employee Engagement, Work-Life Balance, Organizational Commitment, Employee Performance.
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