Document 14544998

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The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 3, No. 6, June 2015
The Relevance of Work-life Balance
Programs in the Reduction of Work-life
Conflict and Turnover Intention in the
Business Process Outsourcing Industry:
A Structural Equation Model (SEM)
Christine N. Balunos*, Eleighn Grace Vanessa M. Castro**, Kristine Angeli J. Reyes***,
Anne Nicole P. Sabino**** & Kathlyn Renee M. Taiño*****
*College of Commerce and Business Administration, University of Santo Tomas, Manila, PHILIPPINES.
E-Mail: christinebalunos{at}gmail{dot}com
**College of Commerce and Business Administration, University of Santo Tomas, Manila, PHILIPPINES.
E-Mail: egvhang_ymc{at}yahoo{dot}com
***College of Commerce and Business Administration, University of Santo Tomas, Manila, PHILIPPINES.
E-Mail: kristineangelireyes{at}gmail{dot}com
****College of Commerce and Business Administration, University of Santo Tomas, Manila, PHILIPPINES.
E-Mail: annenicole.sabino{at}gmail{dot}com
*****College of Commerce and Business Administration, University of Santo Tomas, Manila, PHILIPPINES.
E-Mail: kathlyntaino{at}gmail{dot}com
Abstract—The research study aims to describe the causal relationship of the employee‟s frequent use of worklife balance programs in the reduction of work-life conflict and turnover intention through the use of Structural
Equation Modeling (SEM). 300 call center agents, aged 18 – 48 years old, from four different BPO companies
in the Philippines participated in the study. Data gathered generated a new model that provides evidence on the
relationships between the discovered dimensions of usage of work-life balance programs (Policy
Rationalization and Time Adjustment and Social Support) and the dimensions of work-life conflict (Job
Demands and Family Demands) and what dimensions affect turnover intention. This study serves as a clarion
to HR managers;, calling for the efforts in organizations to develop programs and policies pertaining to
employees‟ work life balance that focus on underlying matters that cause workers to have conflicts in their
work and personal life.
Keywords—Business Process Outsourcing Industry; Turnover Intention; Usage of Work-life Balance
Programs; Work-life Conflict.
Abbreviations—Business Process Outsourcing (BPO); Structural Equation Model (SEM); Work-Life Balance
(WLB); Work-Life Conflict (WLC).
I.
E
INTRODUCTION
MPLOYEE turnover is a growing concern for many
organizations herein the Philippines. According to the
Labor Turnover Statistics Survey published in January
2014 by the Bureau of Labor and Employment Statistics [28],
labor turnover may be in the form of accession or separation
wherein separation rate is a more notable issue because it
would be prejudicial to the organization or industry where it
is high. In addition, the statistics showed that employeeinitiated separations or quits are greater than layoffs
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especially in accommodation and food service industry
(5.15% vs 4.94%), real estate activities (5.04% vs 1.33%),
information communication companies (4.52% vs 1.62%)
and administrative and support service activities of the BPO
industry (4.46% vs 2.11%).
The Philippines has been one of the significant BPO
providers in Asia along with India, the Republic of China,
Malaysia, Singapore, Thailand and Vietnam. The assumption
of the Bureau of Local Employment as stated in the Industry
Career Guide in 2011 is that “the IT-BPO industry will be
one of the most dynamic industries in the future because of
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The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 3, No. 6, June 2015
the increasing share of the services sector in the economy of
many countries. In fact, the Philippine IT-BPO industry sees
its revenues reaching $16B in 2003 or $2.6B higher than the
projected revenues of $13.6B for 2012”. This industry has
grown so fast since it started in the year 2001 making it one
of the chief economic drivers in the country. “Today, the
Philippines is the world‟s leading call center destination,
beating out India, while Manila was just named the world‟s
3rd top BPO destination, according to a Tholons 2013
Survey. After growing 20% in 2012, the BPO industry of the
Philippines is estimated to hit revenues up to $25 billion by
2016.”[The Philippine Star by Romulo, 27].
The growth of the BPO industry in the Philippines was
further highlighted by the Filipinos‟ computer expertise and
ability to speak in English fluently. “The Philippines enjoys a
high literacy rate (97% in the National Capital Region; 89%
in the country) and is a popular destination among call center
operators due to the fact that English is widely spoken”
(NeoIT 2004), as cited in the study of Magtibay-Ramos et al.,
[10]. Abara & Heo [22] also stated that the Filipino people‟s
neutral English accent and competency in business English
make the country highly competitive in the market making it
the primary choice of investors.
Apart from the initial language proficiency and computer
literacy qualifications required from employees, the demands
of companies in the BPO industry also include workloads that
are difficult and demanding in relation to time, effort, and
commitment. “BPO organizations are inclined to high
performance and high productivity work team principles and
tools; they subscribe to inclination towards operational and
service excellence – promoting initiatives like total quality
standards, Six Sigma, Customer Operations Performance
Center (COPC) standards, Capability Maturity Model
Integration (CMMI), and the like” [Meenakshi &
Bhuvaneshwari, 25]. As discussed by Vanishree [21], “there
are excessive targets to be achieved… but at the same time
the quality of the service needs to be maintained… all this
may lead to burnout and stress among the employees.”
“Maintaining work-life balance has been the focus of
industries‟ Human Resource practitioners amidst the
demanding nature of work and the workers‟ personal
endeavors in the age of information and technology.”
[Meenakshi & Bhuvaneshwari, 25]. The study emphasized
that people connectivity through available technology
highlights works despite of personal limitations. Thus, when
employees fail to keep their work and personal life stabilized,
work-life conflicts start to manifest. “As role conflict rose,
the commitment level dropped” [Lambert & Hogan, 9].
Additionally, as stated in the same study, organizational
commitment had the greatest impact on turnover intention,
followed closely by job satisfaction. In order for the
employees to avoid work-life conflict and decrease in
organizational commitment, work-life balance must take
place. Keeping and maintaining the balance between the
demands of work and family are challenges that add up to an
employee‟s burdens. Vanishree [21] supported the contention
that the flexibility of work alleviates stress and helps in better
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time management. She added that work-life balance requires
cooperation and coordination through different levels
(national, governmental, organizational, as well as the
individual level).
In order for their employees to cope with the transpiring
stress from the demands of work, companies in the BPO
industry provide the employees with different programs such
as telecommuting and flexible working arrangements. This
provision for flexible work is claimed to be part of the large
context of work-life balance [Wynes, 20].
The purpose of the present study is to develop a model
that describes a causal relationship among work-life balance
programs, work-life conflict, and turnover intention
particularly among a select group of call center agents in
NCR. The results of this study can expectedly help the
business owners and HR managers in call center agencies to
better manage their employee‟s turnover intention.
II.
THEORETICAL BACKGROUND
2.1. Literature Review
Work-life balance (WLB) is having the capacity to commit to
your responsibilities and enjoy your working career but still
be able to manage your family life. Various studies reveal
differing views on work-life balance. On one hand, a research
by Beauregard & Henry [7] argued that there is no relation
whatsoever between work-life balance practices and worklife conflict. On the other hand, the study of Cementina et al.,
[3] stated that work-life balance programs can have positive
outcomes on the individual as well as the organization. He
also cited literatures which stated that “Employees who
participated in these programs (WLB programs) expressed
less family conflict and experienced less stress and expressed
lower intentions to quit their jobs” supporting his claim
(Scandura & Lankau, 1997; Aryee, Luk& Stone, 1998;
Gorver& Crooker, 1995; Honda-Howard & Homma, 2001).
Additionally, (Felstead et al. 2002) as cited in Pradana &
Salehudin [26], “stated that this perception of imbalance
between work and personal life may lead to frustration and
increased desire to reduce the perceived cause of such
conflict. This desire may often lead to employee
resignations.”
Surveys of literature indicate the connection of different
predictors such as job satisfaction, work-life balance and
organizational commitment to the turnover intention of the
employees. Studies show that as long as employees are
satisfied with their jobs and are committed to the
organization, they tend to have lower intentions in leaving the
company and vice- versa. Job satisfaction [Lambert & Hogan,
9; Regts & Molleman, 19; Heilmann et al., 8; Kanwar et al.,
16] and organizational commitment [Lambert & Hogan, 9;
Heilmann et al., 8; Kanwar et al., 16; Kumar & Eng, 17] are
found to be the most common predictors of the increase and
decrease of turnover intent of employees. The study
conducted by Bothma & Roodt [23], Lacity, Lyer, and
Rudramuniyaiah (2008) stated that “turnover intention is the
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The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 3, No. 6, June 2015
extent to which an employee plans to leave the organization”.
This is similar to what Stovel and Bontis (2002) commented
in the research study of Mrope & Bangi [29], that involuntary
turnover refers to the discharge of the employees.
2.2. Theoretical Framework
The theoretical anchorages of this paper are Work/Family
Border Theory and Spillover Theory. Work/Family Border
Theory was defined by Sue Campbell Clark (2000), as cited
in the research study of McMillan et al., [14], as a new theory
designed to remedy the criticisms and gaps of previous
theories on work and family. It is a theory that explains how
individuals manage and negotiate the work and family
spheres and the borders between them in order to attain
balance. Central to this theory is the idea that 'work' and
„family‟ constitute different domains or spheres which
influence each other. Though many aspects of work and
home are difficult to alter, individuals can shape the nature of
the work and home domains to some degree, and the borders
and bridges between them, in order to create a desired
balance. Balance here refers to satisfaction and good
functioning at work and at home, with a minimum of role
conflict.
The Work/Family Border Theory describes in its
development why conflict in work and life exists and
provides a framework that encourages both the organization
and its employees to use tools to strike a better balance in
their work and family lives, to help understand that in order
for work-life balance to be achieved the workplaces of
employees should be most likely their homes in terms of
values and culture. It is also dependent upon the
organizations to give their employees a flexible workplace
and work-life policies.
The Spillover Theory (Staines, 1980) as cited in Edralin
[24], suggests that there is a similarity between what occurs
in the work environment and what occurs in the family
environment. According to this theory, the employees‟
effectiveness as a properly working part of the company is
either empowered or hindered by his/her perception of his/her
own personal environments. The Spillover Theory explains
that there exists a relationship between work and personal
life. Since this theory explains the achievement of workfamily harmony, positive and negative effects are induced in
the process. Therefore, work influences personal life of the
employee and vice versa. For example in a positive spillover,
when the nature of an employee‟s personal environment is
positive (harmonious relationship with family members,
improved standard of living, and other positive influences),
then higher levels of satisfaction on the employee‟s job
would eventually follow. While in a negative spillover, when
an employee is exposed to a negative personal environment
(family problems, strained relationships, health issues, and
other negative influences), the effect will be induced stress on
the employee‟s job. Furthermore, if a person is more exposed
to a more encouraging atmosphere in his/her life, then
working is not felt as a burden and intent to quit the job is not
seen as an option. But if a person experiences difficulties in
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his personal life, that may affect his/her ability to function
properly in the organization and would eventually lead to
turnover intention.
The above literature review has discussed how work-life
balance programs affect the employee‟s turnover intent in the
company.
2.2.1. Relationship of the Usage of Work-Life Balance
Programs with Work-life Conflict and Turnover
Intention
The concept of work-life balance programs stemmed from the
individual meanings of both words−work and life. According
to the research study of Yasbek [2], work-life balance
programs are posited as a means to encourage workers to
expend extra effort, beyond the minimum required to
maintain their jobs. Thus, organizations are focusing on
implementing and providing work-life balance programs
customized to the individual needs of each employee for
them to perform their job effectively and stay with the
company. The existing programs offered by the organization
provide the employees the capacity to balance the levels of
their work and family commitments and responsibilities.
WLB support is a Human Resource Management (HRM)
strategy that employers can use to attract and/or retain
talented people [Mescher et al., 13]. However, another work
by MacInnes [5] argues that what are usually assumed as the
causes of the debate over the concept – longer hours, greater
stress at work, together with the collapse of the male
breadwinner division of parenting and employment
responsibilities … are nothing of the sort (as cited in Deery &
Jago, [11]). Taking into consideration the results of the
aforementioned studies, the researchers hypothesized the
following:
H1: The more frequent an employee uses an
organization‟s work-life balance programs, the lesser an
employee intends to leave the organization.
H2: The more frequent an employee uses an
organization‟s work-life balance programs, the lesser an
employee experiences work-life conflict.
2.2.2. Relationship of Work-Life Conflict to Turnover
Intention
Work-life conflict pertains to the unbalanced relationship
between the work of the employee and his/her personal life.
According to McMillan et al., [14], it is a form of inter-role
conflict in which the role pressures from the work and family
domains are mutually incompatible in some respect. As
mentioned before, earlier studies also proved the correlation
between work-life conflict and increased level of stress and
job burnout towards increasing the intent to leave the
organization. In one study, work–life conflict increased
employees‟ intention to leave, thereby creating greater stress
levels for those left in the work environment [Deery & Jago,
11]. Additionally, cognitive difficulties and reduced health
and fatigue are also effects of work-life conflict.
Moreover, according to Poulose & Sudarsan [30]
inefficient management of life priorities can lead to serious
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The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 3, No. 6, June 2015
consequences. The consequences may in general manifest as
diminished job satisfaction, poorer productivity and
performance, lower organizational commitment, inferior
career ambitions &success, increased absenteeism and
intention to leave. Considering what is indicated in the
literature on work-life conflict, the proponents further
hypothesized:
H3: The more work-life conflict an employee
experiences, the more an employee intends to leave the
organization.
Kanwar et al., [16] stated that in a human resource context,
turnover is the rate at which an employer gains and loses
employees. They added that simple ways to describe it are
„how long employees tend to stay‟ or „the rate of traffic
through the revolving door‟ and that turnover intent generally
results in actual turnover. Turnover intention is defined as an
employee's voluntary decision to leave an organization. When
turnover rates increase in an organization, it will reduce its
reputation and increase the cost of re-hiring new staff (Liu et
al., 2010) as cited in Kumar & Eng [17]. High turnover can
be harmful to a company's productivity if skilled workers
regularly leave the organization and the workers population
contains a high percentage of novice workers [Kanwar et al.,
16].
In the study conducted by Harris et al., [4], it was
assumed that although it is recognized that people leave their
jobs for a variety of reasons, there is consistent research
evidence indicating that voluntary turnover can be explained
by employees' intention to leave the organization. As cited in
Regts & Molleman [19], it could be the case that employees‟
relationships with and commitment to co-workers (Reichers,
1985), may influence employee attachment to an organization
(Maertz and Champion, 1998).
2.3. Research Simulacrum
Work-Life
Conflict
Work-Life
Balance
Programs
H3
(+)
Turnover
Intent
H1
(-)
Figure 1 shows the proposed model of the effect of
work-life balance programs in reducing work–life conflict
and turnover intention of employees in a call center. Figure 1
depicts a developed hypothesized model of this study. It
shows 3 developed hypotheses through the literature review
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METHOD
3.1. Research Design
To examine the relationship among the three variables in this
study namely, usage of work-life balance programs, work-life
conflict and turnover intention; Structural Equation Modeling
(SEM) was used. “SEM is a specific type of regression
analysis and explains relationships between independent
(exogenous) and dependent (endogenous) variables [Eboli et
al., 15].
Table 1: Reliability Results of the Used Scales
2.2.3. Turnover Intention among Employees
H1
(-)
III.
Usage of Work-Life Balance
Programs
Work-Life Conflict
Turnover Intentions
No. of
Questions
Cronbach’s
Alpha
14
0.810
10
4
0.925
0.883
Table 1 shows the reliability results of the scales used in
this study. The reliability of the questionnaires used for the
study was measured through Pilot testing based on the
cronbach‟s alpha. Originally, the seventeen (17) questions
that were used to measure the usage of work-life balance
programs were eventually reduced into fourteen (14)
questions which yielded a cronbach‟s alpha equivalent to
0.810. The cronbach‟s alpha of the 10 questions intended to
measure work-life conflict was calculated to be 0.925 while
the cronbach‟s alpha of the four (4) questions that were used
to measure the turnover intention of the call center agents was
0.883.
3.2. Study Site and Subjects
The researchers chose different companies from the BPO
industry specifically call center agencies as their study site
because these are very prominent in the Philippines
nowadays; this industry was also able to highlight the
Filipinos‟ communication proficiency and computer
knowledge [Abara & Heo, 22]. A total of eight hundred five
(805) questionnaires were distributed, three hundred eightysix (386) questionnaires were retrieved and three hundred
(300) of these were subjected to data analysis. The chosen
participants were call center agents based on the following
inclusive criteria: working in the different call center agencies
located in the National Capital Region (NCR), employed as a
call center agent regardless of the type of account they are in,
and willing to answer the questionnaires voluntarily.
Table 2: Demographic Profile of Respondents
Demographic Profile of Respondents (n=300)
Profile
Mean
28.8
Age
3.95
No. of years working in the company
Frequency
166
Male
Gender
134
Female
205
Single
Civil Status
93
Married
1
Doctoral Degree
5
Master’s Degree
Educational
Attainment
218
College Graduate
75
Undergraduate
© 2015 | Published by The Standard International Journals (The SIJ)
SD
5.03
2.74
%
55.3
44.7
68.3
31
0.3
1.7
72.7
25.3
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Table 2 depicts the demographic profile of the
respondents. All of the 300 respondents are within the age
bracket of 18–48 years old (Mean=28.8, SD=5.03) and
worked for their companies for less than a year up to 12 years
(Mean=3.95, SD=2.74). More than half of the total number of
respondents were male (166 or 55.3%) and most were single
(205 or 68.3%). There were 218 (72.7%) respondents who
have finished their collegiate degree, 76 (25.3%) who have
no collegiate degree, 5(1.7%) who have their master‟s degree
and 1(0.3%) who has a doctoral degree.
3.4. Data Gathering Procedure
3.3. Data Measures
3.5. Ethical Considerations
Based from the literature review, the researchers devised an
adapted questionnaire to examine the relevance of work-life
balance programs of the organization in reducing the
employees‟ work-life conflict and turnover intention. Pilot
testing was executed in order to guarantee the validity of the
questions for this certain construct. The pilot testing was
conducted in a call center agency located in Alabang. The
research questionnaire was constructed and content validated
by five (5) subject matter experts (researchers‟ thesis adviser,
statistician, two (2) HR managers and research professor)
according to the following:
* Robotfoto – this instrument sought for respondents‟
personal information such as age, gender, civil status,
educational attainment and years of tenure in the company.
* Work-Life Balance Programs – questions in the
formulation of work-life balance and work-life balance
programs were adapted from the Work-life balance (QLB)
questionnaire which can be found on [32].
* Work-Life Conflict – the work-life conflict questions
were adapted from the research study of Netemeyer et al., [1],
with modifications regarding the scale used, which is a 6point Likert scale ranging from never (1) to always (6).
Evidence of internal consistency is provided by construct
reliability which ranges from .88 -.90, coefficient alpha with
.88- .89 and average variance of .59-.60 as provided in their
literature, Development and Validation of Work-Family
Conflict and Family-Work Conflict Scales dated March 2,
1996.
* Turnover Intention – Items used in Mujtaba and
Udechukwu‟s 3-item scale (2007) as cited by WattyBenjamin & Udechukwu [31], and Ten Brink‟s 3-item scale
(2004) as cited in Bloome et al., [12] were all adapted and
consolidated. A 6-point Likert scale ranging from never (1) to
always (6) was also used to measure the employees‟
perception with regards to their reasons on leaving the
organization.
To ensure the best quality of the survey questionnaires, the
researchers sought for the validation and approval of the
questions to be used for the data gathering process through
the approval of HR experts. The consent letter attached to the
survey given by the researchers emphasized that the
responses gathered will be treated with utmost confidentiality
and will be used strictly for the purpose of the study.
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A letter of intent was disseminated to the HR managers of the
call center agencies in order to gain permission for the
conduct of the survey. The questionnaires were distributed to
four (4) call center agencies through the assistance of their
respective HR managers. The collection of data took one (1)
month (second week of October 2014 to the second week of
November 2014). From the original total of 805
questionnaires, 300 were retrieved and subjected to data
analysis.
3.6. Data Analysis
Structural Equation Model (SEM) was used to test the
researchers‟ hypotheses regarding the relationship among
usage of work-life balance programs, work-life conflict and
turnover intention of employees. SEM was employed on
SSPS version 20 for OS Windows 7 and AMOS version 16.
IV.
RESULTS
Exploratory Factor Analysis (EFA) of the variables: usage of
work-life balance programs, work-life conflict and turnover
intention is shown in table 3 to 5. The twenty-eight (28) items
in the questionnaire were factor analyzed, hence, the
discovery of the underlying dimensions of the construct. All
dimensions with a reliability coefficient of 0.60 and above
and the items under these, with a factor loading of 0.40 and
above, were considered acceptable in the study. The scale
used to measure the frequency of employee‟s usage of the
work-life balance programs of an organization was originally
divided into four (4) dimensions but was further reduced into
two (2) –Policy Rationalization dimension and Time
Adjustment and Social Support dimension, since the other
two dimensions failed to reach the acceptable range of
reliability. The first dimension, Policy Rationalization,
pertains to tailor-fitting the policy based on the majority
needs of employees in which the application is general in
nature and not individualized. The second dimension is Time
Adjustment and Social Support which refers to the perception
of the call center agents whether or not work-life balance
programs are helpful to them in decreasing work-life conflict
in terms of flexibility of schedules and existence of support
from immediate social circle.
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The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 3, No. 6, June 2015
Table 3: Exploratory Factor Analysis on the Usage of Work-life Balance Programs
Factor
Loading
Work-life Balance Programs Dimensions
Policy Rationalization
How often do you feel that work-life balance policies in the organization are customized to
individual needs?
Do you feel happy or satisfied about the amount of time you spend at work?
Do you generally feel you are able to balance your work and personal life?
How often does your company provide the following a separate policy for work-life balance?
(Flexible starting time, Flexible ending time, Flexible hours in general & Holidays/Paid Time-Off)
Does your organization provide you with the following additional work provisions? (Counseling
services for employees, Health programs, Parenting or family support programs, Exercise facilities,
Relocation facilities and choices & Transportation)
Time Adjustment and Social Support
Do you personally feel any of the following will help you balance your work and life? (Flexible
starting time, Flexible ending time, Flexible hours in general, Holidays/Paid Time-Off & Time-Off
for Family Engagement / Activities)
Do any of the following help you balance your work and family commitments? (Working from
home, Technology like cell phones/laptops, Support from colleagues at work & Support from family
members)
Similarly, work-life conflict surfaced two (2)
dimensions, which the researchers coined as Job Demands
and Family Demands. Job demands refer to the work related
issues that the call center agents experience such as
workloads and duties to perform. The other one is Family
Eigen
Value
3.06
%
Variance
21.194
Cronbach
Alpha
.736
1.55
11.625
.632
.756
.732
.663
.636
.521
.838
.794
Demands, which refer to the family life of the agents that
requires sustained care, effort and attention. However, the
third variable which is turnover intention was considered as
one dimension only (Table 5).
Table 4: Exploratory Factor Analysis of Work-life Conflict
Factor
Loading
Work-life Conflict Dimensions
Job Demands
Due to work-related duties, I have to make changes to my plans for family activities.
The amount of time my job takes up makes it difficult to fulfil family responsibilities.
My job produces strain that makes it difficult to fulfil family duties.
The demands of my work interfere with my home and family life.
Things I want to do at home do not get done because of the demands my job puts on me.
The demands of my family or spouse/partner interfere with work related activities.
Family Demands
Things I want to do at work don't get done because of the demands of my family or
spouse/partner.
Family-related strain interferes with my ability to perform job-related duties.
My home life interferes with my responsibilities at work such as getting to work on time,
accomplishing daily tasks, and working.
I have to put off doing things at work because of demands on my time at home.
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%
Variance
40.836
Reliability
Coefficient
.925
1.252
35.303
.905
.846
.818
.808
.784
.781
.656
.862
.854
.843
.746
Table 5: Exploratory Factor Analysis of Turnover Intention
Factor
Eigen
Turnover Intention Indicators
Loading
Value
2.726
I think about quitting my present job to look for vacancies in other organizations.
.959
I think of looking for a new job for better opportunities.
.946
I think of leaving the organization to work for another organization.
.938
Table 6: Model Fit Statistics of the Structural Equation Model
Model Fit Summary
Default Model Values
NPAR
95
RMSEA
.059
GFI
.897
CFI
.949
NFI
.906
CMIN
418.946
DF
204
CMIN/DF
2.054
Eigen
Value
6.362
%
Variance
69.058
Reliability
Coefficient
.883
The model fit statistics in Table 6 shows the acceptability
of the emerging model as compared to the theoretical model
(Figure 1). The three essential measurements were taken into
account when compatibility between the model and the data
are assessed: Chi-square statistic (CMIN/DF), Goodness of
Fit Indices (GFI) and Root Mean Square Error of
Approximation (RMSEA). Accordingly, the standard for GFI
must fall on the value that is equal or greater than 0.80,
RMSEA must have a value less than 0.07, and CMIN/DF
must be lower than 3 wherein the resulting model that
followed the threshold values are considered as fit and valid.
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The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 3, No. 6, June 2015
Work-life Conflict
Job Demands
Family Demands
-.51
(+)
-.42
Policy Rationalization
Work-life
Balance
.36
Programs
-.23
.67
Time Adjustment and
Social Support
Turnover Intention
.78
Figure 2: The Emerging Model
The emerging model in Figure 2 shows regression
weights that determine the association among variables. In
figure 1, the researchers hypothesized that (i) the more
frequent an employee uses an organization‟s work-life
balance programs, the lesser an employee intends to leave the
organization, (ii) the more frequent an employee uses worklife balance programs, the less work-life conflict he/she
experiences and (iii) the more work-life conflict an employee
experiences, the more an employee intends to leave the
organization. In the final emerging model, results show that
the Policy Rationalization dimension of the usage of worklife balance programs negatively affects turnover intention
(β=-.23) which explains that the more employees perceive
that work-life balance programs are customized to their needs
and convenience, the lesser their turnover intention will be.
However, there is no significant relationship between the
Time Adjustment and Social Support dimension and turnover
intention, which indicates that, the perception of employees
relating to whether the work-life balance programs are
helpful or not in terms of decreasing their work-life conflict
doesn‟t affect their intention in leaving the organization.
Additionally, the Policy Rationalization dimension of
usage of work-life balance programs negatively affects both
dimensions of work-life conflict namely Job Demands and
Family Demands (β= -.51 and -.42) which signifies that the
more the employees view that the work-life balance programs
are customized to their needs and are convenient for them,
the lesser they experience work-life conflict. On the other
hand, the Time Adjustment and Social Support dimension
positively affects both Job Demands and Family Demands
(β=.67 and .78). This finding suggests that when employees
perceive that work-life balance programs will allow them
better balance their work and life, the greater the work-life
conflict they experience.
Finally, Job Demands showed a positive effect on the
variable Turnover Intention (β=.36) which indicates that the
greater the employees‟ work demands are (i.e. workloads and
duties to perform), the greater their intention to leave will be.
Meanwhile, family demands revealed no relationship to
turnover intention, which means that the family life of the
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employees doesn‟t affect their intention in leaving the
organization.
V.
DISCUSSION
The purpose of this study was to develop a model that
describes the causal relationships between the effectiveness
of work-life balance programs with work-life conflict and
turnover intention and work-life conflict to turnover
intention, particularly among a select group of call center
agents in NCR. Surprisingly, the results revealed a more
detailed causal relationship compared to the researchers‟
hypothesized model (Figure 1).
Moreover, according to the findings of the study, the
Policy Rationalization dimension of work-life balance
programs negatively affects turnover intention which states
that the more employees feel that work-life balance programs
are fit to their collective needs, the lesser they intend to leave
the organization. Smith & Gardner [6] state that “work-life
balance is one factor that can affect levels of work-to-family
and family-to-work conflict for employees as well as
commitment
to
the
organization
and
turnover
intentions.”Additionally, the Border theory encourages both
the organization and its employees to use tools, work-life
balance programs or policies, to strike a better balance in
their work and family lives (Sue Campbell Clark, 2000) cited
by McMillan et al., [14]. However, the other dimension of
work-life balance programs namely Time Adjustment and
Social Support shows no effect on turnover intention, this
may mean that the perception of employees relating to the
help they can get from work-life balance programs is not
enough to be an indicator of them leaving the company
because of the fact that it is only their perception.
Next, work-life balance programs have opposing effects
on work-life conflict. On one hand, the more employees
perceive that work-life balance programs are customized to
their needs and are convenient for them, the lesser they
experience work-life conflict. This finding is congruent with
the study conducted by Greenhaus, Collins and Shaw (2003)
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The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 3, No. 6, June 2015
as cited under the study of Newaz & Zaman [18] which
suggests that an equally high investment of time and high
association in work and family would diminish work-family
conflict and stress thereby enhancing an individual‟s quality
of life. On the other hand, the more employees perceive that
work-life balance programs are helpful to better manage their
work and life, the more they experience work-life conflict.
This could be explained in the sense that when employees
view that work-life balance programs will help them balance
their work and life, expectations arise and that when these
expectations are not met, frustration may eventually manifest.
Thus, when frustrations arise, the more work-life conflict is
experienced.
Lastly, the more work-life conflict an employee
experiences caused by job demands, the more an employee
will manifest the intention to leave the organization. This
finding supports the third hypothesis forwarded by the
proponents of this research which is also congruent with the
findings of Deery & Jago [11] in which they mentioned that
problems usually encountered by the employees such as
irregular work schedules, long working hours and heavy
workloads increase the latter‟s intention to leave the
organization. Meanwhile, the other work-life conflict
dimension, Family demands, revealed no effect on turnover
intention. This may indicate that the family life of the
employees doesn‟t influence their intention in leaving the
organization perhaps it can be the reason why they stay even
though they experience work-life conflict.
The present study offers valuable insights to theory and
practice on the field of Human Resources and the findings of
the study are congruent with the assumptions of the Border
and the Spillover theory. The Spillover theory argues that
there is a similarity between what occurs in the work
environment and what occurs in the family environment,
which is congruent to what the Border theory suggests that
work and family are two different domains or spheres that
influence one another. Thus, in order to help employees
balance and manage the gap between their work and life,
organizations should provide work-life balance programs.
Further, the effectiveness of work-life balance programs
lessens the conflicts experienced by employees in their work
and life, which can be caused by either the demands from
their work or their family duties to perform.
Overall, the results generated can be helpful to HR
managers in the BPO sector especially in employee retention
and compensation and benefits. Human capital is the most
important resource for the company. Thus, companies must
strive for the improvement of their programs and policies that
cater to employee needs. Additionally, work-life balance
programs must be customized to the job demands of the
employees, giving them relative options in choosing the
programs that would address the work-life conflict they
experience. These may be in forms of flexible or alternative
work schedules (flextime, compressed work weeks,
telecommuting, job sharing, and part time employment) and
leaves or time-off activities (paid and unpaid). Organizations
should also identify the factors that cause their employees‟
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turnover intentions to help them assess what aspect of their
programs needs to be developed and how they could
effectively retain key employees in their organization.
VI.
CONCLUSION
This study developed a model that explains the causal
relationships of work-life balance programs with turnover
intention, work-life balance programs with work-life conflict,
and work-life conflict with turnover intention among call
center agents in the BPO industry. The model was tested
using three hypotheses and data from 300 call center agents.
Results of the study showed that work-life balance programs
have opposing effects on work-life conflict, which means that
even though organizations provide work-life balance
programs, work-life conflict will surely decrease. Thus, HR
managers are encouraged to develop programs and policies
pertaining to employees‟ work-life balance by focusing on
the matters that cause the workers to experience conflict
between their work and personal life (e.g. flexible starting
time, flexible ending time, flexible hours in general and
holidays/paid time-off, counselling services for employees,
health programs, parenting or family support programs,
exercise facilities, relocation facilities and choices and
transportation).
Similarly, “Work-Life Balance in Philippine BPO
organizations, must be seen in terms focusing on the extent to
which benefits are not only commensurate and competitive
but are also relevant to the needs of employees” [Meenakshi
& Bhuvaneshwari, 25]. Focusing on the reduction of
employees‟ work-life conflict and discovering more of the
factors of turnover intention will help not only the employees
themselves but also the organization in terms of workforce
retention. This is consistent with what Pradana & Salehudin
[26] summarized in their study that turnover intention is the
result of the employees‟ evaluation and expectation of their
stay in the organization and in order to build sustainable
competitive edge, retaining key talents is important for any
business. Indeed, reducing employee turnover intention plays
an important role for HR managers wanting to retain their
valuable talents.
While the research study yielded valuable results, other
factors that may affect the relationship of work-life balance
programs and work-life conflict such as employees‟
expectations and demographic statistics may be further
explored. Future researchers may use the same construct with
the participation of more companies most especially
companies under other sub-sectors of the BPO industry.
Furthermore, a research on work-life conflict variable as a
mediating factor can be done since the focus of the present
study is on the employees‟ turnover intention in general.
Finally, researchers may conduct the same study with the
demographic statistics as a replacement for work-life balance
programs variable to generate results that may further explain
the scope of both work-life conflict and turnover intention.
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The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 3, No. 6, June 2015
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Christine Nuyda Balunos. She earned her
Bachelor
of
Science
in
Business
Administration Major in Human Resource
Development Management degree from the
University of Santo Tomas located in Manila,
Philippines last June 2, 2015. She is currently
Human Resource Assistant of Hansei
Corporation, a general trading and
engineering corporation in the Philippines.
She was an oral presenter in the International Conference for Social
Science and Management in Kyoto Japan last May 8, 2015. She was
© 2015 | Published by The Standard International Journals (The SIJ)
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The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 3, No. 6, June 2015
able to assume several positions in her local and nationwide
organizations. She was the Executive Vice President for External
Affairs of the Thomasian Junior Association for People
Management for and Chairwoman for the Way and Means
Committee of the Junior People Management Association of the
Philippines, both for the year 2014-2015.
Eleighn Grace Vanessa Madamba Castro.
She earned her Masters in Industrial Relations
in the University of the Philippines, Diliman
Branch. She is currently the department head
of the Human Resource Development
Management in the College of Commerce and
Business Administration of the University of
Santo Tomas in Manila Philippines. She is
also the adviser of the official academic
organization of the human resource development management
department, which is the Thomasian Junior Association for People
Management. She is passionate in training and development as well
as personal development. Also, she is a member of the People
Managers Association of the Philippines.
Kristine Angeli Juan Reyes. She earned her
degree in Bachelor of Science in Business
Administration major in Human Resource
Development Management in the University
of Santo Tomas located in Manila,
Philippines last June 2, 2015. Among the
seminars she attended during her stay in the
university consists of the TJAPM General
Assembly 2014, Last Hurrrah 2014, My
Story: HRDM Tale 2014, The HR Professional Toolbox 2014,
Makinig. Matuto. Magtrabaho 2014, and Empowering Minds,
Building Hearts, Enriching Souls 2014, Thomasian Business
Leader's Congress 2014 and Career Seminar for graduating students
2015. She was also a former Executive Committee for Sports of the
Thomasian Junior Association for People Management 2014-2015.
ISSN: 2321-242X
Anne Nicole Presincula Sabino. She earned
her degree of Bachelor of Science in Business
Administration Major in Human Resource
Development
Management
from
the
University of Santo Tomas Manila,
Philippines last June 2, 2015. She attended
seminars namely the following: War of Wits
2014, TJAPM General Assembly 2014, Last
Hurrrah 2014, My Story: HRDM Tale 2014,
The HR Professional Toolbox 2014, Makinig. Matuto. Magtrabaho
2014, and Empowering Minds, Building Hearts, Enriching Souls
2014. She formerly held the positions of Executive Secretary of the
Thomasian Junior Association for People Management and was an
active member of the Junior People Management Association of the
Philippines for the year 2014-2015.
Kathlyn Renee Magleo Taino. She earned
her degree of Bachelor of Science in Business
Administration Major in Human Resource
Development
Management
from
the
University of Santo Tomas Manila,
Philippines last June 2, 2015. She was able to
attend and participate in the following
seminars: Jumpstart: let your imagination
take flight 2015 headed by the Commerce
Journal, Career Seminar for graduating students 2014, and
Thomasian Business Leader's Congress 2014. She was formerly the
Literary Editor of the UST Commerce Journal that serves as the
chief project manager of the official literary folio of the college and
the project head of all literary critique sessions of the publication.
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112
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