Journal of Economics, Finance and Management Studies
ISSN(print): 2644-0490, ISSN(online): 2644-0504
Volume 6 Issue …….(Month) 2023, Impact Factor: 6.274
Page No.- 00-00
The impact of achieving a work-life balance on employee satisfaction
with their job, with psychological well-being serving as a mediating
factor.
(Empirical Study on Employees of PT Medion Central Java)
Muhdiyanto1, Fajar Shidiq Hidayat2,
1Muhammadiyah University of Magelang
2
Muhammadiyah University of Magelang
ABSTRACT: This study aims to explore the influence of work-life balance on job satisfaction and employee psychological
well-being within the context of PT Medion Ardhika Bhakti, a company located in Central Java. A quantitative research
methodology is adopted, employing purposive sampling to select a sample of 105 permanent, married employees. The
analysis utilizes structural equation modeling and partial least square analysis, implemented through the WARP-PLS 7.0
software. The results reveal a positive association between work-life balance and both employee job satisfaction and
psychological well-being. Furthermore, the findings suggest that psychological well-being acts as a mediator in the
relationship between work-life balance and job satisfaction.
Keywords Employee Job Satisfaction, work life balance, psychological wellbeing
I. INTRODUCTION
Employee job satisfaction plays a pivotal role in a company's success as it directly influences employee
productivity. Insufficient satisfaction among employees can give rise to issues such as conflicts, reduced
motivation, and a decline in skill levels. Job satisfaction is a subjective experience and can vary among
employees, but it can be assessed through their job performance. Consequently, employees with a high level
of job satisfaction tend to exhibit greater productivity.
PT Medion, as an organization, bears the responsibility of fostering employee satisfaction in the workplace.
One approach to achieving this is by effectively managing the work-life balance of employees. A favorable
work-life balance enables employees to reconcile their work commitments with their personal lives,
including their familial responsibilities. Nevertheless, it is crucial to acknowledge that there are inherent risks
associated with striving to strike a balance in all aspects.
Striving to achieve work-life balance requires employees to effectively manage the demands of both their
work and personal lives. However, this pursuit can potentially add pressure to employees' psychological wellbeing. Consequently, in order to enhance employee job satisfaction through effective work-life balance
management, it is essential to address the fulfillment of employees' psychological needs. By promoting good
psychological well-being, organizations can foster an environment conducive to increased employee job
satisfaction. This assertion finds support in a study conducted by Saptono et al. (2020), which affirms the
positive impact of work-life balance on employee job satisfaction. Similarly, Pratama & Setiadi (2021) also
discovered a significant relationship between work-life balance and employee job satisfaction. However,
these findings contradict the research conducted by Lumunon & Sendow (2019), which suggests that worklife balance has no effect on employee job satisfaction..
Building upon the background and prior research discussed, the authors propose the research title "The
Effect of Work-Life Balance on Employee Job Satisfaction Mediated by Psychological Well-Being”.
JEFMS, Volume 6 Issue ..(Month) 2023
Page 1
www.ijefm.co.in
Article Title
II. LITERATUR REVIEW
Affective Events Theory, formulated by psychologists Howard M. Weiss from the Georgia Institute of
Technology and Russell Cropanzano from the University of Colorado, provides a framework for
understanding how employees emotionally respond to workplace events, thereby influencing their job
satisfaction and performance (Weiss & Beal, 2007). This theory posits that emotions are reactions to events
transpiring within the work environment, encompassing both the physical and social aspects of the
organizational context. According to the Affective Events Theory, job satisfaction is regarded as an attitude
stemming from employees' affective states.
Job satisfaction can be understood as an individual's emotional reaction towards their work environment,
reflecting their level of contentment (Pujiwati & Muhdiyanto, 2020). Harahap & Khair (2019) further
elaborate on job satisfaction, defining it as the experience of positive or negative emotions that employees
perceive in their workplace. These emotions arise from the fulfillment of personal needs, desires, hopes, and
ambitions, leading to a state of physical and mental satisfaction.
Work-life balance refers to the state in which employees or individuals strive to achieve equilibrium between
their professional commitments and personal lives (Wardani & Firmansyah, 2021). This comprehensive
concept entails establishing appropriate priorities between work-related pursuits such as career advancement
and ambitions, and aspects of life encompassing happiness, leisure, family, and spiritual growth.
Psychological well-being encompasses an individual's subjective experience of their life's purpose, selfacceptance, environmental mastery, positive interpersonal relationships, personal growth, and autonomy
(Alandete, 2015). It reflects the extent to which individuals perceive a sense of comfort, tranquility, and
happiness, based on their subjective evaluations, as well as their perception of realizing their full potential.
Job satisfaction is basically an emotional response to a work situation (Pujiwati & Muhdiyanto, 2020). One
of the efforts that can be done to increase employee job satisfaction is to manage work life balance. Work
life balance is a condition where employees can manage their time well or can harmonize work at work and
personal needs and family life.
Based on the findings of the study conducted by Pratama & Setiadi (2021), it is evident that the work-life
balance variable has a significant and positive impact on employee job satisfaction. Building upon this
observation, the following hypothesis is formulated:
H1. Work life balance has a positive effect on employee job satisfaction.
According to Alandete (2015), psychological well-being pertains to individuals' perception of the
meaningfulness of their lives, characterized by self-acceptance, environmental mastery, positive interpersonal
connections, personal growth, and autonomy. Establishing a favorable work-life balance can contribute to
fostering a state of psychological flourishing among employees.
Based on the research findings presented by Frisdayanti & Handoyo (2021), it is evident that the work-life
balance variable positively and significantly influences Psychological Wellbeing. Drawing upon these results,
the following hypothesis is formulated:
H2. Work life balance has a positive effect on Psychological Wellbeing.
Psychological well-being is experienced by individuals in relation to the sense of purpose in their lives, selfacceptance, environmental control, positive social connections, personal growth, and autonomy. Attaining
psychological well-being or experiencing a state of psychological prosperity can contribute to increased job
satisfaction among employees.
JEFMS, Volume 6 Issue ..(Month) 2023
Page 2
www.ijefm.co.in
Article Title
The findings of the study conducted by Hardianto & Islamiati (2021) provide evidence that the
psychological well-being variable significantly and positively influences employee job satisfaction. Building
upon this description, the following hypothesis is formulated:
H3. Psychological Wellbeing Positively Affects Employee Job Satisfaction
Work-life balance refers to the state in which employees or individuals strive to achieve equilibrium between
their professional commitments and personal lives (Wardani & Firmansyah, 2021). This endeavor can
contribute to the attainment of a favorable level of psychological well-being among employees. When both
aspects are adequately addressed, employee satisfaction with their work tends to increase.
The research conducted by Haider et al. (2018) reveals that psychological well-being variables mediate the
relationship between work-life balance, employee performance, and employee satisfaction. Building upon
this explanation, the following hypothesis is formulated:
H4. Psychological Wellbeing mediates the relationship between Work Life Balance and Job
Satisfaction.
Figure 1 Research Model
III. METHODOLOGY
This study focuses on a specific population comprising 105 employees who hold permanent positions at PT
Medion Ardhika Bhakti in Central Java. The research employs a purposive sampling technique, targeting
individuals who meet specific criteria, namely being married and holding permanent employee status. This
criterion is implemented to ensure that the selected participants possess a comprehensive understanding of
the work processes, given their experience and the full rights and responsibilities they hold as employees.
This study adopts a quantitative research approach, as the data collected will primarily consist of numerical
values. Data analysis will be conducted based on the obtained numerical data. The study incorporates three
variables: work-life balance, employee job satisfaction, and psychological well-being, with the latter serving as
a mediating variable. Primary data is collected through the distribution of questionnaires to obtain
information pertaining to work-life balance, employee job satisfaction, and psychological well-being.
Additionally, secondary data from literature, articles, journals, and relevant websites are utilized as references
to support the variables under investigation.
In this research, the data analysis method employed is Structural Equation Modeling - Partial Least Square
(SEM PLS) using the WARP-PLS 7.0 software. To ensure the quality of the data, the researchers conducted
validity and reliability tests. The validity test aimed to assess the questionnaire's validity, specifically utilizing
confirmatory factor analysis. This analysis confirms whether the indicators used effectively represent the
intended variables. If the loading factor value exceeds 0.5, the data can be considered valid. Additionally, a
reliability test was conducted to evaluate the consistency or stability of the questionnaire's indicators over
time. The Cronbach Alpha (α) statistical test was used to measure reliability, with a coefficient exceeding 0.60
indicating a reliable instrument.
Hypothesis testing in this study is performed using two approaches: direct testing and indirect testing. The
direct test examines the direct impact of the independent variable on the dependent variable. On the other
JEFMS, Volume 6 Issue ..(Month) 2023
Page 3
www.ijefm.co.in
Article Title
hand, the indirect test involves incorporating the mediating variable into the analysis to assess its influence
on the relationship between the independent variable and the dependent variable.
IV. RESULT & DISCUSSION
Table 1 : Respondents Overview
Category
Gender
Age
Last Education
Working Time
Criteria
Frequency Percentage
Male
82
96,5 %
Female
3
3,5%
Total
85
100%
< 20 Years
2
2,4%
20 – 25 Years
28
32,9%
26 – 30 Years
16
18,8 %
31 – 35 Years
12
14,1 %
36 – 40 Years
4
4,7 %
> 40 Years
23
27,1 %
Total
85
100%
Senior High School
53
62,4%
Diploma
13
15,3%
Bachelor degree
19
22,4%
Total
85
100%
< 2 Years
11
12,9%
3 – 5 Years
20
23,5 %
6 – 10 Years
27
31,8%
11 -15 Years
1
1,2%
16 – 20 Years
7
8,2%
21 – 25 Years
15
17,6%
> 30 Years
4
4,7%
Total
85
100 %
Table 1 presents the demographic characteristics of the study participants. The majority of respondents were
male, accounting for 82 individuals or 96.5% of the sample. This gender distribution can be attributed to the
nature of the industry, which tends to require more male workers than female workers. Furthermore, the
largest age group among the respondents was 20-25 years old, comprising 28 individuals or 32.9% of the
sample. In terms of educational background, the majority of respondents had completed their high school
JEFMS, Volume 6 Issue ..(Month) 2023
Page 4
www.ijefm.co.in
Article Title
education, totaling 53 individuals or 62.4% of the sample. Additionally, based on the collected data, most of
the respondents had a work experience of 6-10 years, with 27 individuals falling into this category,
representing 31.8% of the sample.
Table 2 : Validity test
Variable
Employee Job Satisfaction
Work Life Balance
Psychological Wellbeing
JEFMS, Volume 6 Issue ..(Month) 2023
Page 5
Validity
Indicator P Value Description
Y1
0.714
Valid
Y2
0.746
Valid
Y3
0.715
Valid
Y4
0.731
Valid
Y5
0.728
Valid
Y6
0.819
Valid
Y7
0.753
Valid
Y8
0.720
Valid
Y9
0.712
Valid
Y10
0.731
Valid
Y11
0.762
Valid
Y12
0.765
Valid
Y13
0.737
Valid
X1
0.765
Valid
X2
0.848
Valid
X3
0.774
Valid
X4
0.759
Valid
X5
0.809
Valid
X6
0.842
Valid
X7
0.805
Valid
X8
0.809
Valid
X9
0.721
Valid
M1
0.796
Valid
www.ijefm.co.in
Article Title
M2
0.784
Valid
M3
0.772
Valid
M4
0.733
Valid
M5
0.743
Valid
M6
0.804
Valid
M7
0.806
Valid
M8
0.787
Valid
M9
0.807
Valid
M10
0.743
Valid
M11
0.707
Valid
M12
0.704
Valid
M13
0.800
Valid
M14
0.821
Valid
M15
0.814
Valid
M16
0.774
Valid
M17
0.792
Valid
M18
0.778
Valid
Based on the outcomes of the validity and reliability tests, the data analysis results reveal that the loading
factor values for the indicators of Employee Job Satisfaction, Psychological Wellbeing, and Work-Life
Balance exceed the threshold of 0.5. This indicates that the instrument used is considered valid, as loading
factors above 0.5 are deemed acceptable in assessing validity.
Tabel 3 : Reliability Test
Variable
Cronbach’s Aplha
Composite Reliability
Description
Employee Job Satisfaction
0,932
0,941
Reliable
Work Life Balance
0,926
0,938
Reliable
Psichological Wellbeing
0,961
0,865
Reliable
The reliability of the research instrument can be assessed by examining the Cronbach's Alpha value, which is
considered acceptable if it exceeds 0.06, and the Composite Reliability value, which is considered reliable if it
exceeds 0.07. Based on the results of the reliability test, it can be observed that the variables of Employee
Job Satisfaction, Psychological Wellbeing, and Work-Life Balance demonstrate Cronbach's Alpha values
exceeding 0.06, indicating that the reliability of these variables is acceptable.
In this study, the Goodness of Fit (GOF) was utilized to evaluate whether the study model meets the ideal
criteria. The model is considered to be fit if the covariance matrix of the model aligns with the covariance of
JEFMS, Volume 6 Issue ..(Month) 2023
Page 6
www.ijefm.co.in
Article Title
the data matrix. The goodness of fit of a study model can be assessed through three fit indicators: average
path coefficient (APC), average R-square (ARS), and average variance inflation factor (AVIF).
Table 4 : Goodnes Of Fit Model
No
Fit Model
1
Average path coefficient (APC)
2
Average R-Square (ARS)
3
Average Variance Inflation Factor (AVIF).
P Value
Description
< 0,001
Fit Because P < 0,05
< 0,001
2,879
Fit Because P < 0,05
Accepted because ≤ 5
Figure 2 Direct Test
A direct test was employed to examine the impact of the independent variable on the dependent variable.
Figure X illustrates the first direct test, which explores the effect of the Work-Life Balance (X) variable on
employee job satisfaction (Y). The analysis reveals a coefficient value of 0.73 (p-value < 0.01), indicating a
positive and significant effect. These findings support H1, which posits that work-life balance positively
influences employee job satisfaction. Therefore, H1 is accepted based on the obtained results.
Figure 3 Indirect Test
The indirect test is conducted by introducing the mediating variable into the relationship between the
independent variable and the dependent variable. The mediation test determines whether the influence of
these variables on the relationship of other variables is mediating, based on a p-value smaller than 0.05.
Examining the output results in Figure X, it is observed that the work-life balance variable has a significant
and positive effect on the psychological well-being variable, with a coefficient value of 0.81 (p-value < 0.001).
These findings support H2, indicating that work-life balance positively influences psychological well-being.
Furthermore, the effect of psychological well-being on employee job satisfaction demonstrates a coefficient
value of 0.45 (p-value < 0.001). These results suggest that psychological well-being significantly and
positively impacts employee job satisfaction, supporting H3.
The indirect effect of the work-life balance (X) variable on employee job satisfaction (Y) mediated by
psychological well-being (M) reveals a decrease in the p-value from 0.73 to 0.38 after introducing the
mediating variable. Although the coefficient and p-value decrease, the direct effect remains significant. This
implies partial mediation, indicating that the influence is partially mediated by the introduced mediating
variable.
JEFMS, Volume 6 Issue ..(Month) 2023
Page 7
www.ijefm.co.in
Article Title
V. CONCLUSION
The purpose of this study is to examine the impact of work-life balance on employee job satisfaction, with
psychological well-being playing a crucial role as a mediating variable. The findings from the data analysis
allow us to draw the following conclusions:
1. It is evident that work-life balance has a direct and significant positive effect on employee job
satisfaction. This implies that when employees are able to effectively manage their work and personal
life demands, it positively influences their overall satisfaction with their job.
2. The results demonstrate that work-life balance also has a significant and positive impact on
psychological well-being. This indicates that when employees are able to achieve a sense of balance
between their work responsibilities and personal life, it contributes to their overall psychological wellbeing.
3. Psychological well-being is found to have a direct and significant positive effect on employee job
satisfaction. This suggests that when employees experience higher levels of psychological well-being, it
leads to increased job satisfaction.
4. Importantly, the mediating role of psychological well-being is evident in the relationship between worklife balance and employee job satisfaction. This implies that the positive influence of work-life balance
on job satisfaction is partially explained by the impact it has on employees' psychological well-being
In conclusion, this study establishes the significance of work-life balance in influencing both employee job
satisfaction and psychological well-being. Moreover, it highlights the mediating role played by psychological
well-being in the relationship between work-life balance and job satisfaction.
REFERENCES
Alandete, J. G. (2015). Does Meaning in Life Predict Psychological Well-Being? The European Journal of Counselling
Psychology, 3(2), 89–98. https://doi.org/10.5964/ejcop.v3i2.27
Frisdayanti, D. O., & Handoyo, S. (2021). Pengaruh Work Life Balance Terhadap Psychological Well-Being Pada
Karyawan Work From Home. Buletin Riset Psikologi Dan Kesehatan Mental (BRPKM) 2021, Volume 1(No 2), 1457–
1461. https://www.e-journal.unair.ac.id/BRPKM/article/view/30272
Haider, S., Jabeen, S., & Ahmad, J. (2018). Moderated mediation between work life balance and employee job
performance: The role of psychological wellbeing and satisfaction with coworkers. Revista de Psicologia Del Trabajo y
de Las Organizaciones, 34(1), 29–37. https://doi.org/10.5093/jwop2018a4
Harahap, D. S., & Khair, H. (2019). Pengaruh Kepemimpinan Dan Kompensasi Terhadap Kepuasan Kerja Melalui
Motivasi
Kerja.
Maneggio:
Jurnal
Ilmiah
Magister
Manajemen,
2(1),
69–88.
https://doi.org/10.30596/maneggio.v2i1.3404
Hardianto, Y., & Islamiati, N. (2021). Hubungan Psychological well-being dengan Kepuasan Kerja pada Tenaga
Kesehatan Honorer Puskesmas Mangunjaya Kabupaten Pangandaran. JURNAL PENELITIAN PENDIDIKAN,
PSIKOLOGI DAN KESEHATAN (J-P3K), Volume 2(No 3), 301–309. https://doi.org/10.51849/j-p3k.v2i3.126
Lumunon, R. R., & Sendow, G. M. (2019). PENGARUH WORK LIFE BALANCE, KESEHATAN KERJA DAN
BEBAN KERJA TERHADAP KEPUASAN KERJA KARYAWAN PT. TIRTA INVESTAMA (DANONE)
AQUA AIRMADIDI THE INFLUENCE OF WORK LIFE BALANCE, OCCUPATIONAL HEALTH AND
WORKLOAD ON EMPLOYEE JOB SATISFACTION PT. TIRTA INVESTAMA (DANONE) AQUA
AIRMADIDI. Uhing… 4671 Jurnal EMBA, 7(4), 4671–4680.
JEFMS, Volume 6 Issue ..(Month) 2023
Page 8
www.ijefm.co.in
Article Title
Pratama, H. P., & Setiadi, I. K. (2021). PENGARUH WORK LIFE BALANCE TERHADAP KEPUASAN KERJA
KARYAWAN MILENIAL PERUSAHAAN STARTUP DI JAKARTA. Business Management Analysis Journal
(BMAJ), 4(2), 25–39. https://doi.org/10.24176/bmaj.v4i2.6602
Pujiwati, & Muhdiyanto. (2020). Pengaruh Komitmen dan Organizational Citizenship Behaviorterhadap Kinerja
Karyawan dengan Kepuasan Kerja SebagaiVariabel Intervening(Studi Empiris Di PT. PLN (Persero) UP3
Magelang). Business and Economics Conference in Utilization of Modern Technology, 328–344.
https://journal.unimma.ac.id/index.php/conference/article/view/4203/1963
Saptono, N. K., Supriyadu, E., & Tabroni. (2020). PENGARUH WORK LIFE BALANCEDAN LINGKUNGAN
KERJA TERHADAP KEPUASAN KERJA MELALUI EMPLOYEE ENGAGEMENTDENGAN
KESEHATAN MENTAL SEBAGAI VARIABEL MODERATOR PADA KARYAWAN GENERASI
MILENIAL (STUDI KASUS: DIREKTORAT KEUANGAN PT ANGKASA PURA I (PERSERO). JURNAL
EKONOMI
BISNIS
MANAJEMEN,
5(2),
88–108.
https://journal.univpancasila.ac.id/index.php/ekobisman/article/view/1837
Wardani, L. M. I., & Firmansyah, R. (2021). WORK-LIFE BALANCE Para Pekerja Buruh (M. Nasrudin, Ed.; 1st ed.).
Nasya Expanding Management.
Weiss, H. M., & Beal, D. J. (2007). Reflections on Affective Events Theory. Emerald Group Publishing Limited, 1–21.
https://doi.org/10.1016/s1746-9791(05)01101-6
JEFMS, Volume 6 Issue ..(Month) 2023
Page 9
www.ijefm.co.in