Implementation of Work-Life Balance and Its Impact on Employee Retention in Startup Companies Kitalulus
Keywords:
Compensation, Startup Company, SEM-PLS
Abstract
In an era of rapid globalization, startup companies face unique challenges in retaining top talent in a competitive market. The importance of attracting and retaining quality employees is becoming increasingly important, especially in the ever-evolving technology and innovation sectors. This study examines the impact of work-life balance and compensation on employee retention in Kitalulus, a startup company. Using a quantitative approach, data were collected from 99 respondents through a structured questionnaire designed to assess perceptions of work-life balance, compensation equity, and employee retention intention, analyzed data by SMARTPLS4 to evaluate the relationships between variables. The results showed that both work-life balance and compensation significantly influenced employee retention. Furthermore, compensation was also found to act as a moderator in the relationship between work-life balance and employee retention, indicating that a supportive compensation structure can enhance the positive effect of work-life balance on retention. These findings emphasize the importance of integrating competitive compensation and effective work-life balance policies into organizational practices. This study contributes to the understanding of employee retention dynamics in a startup environment and offers practical recommendations for enhancing employee satisfaction and loyalty through strategic management of work-life balance and compensation
References
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Shah, M. &Asad, M. (2018). Effect of motivation on employee retention: Mediating role of perceived organizational support. European Online Journal of Natural and Social Sciences, 7(2), 511–520.
Sheehan, L. R., Lane, T. J., & Collie, A. (2020). The impact of income sources on financial stress in workers’ compensation claimants. Journal of Occupational Rehabilitation, 30, 679–688. 10.1007/s10926–020–09883–1
Shockley, K. M., Smith, C. R., & Knudsen, E. A. (2017). The impact of work–life balance on employee retention.The Wiley Blackwell handbook of the psychology of recruitment, selection and employee retention, 7(1), 513–543.https://doi.org/10.1002/9781118972472.ch24
Silaban, H. &Margaretha, M. (2021). The impact work–life balance toward job satisfaction and employee retention: study of millennial employees in Bandung City, Indonesia, International Journal of Innovation and Economic Development,7(3),18–26. https://doi.org/10.18775/ijied.1849–7551–7020.2015.73.2002
Sinaga, O. &Sijabat, R. (2022). Analisis pengaruh employee motivation, employee empowerment, work life balance terhadap employee retention dengan job satisfaction sebagai variabel mediasi pada PT XYZ, Jurnal Administrasi Bisnis (JAB), 12(1), 87–96.
Wright, T. A., & Cropanzano, R. (2000). Psychological well-being and job satisfaction as predictors of job performance. Journal of Occupational Health Psychology, 5(1), 84-94
Greenhaus, J. H., & Allen, T. D. (2011). Work-family balance: A review and extension of the literature. The Psychology of Work-Life Balance, 1-32.
Hammer, L. B., Kossek, E. E., Anger, W. K., Bodner, T. E., & Zimmerman, K. (2011). Clarifying work-family intervention processes: The roles of work-family conflict and culture. The Journal of Applied Psychology, 96(1), 134-145.
Hassan, A., Donianto, C., Kiolol, T., & Abdullah, T.(2022). Pengaruh talent management dan work life balance terhadap retensi karyawan dengan mediasi dukungan organisasi, Modus, 34(2), 158–183. https://doi.org/10.24002/modus.v34i2.5966
Hayden, B. M. (2022). A qualitative investigation into the Great Resignation in Ireland: The reasons behind employee turnover within the tech industry during the COVID–19 pandemic, (August).
Indrayani, I., Nurhatisyah, N., Damsar, D., & Wibisono, C.(2023). How does millennial employee job satisfaction affect performance, Higher Education, Skills and Work–based Learning, 14(1), 22–40. https://doi.org/10.1108/HESWBL–01–2023–0004
Kahn, K. W., & Byun, S. (2018). The impact of work-life balance on turnover intentions: A study of employees in small firms. International Journal of Human Resource Management, 29(5), 905-924.
Kamselem, K. M., Nuhu, M. S., Lawal, K. A., Liman, A. M., & Abdullahi, M. S.(2022). Testing the nexus between reward system, job condition and employee retention through intervening role of employee engagement among nursing staff, Arab Gulf Journal of Scientific Research, 40(1), 34–53. https://doi.org/10.1108/AGJSR–05–2022–0061
Kelliher, C., & Anderson, D. (2010). Doing more with less? Flexible working practices in a downsizing environment. International Journal of Human Resource Management, 21(9), 1405-1420.
Khateeb K.F. R. (2020). Work Life Balance–a Review of Theories, Definitions and Policies’, Cross–Cultural Management Journal, 23(1), 27–55.
Khatun, Mahfuja, Rahman, S. N. and Khatun, Munni (2023). impact of development opportunities and compensation on employee retention: A comparative study on Banking industry of Bangladesh, European Journal of Management and Marketing Studies, 8(1), 40–63. https://doi.org/10.46827/ejmms.v8i1.1400
Kreiner, G. E., Hollensbe, E. C., & Sheep, M. L. (2009). Balancing borders and bridges: Negotiating the work-home interface via boundary work tactics. Academy of Management Journal, 52(4), 704-730.
Ladegaard, Y., Skakon, J., Dalgaard, V. L., Ståhl, C., Slot Thomsen, S. T., & Netterstrøm, B. (2023). Employees with mental disorders seeking support from the workers compensation system–experiences from Denmark. Work, 75(4),1361-1377. https://doi.org/1361–1377. 10.3233/WOR–211315
Lorentzon, J. I., Fotoh, L. E. &Mugwira, T. (2023). Remote auditing and its impacts on auditors’ work and work–life balance: auditors’ perceptions and implications, Accounting Research Journal, 37(1), 1–18.https://doi.org/10.1108/ARJ–06–2023–0158
Matusik, S. F., & Hill, C. W. (2013). The utilization of human capital in the creation of competitive advantage: The role of work-life balance. Journal of Business Research, 66(10), 2170-2178.
Manjula, P. V. N., & Rao, D. S. (2020). A study on impact of compensation package on employee retention in organized retail sector. International Journal of Advanced Science and Technology, 29(3), 4395–4403
Panda, A. &Sahoo, C. K. (2021). Work–life balance, retention of professionals and psychological empowerment: an empirical validation, European Journal of Management Studies, 26(2), 103–123. https://doi.org/10.1108/ejms–12–2020–0003
Poongavanam, S., & Divyaranjini, R. (2018). Impact of salary and reward on the achievemt in the pharma companies. Indian Journal of Public Health Research & Development, 9(10), 1136–1138. https://doi.org/10.5958/0976–5506.2018.01292.5
Rani, R. &Desiana, P. M. (2019). The impact of owners’ intrinsic motivation and work–life balance on SMEs’ performance: The mediating effect of affective commitment,International Journal of Business, 24(4), 393–411.
Sarkar, J., Jena, L. K. &Sahoo, K. (2023). Mediating role of need satisfaction on total reward management towards retention: a conceptual framework,Vilakshan –XIMB Journal of Management, 20(2), 210–222. https://doi.org/10.1108/xjm–03–2021–0083
Saufi,A.R., Che Nawi, N. B., Permarupan, P. Y., Zainol, N. R. B., Aidara, S., Kakar, A. S., & Jothi, B. A. P.(2023). Academic Person–Environment Fit towards Sustainable Work–Life Balance and Reduced Turnover Intention Moderated by Job Opportunities, Sustainability,15(4). https://doi.org/10.3390/su15043397
Shah, M. &Asad, M. (2018). Effect of motivation on employee retention: Mediating role of perceived organizational support. European Online Journal of Natural and Social Sciences, 7(2), 511–520.
Sheehan, L. R., Lane, T. J., & Collie, A. (2020). The impact of income sources on financial stress in workers’ compensation claimants. Journal of Occupational Rehabilitation, 30, 679–688. 10.1007/s10926–020–09883–1
Shockley, K. M., Smith, C. R., & Knudsen, E. A. (2017). The impact of work–life balance on employee retention.The Wiley Blackwell handbook of the psychology of recruitment, selection and employee retention, 7(1), 513–543.https://doi.org/10.1002/9781118972472.ch24
Silaban, H. &Margaretha, M. (2021). The impact work–life balance toward job satisfaction and employee retention: study of millennial employees in Bandung City, Indonesia, International Journal of Innovation and Economic Development,7(3),18–26. https://doi.org/10.18775/ijied.1849–7551–7020.2015.73.2002
Sinaga, O. &Sijabat, R. (2022). Analisis pengaruh employee motivation, employee empowerment, work life balance terhadap employee retention dengan job satisfaction sebagai variabel mediasi pada PT XYZ, Jurnal Administrasi Bisnis (JAB), 12(1), 87–96.
Wright, T. A., & Cropanzano, R. (2000). Psychological well-being and job satisfaction as predictors of job performance. Journal of Occupational Health Psychology, 5(1), 84-94
Published
2025-05-18
How to Cite
Alamsyah, E., & Budi Eko Soetjipto. (2025). Implementation of Work-Life Balance and Its Impact on Employee Retention in Startup Companies Kitalulus. International Journal of Economics, Business and Innovation Research, 4(03), 701-713. https://doi.org/10.63922/ijebir.v4i03.1796
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