A Work-Life Balance, Employee Engagement, and Well-Being: Their Effect on Employee Performance in Rural Banking

Pengaruh Wok-Life Balance, Employee Engangement dan Employee Well-being terhadap Kinerja Karyawan di Bank Perekonomian Rakyat

Abstract

This empirical study models the impact of work-life balance, employee engagement, and employee well-being on employee performance at BPR Asabahana Sejahtera, a rural banking institution in Pati, Central Java. Using a quantitative, descriptive, and causal framework, a census was conducted covering the entire population of 35 employees. Primary data were obtained through a structured questionnaire employing a 10-point Likert scale. For the structural model assessment, Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed using SmartPLS 4, which systematically combines external and internal model validation with bootstrap-based hypothesis testing. The results indicate that work-life balance (t = 2.139, p = 0.033), employee engagement (t = 1.978, p = 0.048), and employee well-being (t = 2.447, p = 0.015) each exert a positive and statistically significant effect on employee performance. Overall, these three predictors explain 82.8% of the variance in employee performance (R² = 0.828; adjusted R² = 0.811), while the model demonstrates a good fit, as indicated by an SRMR value of 0.062. These result suggest that work-life balance, employee engagement, and employee well-being must be addressed simultaneously—rather than separately—to improve employee performance in rural banking institutions.