| dc.description.abstract | This study examines the effect of work-life balance (WLB) on employee productivity
(EP), with employee mental health (MH) as a mediating variable, among workers in
Indonesia. Grounded in Human Capital Theory, the research conceptualizes work-life
balance as a strategic organizational investment that preserves and enhances
psychological capital, thereby influencing long-term labor productivity and workforce
sustainability.
A quantitative explanatory approach was adopted, utilizing primary data collected
through an online survey of 219 respondents selected via purposive sampling. Data
were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM)
with SmartPLS software. The measurement model demonstrated satisfactory validity
and reliability, while the structural model assessed direct effects, mediation, and
explanatory power.
The results indicate that work-life balance has a positive and statistically significant
direct effect on both employee productivity and employee mental health. However,
mental health does not exert a significant direct influence on employee productivity,
nor does it significantly mediate the relationship between work-life balance and
productivity. The model exhibited relatively low explanatory power (R2 = 0.015 for
employee productivity and R2 = 0.047 for mental health), suggesting that structural,
organizational, and institutional factors beyond individual psychological variables
play a dominant role in shaping productivity outcomes in the Indonesian labor
market.
These findings underscore the importance of work-life balance policies as
mechanisms for enhancing workforce sustainability and psychological well-being,
while highlighting the conditional nature of psychological capital’s contribution to
productivity in emerging economy contexts. The study contributes to labor economics
and human resource management literature by integrating mental health within a
Human Capital framework and offers practical implications for organizations seeking
to improve employee productivity through balanced work arrangements and
supportive workplace practices. Limitations, including reliance on self-reported data
and the cross-sectional design, are acknowledged, along with recommendations for
future research. | en_US |
