The Role of Employee Engagement in Mediating the Relationship between Work-Life Balance and Organizational Culture on Job Performance among Generation Z Employees at State-Owned Bank Enterprises
DOI:
https://doi.org/10.59261/bustechno.v7i4.771Keywords:
Work-Life Balance, Organizational Culture, Employee Engagement, Job Performance, Generation Z, State-Owned EnterprisesAbstract
Background: Global employee engagement remains critically limited; in Indonesia, only 25.28% of employees were categorized as engaged. The increasing participation of Generation Z in state-owned financial institutions makes it important to determine how workplace conditions are converted into performance.
Objective: The study investigates whether employee engagement mediates the associations of work-life balance and organizational culture with job performance among Generation Z personnel in Indonesian state-owned financial institutions (SOEs).
Methods: A quantitative cross-sectional survey was conducted using purposive sampling. An online questionnaire yielded data from 370 Generation Z employees at Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia, Bank Tabungan Negara, and Bank Syariah Indonesia. Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4 was used for analysis.
Results: Work-life balance was not directly related to job performance at a significant level, although it had a positive significant relationship with employee engagement. Engagement positively and significantly predicted performance. Organizational culture showed positive significant relationships with both engagement and performance. Employee engagement completely mediated the work-life balance–performance relationship and partially mediated the organizational culture–performance relationship.
Conclusion: The model accounted for 61.2% of the variance in job performance and 62.8% of the variance in employee engagement.
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