American Journal of Economic and Management Business

 

 

 

 

p-ISSN: XXXX-XXXX

�e-ISSN: 2835-5199

Vol. 3 No. 10 October 2024

 

The Effect of Work-Life Balance on Organizational Commitment and Turnover Intention of Millennial Generation Employees �

 

Berlianingsih Kusuma1, Sulistyo Seti Utami2, Siti Maryama3, Ermalina4

ITB Ahmad Dahlan, Tangerang Banten, Indonesia1,2,3,4

Emails: [email protected], [email protected], [email protected], [email protected]

 

Abstract

The millennial generation, born during the rapid advancement of technology, highly values the balance between work and personal life. However, an inadequate balance between these two aspects often contributes to a high turnover intention among employees. This study introduces a novel approach by examining the influence of Work-Life Balance (WLB) on organizational commitment and turnover intention specifically among millennial employees, a demographic under increasing focus in the modern workforce. The objective of this research is to analyze how WLB affects both organizational commitment and the intention to leave the job in the context of this generation. A quantitative method was employed, using a questionnaire to collect data from 100 respondents at PT. X through purposive sampling. The results reveal that WLB significantly impacts organizational commitment and reduces turnover intention. Employees who experience a balanced work and personal life are more likely to be satisfied, motivated, and emotionally engaged with the organization, leading to lower turnover rates. Conversely, a poor balance can result in dissatisfaction and stress. The practical implications of this research suggest that organizations, especially those seeking to retain millennial talent, should prioritize fostering a supportive environment for WLB to enhance employee retention and commitment. The study�s focus on millennials offers a fresh perspective that could influence HR practices and policies in the evolving world of work.

Keywords: organizational commitment, turnover intention, work-life balance.

 

INTRODUCTION

The millennial generation, known as Generation Y, is a generation group that is very familiar with technology. The millennial generation has become the majority group in the labor force in many countries, including Indonesia. This happens because they are of productive age and dominate the number of active workers (Gaol et al., 2023). Based on the 2019 National Labor Force Survey (SAKERNAS), the number of workers from the millennial generation in Indonesia was recorded at 48 million people. This figure shows that the millennial generation accounts for 53% of the total national workforce, which amounts to 127 million workers (Syaifudin & Andini, 2020).

Millennials are a generation that strongly supports the concept of work-life balance, as they tend to value the balance between work and personal life more than previous generations. This is due to a variety of factors, including their experience in dealing with stress due to high job demands and increased awareness of the importance of mental health and overall well-being (Djastuti et al., 2022). Millennials prefer jobs that offer flexibility, such as adjustable hours, remote work options, and a supportive company culture for family and personal activities. This desire is not only to improve the quality of life but also to increase productivity and job satisfaction. By supporting work-life balance, companies can attract and retain talented millennial employees, who in turn, contribute to the long-term success of the organization (Yusuf et al., 2023).

High employee turnover rates are often caused by a lack of work-life balance. When employees feel overwhelmed by excessive work demands, inflexible working hours, or lack of time for family and themselves, they tend to experience stress, burnout, and dissatisfaction (Novitasari & Dessyarti, 2022). This can encourage them to look for other jobs that offer a more flexible work environment and support a better life balance. Companies that fail to create a healthy work-life balance risk losing quality employees, which can ultimately increase turnover rates and harm productivity and organizational stability (Harianto & Herachwati, 2023).

A previous study by Sismawati & Lataruva (2020) stated that the higher the level of work-life balance felt by employees, the lower the turnover rate that occurs in the company. When employees are given the flexibility and support to balance work with their personal lives, they tend to feel more satisfied, more motivated, and more loyal to the company. This condition reduces stress and fatigue, which are often the main causes of employees leaving work. With an environment that supports work-life balance, employees feel valued and tend to last longer, resulting in significantly lower employee turnover. Companies that prioritize work-life balance will eventually have a more stable and productive workforce.

The purpose of the study is to explore the influence of work-life balance on organizational commitment and turnover intention of millennial generation employees, which is the dominant group in the current workforce. The novelty of this research lies in its focus on the millennial generation, which has unique characteristics and different expectations compared to previous generations related to the balance between work and personal life. This is important to increase employee retention and create a more productive and harmonious work environment for the millennial generation.

RESEARCH METHODS

The research employed a quantitative method, which focuses on the collection and analysis of numerical or statistical data to test specific hypotheses or answer research questions. Quantitative methods are ideal for this study as they enable objective measurement and analysis of variables, allowing for the generalization of findings. Data collection was conducted through a structured questionnaire, ensuring consistency in responses. The sample size consisted of 100 respondents, chosen based on predetermined criteria set by the researcher to ensure relevance and representativeness of the population under study. The sampling criteria might include factors such as demographics, experience, or behaviours that align with the research objectives. The collected data was subjected to several statistical tests, including validity, normality, and reliability tests, to confirm the accuracy and consistency of the measurements. Hypothesis testing was performed using a regression analysis to explore the relationships between variables. All statistical analyses were carried out using SPSS software, ensuring accurate interpretation of the data.

 

RESULT AND DISCUSSION

Validity Test

Validity testing is a process used to determine the extent to which a measuring instrument actually measures what it is supposed to measure.

Tabel 1.

Hasil Uji Validitas

 

 

X

Y1

Y2

X

Pearson Correlation

1

0.527

0.477

 

Sig. (2-tailed)

 

(< 0.001)

(< 0.001)

 

N

100

100

100

Y1

Pearson Correlation

0.527

1

0.668

 

Sig. (2-tailed)

(< 0.001)

 

(< 0.001)

 

N

100

100

100

Y2

Pearson Correlation

0.477

0.668

1

 

Sig. (2-tailed)

(< 0.001)

(< 0.001)

 

 

N

100

100

100

Correlation is significant at the 0.01 level (2-tailed).

The study results were obtained from statistical tests below 0.05, which indicates that the data results are valid and the research can be continued.

Normality Test

The following are the results of the normality test carried out.

Table 2.

Tests of Normality

Kolmogorov-Smirnova

Shapiro-Wilk

 

Statistic

df

Sig.

Statistic

Df.

Sig.

X

.224

100

<.001

.862

100

<.001

Y1

.115

100

.002

.935

100

<.001

Y2

.120

100

.001

.945

100

<.001

a.      Lilliefors Significance Correction

 

The results of the study were obtained if the data obtained were normally distributed, because the value of sig. below 0.05 so that the research can continue.

Reliability Test

The reliability test aims to assess the extent to which a measuring instrument produces consistent and stable results when used in the same situation or repeated at different times.

Table 3.

Reliability Statistic

Cronbach's Alpha

N of Items

.784

3

The test was obtained if Cronbach's alpha value was 0.784, which indicates that the instrument used has good reliability, so it can be continued for further analysis.

Regression Test

The following are the regression test results obtained.

Table 4.

Hasil Uji Regresi

Unstandardized Coefficients

Standardized Coefficients Beta

 

t

 

Sig.

Model

 

B

Std. Error

1

(Constant)

2.601

3.031

 

.858

.393

 

X

.803

.131

.527

6.134

<.001

Coeffecientsa

Unstandardized Coefficients

Standardized Coefficients Beta

 

t

 

Sig.

Model

 

B

Std. Error

1

(Constant)

5.719

2.944

 

1.942

.055

 

X

.682

.127

.477

5.369

<.001

 

The table above states that the Work-Life Balance variable has an influence on organizational commitment and turnover intention of millennial generation employees with a significance value (sig) below 0.05, explaining if there is a good relationship in each variable.

Work-Life Balance Affects Organizational Commitment

The test results found that Work-Life Balance has an influence on organizational commitment. In line with Riffay's (2019) research, which found that work-personal balance has a strong influence on teachers' organizational commitment because when teachers feel a balance related to the demands of work and personal life, employees will be satisfied and motivated to carry out their duties. With the increase in work-life balance (WLB), employee affective commitment will also increase. A good WLB allows employees to feel happy in doing their jobs, which causes employees to tend to be more emotionally attached to the organization (Choeriyah & Utami, 2023).

�Organizational commitment is an individual's level of attachment and dedication to the desires, vision, and culture of the company they work for. This commitment reflects the extent to which individuals feel emotionally and professionally attached to the organization, which in turn can affect motivation, performance, and satisfaction at work. Organizational commitment consists of several aspects, such as emotional relationships, obligations, and long-standing commitments (Kurniawan, 2022).

When employees feel that the organization values their need to maintain a balance between work and personal life, they are motivated to contribute positively and feel a stronger bond with the team and organizational goals. Conversely, if WLB is disrupted, employees can experience stress and dissatisfaction, which can reduce their affective commitment. Therefore, increasing WLB can contribute to increased affective commitment, which in turn has a good value on employee productivity and retention (Badrianto & Ekhsan, 2021).

Thus, Work-life balance (WLB) affects the organization's commitment. WLB allows employees to have a sense of satisfaction and engage in their work. If employees can divide their time between their work and personal time, they will show a higher level of commitment to the organization. Organizations that support WLB can increase employee motivation, loyalty, and productivity. Conversely, imbalances in WLB can lead to stress, burnout, and decreased commitment, which can ultimately affect employee performance and retention. Therefore, it is important for organizations to create a supportive environment for WLB in order to build strong commitment among employees.

 

Work-Life Balance Affects Millennial Employee Turnover Intention

In the test, it was found that Work-Life Balance had an influence on the turnover intention of millennial generation employees, in line with the results of Christiana & Rahardjo (2017), which stated that Work-life balance (WLB) also has an influence on turnover intention, namely the employee's intention not to work anymore. When employees feel a balance between work and personal life, they will feel satisfied, their stress levels will be reduced, and they will feel more motivated and productive. Organizational support, such as work flexibility and well-being programs, can also improve WLB, thus creating a stronger bond between employees and the company.

In contrast to the research of Barrage & Sudarusman (2022), which states that the statement that work-life balance (WLB) has a negative and insignificant effect on turnover intention in millennial workers in Yogyakarta shows that although WLB should be able to reduce employees' intention to leave work, the effect does not prove strong.

Turnover intention is the employee's intention, in this case, the employee to leave his current job and look for a new job that reflects the employee's level of dissatisfaction with the job, work environment, or company conditions that may prompt them to consider leaving (Nurdin & Rohaeni, 2020). This indicator is important for companies, as it can provide insight into employee retention rates and predict possible turnover rates. Turnover intention analysis can assist organizations in identifying underlying employee dissatisfaction issues and developing strategies to increase their satisfaction and loyalty (Sitohang & Sitompul, 2024).

A good work-life balance can reduce turnover intention by increasing job satisfaction, reducing stress, and increasing employee motivation and productivity. Organizations that pay attention to their employees' WLB can benefit from higher loyalty and reduced turnover-related costs. Therefore, it is important for companies to develop policies and practices that support this balance (Wijayanto et al., 2022).

Thus, work-life balance (WLB) affects employee turnover intention, especially among the millennial generation. Millennial employees often prioritize work-life balance as an important factor in choosing and retaining a job. When their WLB is awake, they tend to feel more satisfied and engaged in work, which reduces their intention to switch jobs. Conversely, imbalances in WLB can lead to stress, fatigue, and job dissatisfaction, which increases turnover intention. Millennial employees who feel pressured by excessive job demands or lack flexibility in their working hours are likely to consider looking for other opportunities that better suit their needs. Therefore, organizations need to pay attention to the WLB aspect to reduce turnover intention among millennial employees and increase their retention.

 

CONCLUSION

The test results show that work-life balance (WLB) has a significant influence on organizational commitment and employee turnover intention, especially in the millennial generation. A truly balanced balance of work and personal benefits increases employee satisfaction, motivation, and emotional attachment to the organization, thereby reducing their intention to leave work. On the other hand, imbalances in WLB can lead to stress and dissatisfaction, potentially increasing turnover intention; therefore, it is important for organizations to create a supportive environment for WLB to increase employee commitment and retention.

Future research should explore how specific WLB policies, such as flexible work arrangements or mental health support programs, influence turnover intention across different generations and industries. Additionally, examining the long-term effects of WLB interventions on organizational commitment would provide valuable insights into sustaining workforce stability. Implications for Company Management: The findings imply that company management should prioritize establishing a culture that supports WLB to enhance employee loyalty and reduce turnover. Practical steps include implementing flexible working hours, offering wellness programs, and ensuring clear boundaries between work and personal life. These initiatives are critical for maintaining a productive and engaged workforce, particularly in retaining millennials who may place higher importance on WLB.

 

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Copyright holders:

Berlianingsih Kusuma, Sulistyo Seti Utami, Siti Maryama, Ermalina(2024)

First publication right:

AJEMB � American Journal of Economic and Management Business