The influence of flexibility of work to loyalty and employee satisfaction mediated by work life balance to employees with millennial generation background in Indonesia startup companies
Abstract
Human resource is the one of the most important elements in the company. Therefore, the company must have related strategies to retain these workers. One of them is by increasing employee loyalty and satisfaction through flexibility of work and work life balance. The strategy chosen is based on the unique characteristics of the majority of workers who entered the millennial generation. Some companies are already implementing these strategies, including startup companies. This study aims to investigate the influence of the flexibility of working on loyalty and employee satisfaction with work life balance. This research was conducted using convenience and snowball sampling technique to the 121 respondents with a millennial generation background which is worked in startup companies in Indonesia. Data obtained from respondents were processed and analyzed using structural equation modeling. The results of this study indicate that flexibility of work has significant and positive influence to loyalty and employee satisfaction. However, flexibility of work has positive and significant impact on loyalty and employee satisfaction. This research prove that work life balance have partial mediating influence in relationship between flexibility of work and loyalty. In the other hands, work life balance have no mediating a relationship between flexibility of work and the satisfaction of employee with millennial background that is worked in startup companies.
Keyword : millennial generation, startup company, flexibility of work, work life balance, loyalty, and employee satisfaction
How to Cite
Capnary, M. C., Rachmawati, R., & Agung, I. (2018). The influence of flexibility of work to loyalty and employee satisfaction mediated by work life balance to employees with millennial generation background in Indonesia startup companies. Business: Theory and Practice, 19, 217-227. https://doi.org/10.3846/btp.2018.22
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Casper WJ, Harris CM (2008) Work-life benefits and organi- zational attachment: self-interest utility and signaling theory models. Journal of Vocational Behavior 72: 95-109. https:// doi.org/10.1016/j.jvb.2007.10.015
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Clark SC (2000) Work/family border theory: a new theory of work/family balance. Human Relations 53 (6): 747-770. https://doi.org/10.1177/0018726700536001
Dannar PR (2013) Millennials: what they offer our organizations and how leaders can make sure they deliver. The Journal of Values-Based Leadership 6 (1): 1-12.
Deshwal P (2015) Impact of flexible working arrangements in the MNCs of Delhi. International Journal of Applied Research 1 (13): 810-814.
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Lockwood R (2003) Work life balance: challenge and solutions. Society For Human Resource Management 48 (6).
Mansoor M, Fida S, Nasir S, Ahmad Z (2011) The impact of job stress on employee job satifaction a study on telecomunication sector of Pakistan. Journal of Bussiness Studies Quarterly 1 (3): 50-56.
Martensen A, Grønholdt L (2006) Internal marketing: a study of employee loyalty, its determinants and consequences. Innovative Marketing 2: 92-116.
Martin CA, Tulgan B (2001) Managing Generation Y. Amherst: HRD Press.
Malhotra NK (2010) Marketing research: an applied approach. New York: Pearson Education.
Mehta S, Singh T, Bhakar SS, Sinha B (2010) Employee loyalty towards organization-a study of academician. International Journal of Bussiness Management and Economic Research 1 (1): 98-108.
Mustapha N, Ghee WY (2013) Examining faculty workload as a single antecedent of job satisfaction among higher public edu- cation staff in kelantan. Business and Management Horizons 1 (1): 10. https://doi.org/10.5296/bmh.v1i1.3205
Nasiri S, Najafbagy R, Nasiripour AA (2015) The impact of em- ployee loyalty on the success of commercial organizations: a case study on the dealerships of heavy equipment in Iran. Journal of Human Resource Management 3 (3): 27-32. https:// doi.org/10.11648/j.jhrm.20150303.12
Nelson DL, Quick JC, Hitt MA, Moesel D (1990) Politics, lack of career progress, and work/home conflict: stress and strain for working women. Sex Roles 23 (3/4): 169-185.
Ozdevecioğlu M, Aktaş A (2007) Commitment to dedication, professional career and organizational impact on general life satisfaction of infidelity: the role of work-family conflict. Erciyes University. Journal of Faculty of Economics and Administrative Sciences 28 (January-June): 1-20.
Parkes LP, Langford PH (2008) Work-life balance or work-life alignment? A test of the importance of work-life balance for employee engagement and intention to stay in organizations. Journal of Management & Organization 14 (3): 67-284.
Possenried D, Plantenga J (2011) Access to flexible work arran- gements, working-time fit and job satisfaction. Tjalling C. Koopmans Research Institute, Utrecht.
Ransome P (2007) Conceptualizing boundaries between ‘life’ and ‘work’. International Journal of Human Resources Management 18 (3): 374-386. https://doi.org/10.1080/09585190601167425
Ries E (2011) The lean startup: how constant innovation creates radically successful businesses. New York: Random House, inc.
Scandura TA, Lankau MJ (1997) Relationships of gender, family responsibility and flexible work hours to organizational commitment and job satisfaction. Journal of Organizational Behavior 18: 377-391. https://doi.org/10.1002/(SICI)1099-1379(199707)18:4<377::AID-JOB807>3.0.CO;2-1
Seppanen S, Gualtieri W (2012) The millennial generation: rese- arch review. USA: National Chamber Foundation.
Shagvaliyeva S, Yazdanifard R (2014) Impact on flexible working hours on work-life balance. American Journal of Industrial and Business Management, 20-23. https://doi.org/10.4236/ajibm.2014.41004
Thomson P (2008) The business benefits of flexible workin. Strategic HR Review 7 (2): 17-22. https://doi.org/10.1108/14754390810853129
Thornthwaite L (2004) Working time and work-family balance: a review of employees’ preferences. Asia Pacific Journal of Human Resources 42: 166-184. https://doi.org/10.1177/1038411104045360
Weingarten R (2008) Four generations, one workplace: A Gen X-Y staff nurse’s view of team building in the emergency department. Journal of Emergency Nursing 10: 1-4.
Wijanto (2015) Metode Penelitian menggunakan Structural Equation Modeling dengan LISREL 9. Depok: LIP-FEUI.
Zemke R, Raines C, Filipczak B (2000) Generations at work: managing the clash of veterans, boomers, Xers and nexters in your workplace (2nd ed). New York: American Management Association.
Adler PA, Adler P (1988) Intense loyalty in organizations: a case study of college athletics. Administrative Science Quarterly 33: 401-417. https://doi.org/10.2307/2392716
Albion MJ (2004) A measure of attitudes towards flexible working options. Australian Journal of Management 29 (2): 275-294. https://doi.org/10.1177/031289620402900207
Altindag E, Siller F (2014) Effects of flexible working method on employee performance: an empirical study in Turkey. Business and Economic Journal 5. https://doi.org/10.4172/2151-6219.1000104
Antonova E (2016) Occupational stress, job satisfaction, and employee loyalty in hospitality industry: a comparative case Study of Two Hotels in Russia. Master Thesis submitted in fulfillment of the Degree Master of Science in International Tourism.
Atkinson C, Hall L (2011) Flexible working and happiness in the NHS. Employee Relations 33 (2): 88-105.
Blank S (2013) Why the lean start-up changes everything https:// hbr.org/2013/05/why-the-lean-start-up-changes-everything
Bowling NA, Hammond GD (2008) A meta-analytic examina- tion of the construct validity of the Michigan organizational assessment questionnaire sob satisfaction subscale. Journal of Vocational Behavior 73: 63-77. https://doi.org/10.1016/j.jvb.2008.01.004
Brief AP (1998) Attitudes in and around organizations. Thousand Oaks, CA: Sage.
Casper WJ, Harris CM (2008) Work-life benefits and organi- zational attachment: self-interest utility and signaling theory models. Journal of Vocational Behavior 72: 95-109. https:// doi.org/10.1016/j.jvb.2007.10.015
Cegarra-Leiva D, Sánchez-Vidal ME, Cegarra-Navarro JG (2012) Understanding the link between work life balance practices and organizational outcomes in SMEs. Personnel Review 41 (3): 359-379. https://doi.org/10.1108/00483481211212986
Clark SC (2000) Work/family border theory: a new theory of work/family balance. Human Relations 53 (6): 747-770. https://doi.org/10.1177/0018726700536001
Dannar PR (2013) Millennials: what they offer our organizations and how leaders can make sure they deliver. The Journal of Values-Based Leadership 6 (1): 1-12.
Deshwal P (2015) Impact of flexible working arrangements in the MNCs of Delhi. International Journal of Applied Research 1 (13): 810-814.
Greenberg J, Baron R (2003) Behavior in organizations (unders- tanding and managing the human side of work) (8th ed). Prentice Hall.
Greenhaus JH, Collins KM, Shaw JD (2003) The relation between work–family balance and quality of life. Journal of Vocational Behavior 63: 510-531. https://doi.org/10.1016/S0001-8791(02)00042-8
Hair Jr JF, Black WC, Babin BJ, Anderson RE, Tatham RL (2006) Multivariate data analysis (6th ed). Upper Saddle River, NJ: Pearson Prentice Hall.
Hershatter A, Epstein M (2010) Millennials and the world of work: an organization and management perspective. Journal of Business Psychology 25 (13): 211-223. https://doi.org/10.1007/ s10869-010-9160-y
Hofacker D, Konig, S (2013) Flexibility and work-life conflict in times of crisis: a gender perspective. International Journal of Sociology and Social Policy 33 (9-10): 613-635.
Hudson (2005) The case for work life balance: closing the gap between policy and practice, 20:20 Series. Hudson Global Resources.
Iqbal A, Tufail MS, Lodhi RN (2015) Employee loyalty and or- ganizational commitment in Pakistani organizations. Global Journal of Human Resource Management 3 (1): 1-11.
Kreitner R, Kinicki A (2012) Organizational behavioral (10th ed). Boston: McGraw-Hill.
Lancaster LC, Stillman D (2002) When generations collide. Who they are. Why they clash. How to solve the generational puzzle at work. New York: Collins Business.
Lewis S, Humbert AL (2010) Work-life balance, flexible working policies and the gendered organization. equality, diversity and inclusion. International Journal 29 (3): 239-254. https://doi. org/10.1108/02610151011028840
Loudon DL, Bitta AJD (1993) Consumer behavior, concepts and applications (4th ed). Singapore: McGraw-Hill.
Locke EA (1969) What is job satisfaction? Organizational Be- havior and Human Performance 4 (4): 309-336 https://doi. org/10.1016/0030-5073(69)90013-0
Lockwood R (2003) Work life balance: challenge and solutions. Society For Human Resource Management 48 (6).
Mansoor M, Fida S, Nasir S, Ahmad Z (2011) The impact of job stress on employee job satifaction a study on telecomunication sector of Pakistan. Journal of Bussiness Studies Quarterly 1 (3): 50-56.
Martensen A, Grønholdt L (2006) Internal marketing: a study of employee loyalty, its determinants and consequences. Innovative Marketing 2: 92-116.
Martin CA, Tulgan B (2001) Managing Generation Y. Amherst: HRD Press.
Malhotra NK (2010) Marketing research: an applied approach. New York: Pearson Education.
Mehta S, Singh T, Bhakar SS, Sinha B (2010) Employee loyalty towards organization-a study of academician. International Journal of Bussiness Management and Economic Research 1 (1): 98-108.
Mustapha N, Ghee WY (2013) Examining faculty workload as a single antecedent of job satisfaction among higher public edu- cation staff in kelantan. Business and Management Horizons 1 (1): 10. https://doi.org/10.5296/bmh.v1i1.3205
Nasiri S, Najafbagy R, Nasiripour AA (2015) The impact of em- ployee loyalty on the success of commercial organizations: a case study on the dealerships of heavy equipment in Iran. Journal of Human Resource Management 3 (3): 27-32. https:// doi.org/10.11648/j.jhrm.20150303.12
Nelson DL, Quick JC, Hitt MA, Moesel D (1990) Politics, lack of career progress, and work/home conflict: stress and strain for working women. Sex Roles 23 (3/4): 169-185.
Ozdevecioğlu M, Aktaş A (2007) Commitment to dedication, professional career and organizational impact on general life satisfaction of infidelity: the role of work-family conflict. Erciyes University. Journal of Faculty of Economics and Administrative Sciences 28 (January-June): 1-20.
Parkes LP, Langford PH (2008) Work-life balance or work-life alignment? A test of the importance of work-life balance for employee engagement and intention to stay in organizations. Journal of Management & Organization 14 (3): 67-284.
Possenried D, Plantenga J (2011) Access to flexible work arran- gements, working-time fit and job satisfaction. Tjalling C. Koopmans Research Institute, Utrecht.
Ransome P (2007) Conceptualizing boundaries between ‘life’ and ‘work’. International Journal of Human Resources Management 18 (3): 374-386. https://doi.org/10.1080/09585190601167425
Ries E (2011) The lean startup: how constant innovation creates radically successful businesses. New York: Random House, inc.
Scandura TA, Lankau MJ (1997) Relationships of gender, family responsibility and flexible work hours to organizational commitment and job satisfaction. Journal of Organizational Behavior 18: 377-391. https://doi.org/10.1002/(SICI)1099-1379(199707)18:4<377::AID-JOB807>3.0.CO;2-1
Seppanen S, Gualtieri W (2012) The millennial generation: rese- arch review. USA: National Chamber Foundation.
Shagvaliyeva S, Yazdanifard R (2014) Impact on flexible working hours on work-life balance. American Journal of Industrial and Business Management, 20-23. https://doi.org/10.4236/ajibm.2014.41004
Thomson P (2008) The business benefits of flexible workin. Strategic HR Review 7 (2): 17-22. https://doi.org/10.1108/14754390810853129
Thornthwaite L (2004) Working time and work-family balance: a review of employees’ preferences. Asia Pacific Journal of Human Resources 42: 166-184. https://doi.org/10.1177/1038411104045360
Weingarten R (2008) Four generations, one workplace: A Gen X-Y staff nurse’s view of team building in the emergency department. Journal of Emergency Nursing 10: 1-4.
Wijanto (2015) Metode Penelitian menggunakan Structural Equation Modeling dengan LISREL 9. Depok: LIP-FEUI.
Zemke R, Raines C, Filipczak B (2000) Generations at work: managing the clash of veterans, boomers, Xers and nexters in your workplace (2nd ed). New York: American Management Association.