Romat SARAGIH, Mahir PRADANA, Elvira AZIS, Thasania Fitri DRIANA, Naurah Salsabila RAMADHANA /

Journal of Asian Finance, Economics and Business Vol 8 No 7 (2021) 0357–0364 357

Print ISSN: 2288-4637 / Online ISSN 2288-4645

doi:10.13106/jafeb.2021.vol8.no7.0357

The Relationship between Human Resources Practice, Work-Life Balance,

and Employee Engagement: An Empirical Study in Indonesia

Romat SARAGIH1, Mahir PRADANA2, Elvira AZIS3, Thasania Fitri DRIANA4,

Naurah Salsabila RAMADHANA5

Received: October 01, 2020 Revised: May 22, 2021 Accepted: June 01, 2021

Abstract
This study examines the role of effective human resource practices and work-life balance in various organizations and their relationship
with employee engagement. The data for this study were obtained from 723 employees from various industries in Java. The result suggests
that human resource practice alone did not influence employee engagement. However the human resource policy helps develop a sense of
WLB for an employee, which in the long run will affect the level of engagement. Thus, work-life balance enables the relationship between
employees and their workplace. This study also encompasses current literature regarding huan resource policies in understanding employee
engagement through work-life balance. This study provides exploratory findings regarding HR function practices, WLB, and employee
involvement in service organizations. It proved that participants from four organizations reported very positive impressions about HR
practices and they were also very involved in their work and organization. While their balance still needs to be improved, this may imply
that the participants are not happy with their work lives. The main finding of this study is that WLB plays a mediating role in the relationship
between HR practices and employee engagement. This means that organizations need to find ways to help employees achieve a better WLB.

Keywords: Employee Engagement, Human Resources Practice, Work-Life Balance

JEL Classification Code: J20, J24, J28

1. Introduction are slowing down due to the pandemic. They must adapt
to the current situation and apply unique strategies and
The organization has to keep up with business challenges different products that will distinguish them from their
which become more demanding every day (Nguyen & Pham, competitors (Fakhri et al., 2020). Human resources (HR)
2020), particularly in times like this when most businesses are a crucial aspect of an organization because they affect
the company’s success the most. Staff performance will
always reflect in the organization’s performance. To
1
First Author and Corresponding Author. School of Communication display outstanding performance people need to develop
and Business, Telkom University, Indonesia [Postal Address: Jl. a positive work attitude and behavior. One such attitude
Telekomunikasi No. 1, Terusan Buah Batu Kec. Bojongsoang,
Kabupaten Bandung, Jawa Barat, 40257, Indonesia] is engagement. Strom et al. (2014) explain that engaged
Email: saragih@telkomuniversity.ac.id employees are the essence of the most productive and
2
School of Communication and Business, Telkom University, functional companies. Kennedy and Daim (2010), state that
Indonesia. Email: mahir.pradana@gmail.com some of the literature suggest that engagement was crucial
3
School of Economics and Business, Telkom University, Indonesia.
Email: vira.azis@gmail.com for business success. Engaged employees result in several
4
School of Economics and Business, Telkom University, Indonesia. other benefits for the companysuch as lower turnover
Email: drianafitri@student.telkomuniversity.ac.id (Haivas et al., 2013), higher organizational citizenship
5
School of Economics and Business, Telkom University, Indonesia.
Email: naurahsalsabila@student.telkomuniversity.ac.id
behavior (Rasheed et al., 2015), and higher performance
(Buil et al., 2018). Falkoski (2012) discusses the negative
© Copyright: The Author(s)
This is an Open Access article distributed under the terms of the Creative Commons Attribution and positive consequences of employee engagement. There
Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits
unrestricted non-commercial use, distribution, and reproduction in any medium, provided the
are numerous negative consequences resulting from low
original work is properly cited. engagement such as: decrease in sales and profit, customer
 Romat SARAGIH, Mahir PRADANA, Elvira AZIS, Thasania Fitri DRIANA, Naurah Salsabila RAMADHANA /
358 Journal of Asian Finance, Economics and Business Vol 8 No 7 (2021) 0357–0364

satisfaction, workplace safety, and retention. On the other for employees to manage their work and private life. The
hand, the positive side of engagement can include increase supportive environment will trigger employees to give back
in personal accomplishment and less stress. Considering to the organization, in this case, enhancing their engagement.
the importance of engagement, it should be given the main Employees reciprocate positive support to the organization
attention of the company. To cultivate higher employee with an affirmative work attitude.
engagement, an organization needs to determine which
factors affect them (Sekaran and Bougie, 2016) . 2. Theoretical Background and Hypotheses
Earlier studies have shown various factors that positively
influence employee engagement. Juan et al. (2018) found 2.1. Human Resources Practices (HRP)
that the interaction and communication between employees
in sharing knowledge about their job will increase employee Snell and Bohlander (2013), consider HR management
engagement. Inclusive leadership, where supervisor as a process to manage individual talents to achieve organi-
awareness can lead them to exercise openness, accessibility, zational goals. Processes in HR include the responsibility
and availability to their employees is also considered a to analyze and design jobs, conduct manpower planning,
crucial factor that can build engagement. Meanwhile, recruitment, training and development, manage performance,
a study from Choi et al. (2015) mentions that affective set up compensation programs, develop mutual and positive
organizational commitment facilitated the relationship relationships with employees, and make sure that all functions
between leadership style and employee engagement, which are aligned to local labor regulations. If these functions are
means affective commitment can maximize the effect. managed effectively they will bring positive consequences
Furthermore, human resource practices (HRP) in terms of like improving job satisfaction, developing organizational
positive working conditions, encouraging skills enhancement commitment, enhancing employee WLB, promoting
and developing employees’ motivation can help increase the employee engagement, and improving performance (Mayes
engagement level (Aybas & Acar, 2017). Support from an et al., 2016; Tang et al., 2006; Anshuja & Sodhi, 2015;
organization in helping the employee to balance their work Marescaux et al., 2013; Ahmed et al., 2016).
and life can also enhance employee engagement. Nishanti
and Thalgaspitiya (2015), found a positive correlation 2.2. Work-Life Balance (WLB)
between work-life balance (WLB) and engagement. Other
variables that influence employee engagement levels are job Frone (2003),defined WLB as a condition when
satisfaction (Chhetri, 2017), trust (Tabak & Hendy, 2016), there are no conflicts or interferences between work and
perceived organizational support (Jin & Donald, 2016), family/private life roles. Which means that an individual
and compensation (Saks, 2006). These findings indicate can perform their work duties and private life matters
the importance of engagement to be studied, especially in without having to face conflict. Even better, both activities
Indonesia, which still has very limited research that discusses might support each other. Though this is difficult, some
and relates employee engagement to HRP and WLB. This organizations can provide such support to create this
study will fill that gap and additionally, the authors will positive work environment. On the other hand, the role of
examine the possible mediating effect of work-life balance the individual also plays a significant part in achieving this
in the relationship. condition. Organizations can introduce programs which
The researchers point of view is based on theories of support WLB so that employees can focus on their work.
social exchange (Blau, 1964) and conservation of resources People are becoming more aware of the importance of
(Hobfoll, 1989). People will behave in a manner to protect WLB. Thus both parties need to negotiate a path towards
their interests and to accumulate as many resources as balance. Organizations can promote flexible HR policies,
possible. In doing so, considering they interact with other introduce transformational leadership styles, and reconsider
human beings, they also apply to give and take (exchange). the workload (Anshuja & Sodhi, 2015; Conway & Monks,
Employees work to earn money, develop their skills, improve 2006; Nordenmark et al., 2012). Achieving WLB can result
their standard of living, and also provide for their families. in improved employee performance (Mendis & Weerakkody,
They need to create wealth/assets that might be needed in 2017) and organizational performance (Ainapur et al., 2016).
the future. The focus of social exchange theory is that when
one party performs a favor or does something valuable for 2.3. Employee Engagement
another party, the other will reciprocate. Of course, the
value of the favor or conduct is not quite the same. But at As explained, employee engagement is becoming a
least both parties perceive them as being equally valuable. critical discussion especially when the organization is faced
For example, an organization runs an HR practice which with issues regarding the current economic slowdown. It
caters to the employees needs and creates a sense of support has prompted many researchers to examine how employee
 Romat SARAGIH, Mahir PRADANA, Elvira AZIS, Thasania Fitri DRIANA, Naurah Salsabila RAMADHANA /
Journal of Asian Finance, Economics and Business Vol 8 No 7 (2021) 0357–0364 359

engagement is developed in a business organization. An reveal there is a significant and positive effect. If the
engaged employee usually shows high involvement and organization implements HR policies which contain an
enthusiasm about their job and organization. They are element of fairness and show great commitment to employee
passionate about their work, more motivated and willing needs, then such program will drive a level of engagement
to make a greater contribution to helping the organization. and participation towards organization interest and goals.
Employee engagement is a concept that describes the The second hypothesis states that:
employee’s effort to act according to their organization’s
interests (Kennedy & Daim, 2010). Engagement is also H2 : Human resource practice will have a significant and
defined as a form of emotional and logical motivation, positive effect on employee engagement.
where individuals strongly focus on their job which leads
to the achievement of ultimate goals (McShane & Glinow, Following the idea of previous studies from Aybas and
2017). However Macey et al. (2009) viewed engagement Acar (2017), Alfes et al. (2013), Guan and Frenkel (2018),
as an inspiration to be united and immersed, striving to Glarino (2013), and Babic et al. (2019). Finally, the authors
work hard, showing perseverance, focus, and involvement. conducted a study directed towards several previous scientific
In short, strongly engaged employees will bring about a articles which examine the effect of WLB and employee
positive outcome for the organization. Scholars need to engagement. Results show a positive effect on engagement
identify important factors which can be applied in a business level if employees perceived a higher balance between work
organization in boosting employee engagement. HRP, and private life. An organization which exemplifies caring for
WLB, intrinsic motivational, transformational leadership employees listens to the employees’ voice and takes notice
style, perceived organizational support, job satisfaction, of their interests or needs, provides flexibility in performing
and affective organizational commitment are some of their job will benefit due to the increasing engagement level
them (Putra et al., 2015; Kovjanic et al., 2013; Ang et al., (Alvi et al., 2014; Babic et al., 2019; Luturlean et al., 2020).
2013; HetalJani & Balyan, 2016; Dai & Qin, 2016; Choi Of course, engagement is not an easy matter that can be
et al., 2015). In this study, the HRP and the arrangement changed overnight, the organization needs to implement a
of WLB to enhance employee engagement was studied. We comprehensive program and policy that could maintain the
believe that by improving the program and implementation perception regarding work-life balance to help improving
of HRP,which also creates more balance between job employee engagement. therefore, for the third hypothesis,
and private life, the employee will reciprocate and show it was determined that:
a positive engagement attitude.
H3: WLB will have a significant and positive effect on
2.4. The Relationship Between Human employee engagement.
Resources Practice, Work-Life Balance,
and Employee Engagement Based on the overall discussion regarding the effect of
an independent variable on dependent variables, our fourth
To build this model, the researchers projected the hypothesis is:
relationship between HRP, WLB, and employee engagement.
Since the concept and study which discusses all those three H4: WLB will mediate the relationship between effective
variables is still limited, they tried to display the pattern human resource practice and employee engagement.
of relationships between each variable. The researchers
established that each variable has a significant effect on 3. Methodology
the other. First, they brought results from previous studies
which analyzed the effect of HRP on WLB. They studied 3.1. Participants
from five countries that provide evidence that effective
HRP will increase a sense of balance between work and life The participants for this study came from employees of
(Bui et al., 2016; Garg & Lal, 2016; Carvalho & Chambel, four Indonesian companies which operate in the services
2015; Miao & Cao, 2019; Babic et al., 2019). Thus, the first industry (banking, telecommunication, healthcare, and
hypothesis was determined to be: hospitality). Each company had branches across Java but
only branches in Jakarta were contacted for data collection
H1: Human Resource practice will have a significant because it has the highest population and also employee
and positive effect on employee WLB. concentration is high.While 52.6% of the participants were
male, 61.7% were aged below 30 years. Regarding the level
Regarding the effect of HRP on engagement, the of education, 63.5% had college degrees. Most respondents,
researchers found that most studies related to this matter 80.5%, reported they worked 40 hours a week at the most.
 Romat SARAGIH, Mahir PRADANA, Elvira AZIS, Thasania Fitri DRIANA, Naurah Salsabila RAMADHANA /
360 Journal of Asian Finance, Economics and Business Vol 8 No 7 (2021) 0357–0364

About 31.3% of the respondents had a working tenure

between 1 to 3 years in the organization, and 25.2% between

11

1
3 to 5 years. Finally, 67.1% of participants were officers
(supervisory role). The questionnaire was distributed to
1,200 potential participants, 810 were returned and for the

0.337**
10
final data analysis 723 useable responses were obtained. An

1
internet-based self-report survey was used to gather the data
for this study. The researchers maintaintained appropriate

0.673**

0.238**
levels of confidentiality and anonymity for all participants

1
(Pradana & Wisnu, 2021). All research communication was
forwarded through the chief point of contact (HR personnel)
in each organization.

−0.111**
−0.078*
−0.006
8

1
3.2. Measurements
Each measure used was a self-report measure that utilized

−0.016
0.012

0.023

0.022
participant perceptions to answer a series of questions.

1
All measures were scored using a 6-point continuum from
1 (“strongly agree”) to 5 (“strongly disagree”). HR practice

−0.240** −0.422** −0.118**

−0.010

−0.069
0.045
0.057
was measured using thirty-three items based on the work

1
of Djatmiko et al. (2020). The Cronbach’s alpha reliability
estimate was 0.955. Sample items include, ‘Compensation

−0.215** −0.111**
provided fulfills my needs’, ‘The results of performance

0.104**

0.122**
−0.033
0.048
appraisal are used as the basis for decisions on training and
5

1
career development, and ‘Career development is based on
employee performance.’ For WLB, the authors used nine

−0.114**
0.158**
0.355**

0.108**
items from Prasetio et al. (2017). The Cronbach alpha was

0.025
4

1
0.848 and sample items including ‘I have a heavy workload
which makes it difficult for me to live my personal life,
‘My personal life make it difficult for me to do a good job’,
−0.266**

−0.098**
0.792**

−0.018
−440**

0.014

0.037

0.050
and ‘Personal life & work complement each other.’ Finally,
3

for employee engagement, fourteen items were developed

based on Schaufeli et al. (2002). Several sample items were
−0.078* −0.505**

−0.478**

−0.128**
0.149**
0.738**
0.125**

−0.019
‘Enthusiastic about my job’, ‘Proud of the work that I do’, 0.018

0.015
2

and ‘My work is full of meaning and purpose.’ Cronbach

Alpha for these items was 0.914.
Table 1: Mean, Standard Deviation, & Correlations

−0.099**

0.134**
0.115**
−0.024

−0.052
−0.044
0.024

0.019

0.071

4. Results and Discussion

1

4.1. Results
Deviation
0.50
1.26
0.49
0.87
1.22
0.56
0.49
0.40
0.57
0.63

0.67
Std.

Data collected reveal an average of 4.61 for HRP,

which means it falls into the effective category. Participants
perceived that the HR function in the organization was
Mean

implemented well. As for the WLB, we have an average of

1.47
2.45
1.37
2.54
2.81
1.37
1.40
1.20
4.61
4.50

4.29

4.29 which falls into the moderate category. It means that

participants were satisfied yet less happy with the current
11 Engagement
9 HR Practice

WLB. For employee engagement, we had an average of

4 Education

10 Work-Life

4.5, which is considered strong. This is a good sign for

8 Worhour

Balance
6 Position
1 Gender

5 Tenure
3 Marital

organizations, however there is room for improvement.

7 Child
2 Age

Table 1 shows the value for means, standard deviations,

and correlations for all variables. The correlation between
HR practice and WLB is 0.673. This is in line with an earlier
 Romat SARAGIH, Mahir PRADANA, Elvira AZIS, Thasania Fitri DRIANA, Naurah Salsabila RAMADHANA /
Journal of Asian Finance, Economics and Business Vol 8 No 7 (2021) 0357–0364 361

study (Baptiste, 2008) and since it is above 0.500, we can articles that were used as references (Guan & Frenkel, 2018;
consider this is a strong relationship. The correlation between Glarino, 2013). The further result, WLB predicts employee
HR practice and WLB with employee engagement is 0.238 engagement (coefficient, 0.346; p-value < 0.01) and this is
and 0.337. Those results support the studies from Guan and following the findings of the previous articles (Babic et al.,
Frankel (2018) and Babic et al. (2019). Both show a value 2019; Luturlean et al., 2020). All in all, hypotheses H1 and
under 0.500 which means it has only a weak relationship. H3 were accepted, while rejecting H2.
Macro Process program developed by Hayes (2018) Table 3 describes the direct and total effect of HR
was used to examine the effect of the independent variable practice on employee engagement. There is no direct effect
(HR practice and WLB) on the dependent variable because p > 0.001. Our study found that no matter what type
(employee engagement). The researchers applied this of HR program or policy was implemented in organizations,
approach because it has benefited from the application of it did not affect the level of engagement directly. However,
the bootstrap approach. According to Sekaran and Bougie with the introduction of WLB as a mediator, we have a
(2016) bootstrap is a statistical method based on building a significant total effect (p-value < 0.001). WLB proved as an
sample distribution for a statistic by re-sampling of existing effective mediator in the relationship between HR practice
data. The advantage of bootstrap is that there is no need for and employee engagement. The H4 hypothesis was accepted.
a normality distribution assumption which in the real world Figure 1 displays the relation flow between variables.
is difficult to emerge. Costa et al. (2014), Gray et al. (2015),
Oh and Oh (2017), and Luturlean et al., (2020) are amongst 4.2. Discussion
scholars who used such an approach. In this study, WLB will
be consider as mediating variable if the Confidence Interval The current study provides new insight into the
value from the Upper Level and Lower Level (ULCI and examination of the relationship between studied variables.
LLCI) did contain 0. While we support the result regarding the significant effect
Before we discussed the mediation analysis, we of HR practice on WLB and between WLB and employee
examined the effect between variables. Table 2 provides engagement, the results we acquired reveal there is no
the regression coefficient and it showed that HR practice effect from HR practice on employee engagement directly.
becomes a predictor of WLB (coefficient, 0.742; p-value < We understand it takes time to build stronger engagement.
0.001). This result is in line with the findings of Garg and Not only time but also specific programs which often
Lal (2016) and Carvalho and Chambel (2015). But, in this have no direct effect, or can not be felt immediately. Yet,
study, we found that the employee engagement level was organizations need to have and implement comprehensive
not determined by the HR program (coefficient, 0.024; HR programs which include the opportunity to enhance
p-value > 0.05). This means our result differs from previous employee’s skills and knowledge, provide a fair and clear

Table 2: Regression Coefficient and Model Summary

Work-Life Balance Engagement

Coeff. S.E. p-value Coeff. S.E. p-value

HR Practices 0.742 0.030 0.000 0.024 0.056 0.671
Work-Life Balance – – – 0.346 0.051 0.000
Constant 1.076 0.141 0.000 2.621 0.200 0.000
R-Square 0.453 R Square 0.114
F = 595.878 F = 46.343
p = 0.000 p = 0.000

Table 3: Effect of Human Resource Practice on Employee Engagement

Effect SE Boot LLCI Boot ULCI p-value

Direct Effect 0.024 0.056 −0.086 0.133 0.671
Total Effect 0.280 0.043 0.197 0.364 0.000
Mediation of Work-Life Balance 0.257 0.043 0.174 0.342
 Romat SARAGIH, Mahir PRADANA, Elvira AZIS, Thasania Fitri DRIANA, Naurah Salsabila RAMADHANA /
362 Journal of Asian Finance, Economics and Business Vol 8 No 7 (2021) 0357–0364

employee engagement. This means that organizations need to

Work-Life
Balance
find ways to help employees achieve a better WLB.
p value < 0.01 p value < 0.01 Based on these findings, organizations can optimize their
a = 0.742 b = 0.346 HR policies and apply various techniques to improve WLB
and ensure employee well-being. Policies that can reduce
the tension between work and life such as flexible working
HR Practices Engagement hours, special leave for family matters, helping them provide
c` = 0.024 help with children or elderly parents. The cross-sectional
p value > 0.05 approach is one of the weaknesses of this study because it
is difficult to determine how the variables affect each other
Figure 1: Meditation Model of Work-Life Balance in the long term. In this case, longitudinal studies should
be applied to further studies to cover a broader perspective.
career path, flexible and competitive remuneration packages Participants from all regions of Indonesia or at least covering
that can be chosen by employees, supportive and friendly Java Island and from various industries should also be
work environment which is marked with full attention and considered for future studies if they want to gain a broader
care from the management. and deeper understanding of employees in Indonesia.
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