Advances in Economics & Financial Studies
Vol. 4 No. 2 (2026): February - May

Employee Engagement as the Key Mechanism Driving Leadership and Work-Life Balance Toward Employee Performance

Rachmawati Rachmawati (Institut Teknologi dan Bisnis Nobel Indonesia, Makassar, Indonesia)
Badaruddin Badaruddin (Institut Teknologi dan Bisnis Nobel Indonesia, Makassar, Indonesia)
Fitriani Latief (Institut Teknologi dan Bisnis Nobel Indonesia, Makassar, Indonesia)



Article Info

Publish Date
31 May 2026

Abstract

Purpose: This study examines the influence of leadership and work-life balance on employee performance through employee engagement as a mediating variable. The study hypothesizes that leadership and work-life balance positively affect employee engagement and employee performance, both directly and indirectly. Research Method: This study employed a quantitative approach with a causal-correlational design. Data were collected through questionnaires distributed to 100 employees selected from a population of 144 employees using simple random sampling. The research variables consisted of leadership, work-life balance, employee engagement, and employee performance. Data analysis was conducted using Structural Equation Modeling–Partial Least Squares (SEM-PLS). Results and Discussion: The findings indicate that leadership and work-life balance positively and significantly affect employee engagement and employee performance. Employee engagement also has a significant positive effect on employee performance. Furthermore, employee engagement significantly mediates the relationship between leadership and employee performance, as well as between work-life balance and employee performance. Implications: The findings emphasize the importance of strengthening leadership quality and implementing work-life balance policies to improve employee engagement and organizational performance in the financial service industry. Originality: This study integrates the Job Demands-Resources Model and Social Exchange Theory by positioning employee engagement as a mediating mechanism in the multifinance industry, a gap noted in previous studies.

Copyrights © 2026






Journal Info

Abbrev

AEFS

Publisher

Subject

Economics, Econometrics & Finance

Description

Founded in 2023, Advances in Economics & Financial Studies publishes original research that promises to advance our understanding of Economics & Financial Studies over diverse topics and research methods. This Journal welcomes research of significance across a wide range of primary and applied ...