Fundamental and Applied Management Journal
Vol. 4 No. 3 (2026): September

Job Satisfaction as a Mediator of Work–Life Balance, Work Engagement, and Employee Performance: Evidence from a Banking Branch in Indonesia

Sasqia Laselika Efendi (Universitas Semarang, Indonesia)
Endang Rusdianti (Universitas Semarang, Indonesia)
Indarto (Universitas Semarang, Indonesia)



Article Info

Publish Date
10 Aug 2026

Abstract

Employee performance in the banking industry is influenced by both organizational and psychological factors. Previous studies have reported inconsistent findings regarding the relationships among work–life balance, work engagement, job satisfaction, and employee performance, particularly concerning the mediating role of job satisfaction in banking organizations. This study examined the relationships between work–life balance, work engagement, job satisfaction, and employee performance and assessed whether job satisfaction functions as a mediating variable among employees of Bank BNI Karangayu Branch, Semarang, Indonesia. A quantitative cross-sectional explanatory design was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Data were collected through a structured questionnaire using a five-point Likert scale. The study involved employees of Bank BNI Karangayu Branch as the research population. (Tambahkan jumlah populasi, jumlah sampel akhir, teknik sampling, response rate, serta periode pengumpulan data sesuai data asli penelitian.) Bootstrapping with 5,000 resamples was performed to evaluate the significance of the direct and indirect relationships. The analysis indicated that work engagement was positively associated with job satisfaction (β = 0.465, p < .001) and employee performance (β = 0.214, p = .013). Work–life balance was positively associated with job satisfaction (β = 0.509, p < .001) and employee performance (β = 0.360, p < .001). Job satisfaction was positively associated with employee performance (β = 0.414, p < .001). Indirect-effect analysis suggested that job satisfaction partially mediated the relationships between work engagement and employee performance (β = 0.193, p = .005) and between work–life balance and employee performance (β = 0.211, p < .001). The structural model demonstrated substantial explanatory power (R² = 0.925 for job satisfaction and R² = 0.945 for employee performance). (Tambahkan 95% bootstrap confidence intervals sesuai output SmartPLS.) The findings suggest that higher levels of work engagement and work–life balance are associated with higher employee performance, both directly and indirectly through job satisfaction. These results support the complementary mediating role of job satisfaction in the banking context and provide empirical evidence that employee well-being and work engagement are important factors associated with employee performance.

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Journal Info

Abbrev

FAMJ

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Strategic and Operations Management, addressing strategic decision-making, operational excellence, supply chain, process improvement, and performance management. Business and International Management, covering global strategy, cross-border operations, internationalization, and comparative management ...