Work-Life balance and Work Culture on Employee Loyalty in
Construction Companies: The Mediating Role of Job Satisfaction
Fatmah Bagis
1
, Wiwik Rabiatul Adawiyah
2
fatmahbagis2014@gmail.com , wiwikra@gmail.com
Phd Student, Faculty Economics and Business, Universitas Jenderal Soedirman Purwokerto
1
,
Faculty Economics and Business, Universitas Muhammadiyah Purwokerto
1
Faculty Economics and Business, Universitas Jenderal Soedirman Purwokerto
2
Abstract. This study is to analyze the influence of work culture and work-life balance of employees on
employee loyalty and job satisfaction as a mediating variable. The population in this study were construction
company employees in Payakumbuh, South Sumatra and the sample used was 135 employees from different
companies. The analysis uses PLS analysis, and the results show that there is a significant influence between
the variables of work culture, work-life balance on employee loyalty. The results also support the hypothesis,
that work culture and work balance have an effect on employee job satisfaction. Hypothesis support appears
in the influence of job satisfaction on employee loyalty. The indirect effect is evidenced by the acceptance of
the hypothesis that job satisfaction can mediate the influence of work culture, work-life balance on employee
loyalty.
Keywords : work-life balance, work culture, job satisfaction employee loyalty
1 Introduction
The development of construction work is currently becoming more complex and more advanced. With the
demands on the workforce such as in terms of mastery of new technology, tighter limits or times, changing
demands on work results, as well as changes in work regulations can create a situation that puts pressure on
employees. This stressful situation causes employees to often experience anxiety, boredom, resulting in stress. [1]
also identified that the nature of the production process that occurs in the construction industry makes construction
work dangerous and full of risks that can lead to stress.
Every company has goals, both short-term and long-term goals that can be achieved through organizational
systems and activities. In order to achieve this goal, the company must have quality human resources. The key to
the advancement of a company is the existence of employees who act as planners, implementers and controllers
who play an active role in achieving company goals. The importance of human resources to do work with skills,
have a high will and have high loyalty to the company [2].
Employee loyalty has a positive impact such as increasing productivity, reducing turnover, increasing
discipline, increasing employee morale, reducing complaints and certainly benefiting the company. For this
reason, a work balance is needed for employees so that employee work productivity is maintained. According to
Weckstein (2008:10): "Work-life balance is a balance concept that involves ambition or career with happiness,
leisure, family, and spiritual development". The goal of work-life balance is to establish and maintain a positive,
productive work environment that allows people to balance their personal and professional obligations. This
increases loyalty and productivity. Imbalance causes stress and tension. Long work hours and physically
demanding professions make it difficult to balance work and family obligations and are also linked to health
problems like depression [3][4][5][6][7].
Employee loyalty can also be influenced by work culture. Work culture can distinguish one company from
another, starting from the habits within the company to the rules that company employees may or may not do.
Work culture in an organization occurs when a work unit or organization faces a problem related to the survival
of an organization that involves external and internal changes. Organizational culture reflects widely held values
and assumptions rooted in an organization, whose members learn over a long period of time as they solve
problems.
According [8] factors that influence loyalty are divided into two groups, namely Satisfies (motivator
factors) are factors or situations needed as a source of work loyalty which include rewards, growth, promotions,
responsibilities, career development, job challenges and achievements. self and dissatisfies (hygiene factors) are
factors that become sources of loyalty, which consist of: salary, wages, company rules, interpersonal relationships,
quality of supervision from superiors, work safety, job satisfaction, work environment and work life balance [9].
In his research, he explained that job satisfaction experienced by employees can foster a sense of loyalty to the
company and create a love for the work that employees have. One of the things that helps people do their jobs
well is job happiness.
This research was conducted on construction employees from 10 construction companies located in
Payakumbuh, West Sumatra. Payakumbuh is a metropolitan city with adequate population and infrastructure. The
ICBAE 2022, August 10-11, Purwokerto, Indonesia
Copyright © 2022 EAI
DOI 10.4108/eai.10-8-2022.2320908