The Influence of Work Life Balance on Turnover Intention Through Organizational Commitment (On Employees of Forwarding Company in East Java)

Dia Webit Hilasseba¹, Khoirur Rozaq²

^1,2 Departement of Management, Faculty of Economics and Business, Universitas Negeri Surabaya, Surabaya

ABSTRACT: This study aims to evaluate the relationship between work-life balance and intent to quit among employees of forwarding company in esat java using organizational commitment. This research, which has 35 respondents, uses stratified disproportionate random sampling and quantitative techniques. This work use the SmartPLS 3.2.9 software to perform SEM statistical analysis. There are many employees who feel uncomfortable extending their work hours to include activities related to their jobs. Employees of forwarding company in esat java indicate that turnover intention falls into the category of turnover, meaning that many employees have a work commitment and consistently finish their assignments on time. The employee commitment policy of an organization should be maintained by including employees in the process of assessing organizational performance and facilitating two-way communication in a transparent and timely manner. This might highlight the lack of trust that exists between businesses and their employees.According to the study’s findings, work-life balance has a minor but favorable impact on turnover intention in addition to having a positive and significant affect on organizational commitment. Moreover, a mediating element in the relationship between work-life balance and desire to quit may be organizational commitment among forwarding company in east java employees.

KEYWORDS:Work Life Balance, Intention to Leave, Organizational Commitment

INTRODUCTION

The industrial sector in the global world continues to be fierce, to survive and compete with other business people in the era of the global world, business people are required to have excellence and strong competition because of increasingly harsh rivalries (Setiawan & Harahap, 2016). Business players are required to have high excellence and effective and quality management because they will compete for maximum profit. Therefore, companies are required to have quality and competent resources. (Indrayanti & Riana, 2016). In improving its ability, the role of human resources as the driving force of company operations is needed (Mustika & Widiastoeti 2023). Since human resources are considered a valuable asset of the business, They are necessary in order to provide organizational actors with goals.  (Pradnyani & Rahyuda, 2022).

According to Prihadyanti and Laksani (2016) It is evident that innovation is the key to success in competition and company expansion.  In the current era of globalization, many organizations and companies are faced with permanent and unpredictable competition made more intense by advancements in technology, modifications to the market, and adjustments to consumer demands. (Momeni et al., 2014).   Innovation is an aspect that companies need in order to gain an edge over the competition. (Barney, 1991).

Companies are also more interested in innovating, implicitly or explicitly, because it has been proven to increase productivity through increased efficiency and effectiveness. (Agustianingsih, 2022). Every company must have a target to be achieved, so a balance is needed in the lives of employees.  The ability of individuals to balance between personal or professional life in the world of work is known as Work life balance and pertains to the notion that employees may function optimally when their personal and professional lives are harmonious. (Yusnita et al., 2022).

One of the primary worries is the issue of human resources, which requires companies to use development strategies and try to retain their employees. (Mardikaningsih & Arifin, 2022). If the human resources of an organization cannot develop properly, the quality of the company or organization will decrease. (Abdullah, 2017)

The company’s failure to manage its human resources can lead to various forms of employee behavior, including the desire to move, which ultimately causes employees to resign from their jobs (turnover intention), which is the desire of workers to choose to resign from the company and how emotional they are to leave the company (turnover intention). (Pranata & Netra, 2019).

According to Hafid and Prasetio (2017) The balance between work and life is a determining component of employee turnover intention. Khasanah et al., (2022) emphasize that an employee’s capacity to manage his personal and professional lives is a key component of work life balance both in his work and from within the personal or external, by paying attention to matters where not committing work violations while carrying out his responsibilities at work or vice versa, and trying to realize satisfaction in all aspects proportionally or fairly.

According to Vellya et al., (2020) Because it is difficult for workers to balance personal life and professionalism (work life balance), it can cause their desire to leave their position in their job (turnover intention). Crow & Lee (2012) say that The mental state of organizational commitment is one in which an employee has, which can be observed from how loyal they are to the goals of the company.

With a good work-life balance that is understood by workers given that the company provides a family-friendly culture, workers who balance their personal and work lives will have more commitment and feel responsible for treating the company well. (Talukder, 2019).  Because the balance between work life and commitment to the company is very important for company performance and family happiness, both are very important. (Nirmalasari 2018).

Kinasih et al. study, (2022) workers with low commitment to the organization (organizational commitment) will leave the company without considering organizational losses. When compared to workers with lower degrees of commitment, employees with higher levels of devotion often work longer hours. (Kharismawati & Dewi 2016).    When an employee aligns themselves with a company that aims to uphold its membership so that they are responsible, involved and bound to all matters related to how to achieve business goals (Muis et al., 2018).  Meanwhile, people who are not very committed to the organization tend not to care about the fate of the organization, their vision, mission or goals.

Not only does work-life balance affect turnover-intention, variability that may have an impact on turnover intention is conveyed by Suhanto (2009) who explains that organizational commitment as a predictor of turnover intention..

The study was carried out at forwarding company in east java, this company was founded in 2015 which is located at Jl. Teluk Kumai Timur No. 85a, Perak Utara, Kec. Pabean Cantikan, Surabaya, East Java 60213. The Company provides freight forwading services to carry out business aimed at representing the interests of efforts in the representation of the needs of the owner of the goods in the management of all actions required for the delivery and receipt of goods, and also provides consulting services, customs clearance, land and sea transportation for the final destination for general cargo, personal items and even cargo that is excess or heavy dimensions.

Based on the findings of an interview conducted with an HR manager of the company, information was obtained from 60% of employees complaining about more working hours due to lack of time to meet with family.  The range of employee working time per day is more than 8 hours, namely 9 – 10 hours, so it is different from normal working time. This is felt to burden employees’ lives outside of work, so that this affects employees’ intention to stay or leave work.

Turnover that occurred in 2022 the percentage of employees who resigned reached 10% which is already at the threshold of reasonableness. As Gillies (1989) suggests that the reasonable limit of employee turnover is between 5% and 10% per year, and that if it exceeds that, it will be a big problem.  Employee turnover data for the last 1 year of 2022 shows that there were 3 employees who left the company, as well as workers who opted out during training or left the company. This condition can cause losses to the company, including losing high-quality workers and good achievements, reducing costs for recruiting new employees, and providing better training to new employees.

The Company has a high turnover intention rate which can be identified that the workforce is unhappy and dissatisfied with their work in the company. Because more and more workers leave or quit the business every year, this situation is not in accordance with good organizational commitment so the company must pay attention to this.

In accordance with the findings described above so that there are phenomena and research gaps found, the authors think of making the work-life balance variable as variable X, Turnover-intention as variable Y and organizational commitment as variable Z. In this case the authors intend to conduct research entitled “The Effect of Work Life Balance on Turnover Intention Through Organizational Commitment in Employees of Forwarding Company in East Java “.

LITERATURE REVIEW

Work Life Balance

The reliability of a person balancing work professionalism or individual life is commonly called work-life balance. (Ramadhani 2013). According to Yusnita et al., (2022) A healthy and supportive workplace where workers find harmony regarding their individual and work responsibilities is what is known as work-life balance. This will help employees be more loyal and productive at work. Another opinion by Handayani (2013) which reveals that when someone is able to divide roles and feel satisfied with their work, it’s known as work life balance. Employers may attain parity in their home and professional lives by implementing work life balance.. (Mathur & Purohit, 2013).  As stated Clarke et al., (2004)  that understanding work life balance from the outset is critical as it is usually associated with a point of equilibrium or an attempt to reconcile different roles in life.. (Lazar, Osoian, & Ratiu, 2010).

Turnover Intention

Based on Rivai (2015) Employees who have the intention of leaving their current employer or moving to a different one are said to have a turnover intention. The likelihood of a person leaving their position is known as turnover intention. A number of variables, including organizational leadership ethics, organizational commitment, and organizational satisfaction, may impact an employee’s desire to relocate and hence motivate them to do so. (Fayyazi & Aslani 2015). Culpepper (2011) mentioned that one of the best ways to predict employee turnover intention that will occur in an organization is to remember turnover intention. According to Indrayanti & Riana (2016) Turnover intention is a person’s tendency to leave an organization for various reasons, one of which is motivation to obtain a suitable position..

Organizational Commitment

Organizational commitment indicates an individual’s intense feeling of connection to their organization and the feeling that they are part of it. Organizational commitment increases work commitment, productivity, and the responsibilities associated with organizational commitment. (Sentana & Suryana, 2016). Employees’ sense of loyalty and ability to concentrate on the goals set by the organization are signs of organizational commitment. (Indrayanti & Riana, 2016). Wardana et al., (2020) The degree to which employees embrace and believe in the company’s objectives and want to stick with it is known as organizational commitment. Badrianto & Ekhsan (2021) Organizational commitment is an agreement made by all members of the organization about standards, implementation, and goals that will be achieved within a certain period of time. Meyer et al., (1993) also explains that organizational commitment is emotional closeness, closeness to the organization, and a motivation to continue joining the organizationWorkers that are very committed to the firm will work for a longer amount of time than those who are not as committed. (Kharismawati & Dewi, 2016).

Work Life Balance and Organizational Commitment

The results of demonstrate how work life balance and organizational commitment are related with Islam et al.,  (2015)  demonstrates that organizational commitment and work-life balance have a favorable and substantial impact. When workers are able to maintain the harmony of work professionalism and their individual lives. family, workers will put in extra effort for the organization beyond their normal duties and obligations. It is different from the findings of Yusnita et al., (2022) that organizational commitment is negatively and significantly impacted by work-life balance. Work-life conflict, in contrast to a healthy work-life balance, lowers employee well-being and raises stress levels, which may result in a decline in commitment and employee disengagement.

H1 : Organizational commitment is significantly enhanced by work life balance.

Organizational Commitment and Turnover Intention

Wisaksono (2014) Expressing organizational commitment is when an employee shows feelings, involvement, and loyalty to his job, organization, or organizational unit. Another opinion was expressed Sugiono & Safitri (2019) Workers’ desire to leave the company is also influenced by organizational involvement; this is a psychological structure which can describe the relationship of organizational members to their organization and influence their choice to remain a member. In Firdaus and Lusiana’s research (2020) which shows the findings that the commitment made by the organization has a detrimental and substantial effect on the motivation to change. Setiawan & Harahap (2016) that organizational loyalty plays a positive and significant role in employee turnover goals, which means that very high workforce satisfaction and fairly low workforce satisfaction will be found among a workforce that is committed to the company.

H2 : Turnover intention is significantly impacted negatively by organizational commitment.

Organizational Commitmenet and Turnover Intentiom

The balance between professionalism at business and in the home (work life balance) will lead to increased work performance, reduced absenteeism, low turnover, good morale among employees, and reduced conflict. (Vellya, Pio, & Rumawas, 2020). Wardana et al., (2020) the workforce’s attempts to strike a balance between professionalism in the workplace and time spent on activities outside of it; if this balance is not achieved, there will be a higher likelihood of employee turnover. The findings of Prayogi et al., (2019) that the alignment between professionalism in the world of work and individual life (work life balance) has a positive and significant impact on the desire to leave work (turnover intention). the results of research by Fayyazi & Aslani (2015) that work and life balance has a negative impact (work life balance) on the goal of leaving work (turnover intention). When workers have harmony between their work and life professionalism, they are less likely to quit.

H3 : The desire to leave is significantly impacted negatively by work-life balance.

Work Life Balance, Turnover Intention and Organizational Commitment

Work life balance has a major impact on employee loyalty to the company, according to study by Azeem and Akhtar (2014). Stated differently, an employee’s level of dedication increases as their work-life equilibrium improves. To put it another way, those who show greater degrees of loyalty to the organization are less likely to leave. In line with Al Momani (2017). Work-life balance and organizational commitment are two fundamental ideas that may have an impact on turnover intention. Studies looking at the relationship between work-life balance and organizational commitment, turnover awareness intention, and commitment have shown a moderating influence, according to Oktaviani (2018). Wardana et al (2020) found that organizational commitment has no impact on the considerable effect of work-life balance on turnover instructions.

H4 : Work-life balance influences intention to leave, while organizational commitment acts as a mediating factor.

III.  RESEARCH METHODS

Quantitative methods were used in this study. Definition of quantitative study techniques. Sugiyono (2013) argues that the type of research which is based on the positivist principle where it aims to know the population or a certain sample uses the technique of taking data by probability sampling which is used to test the previous hypothesis. This study uses a population of workers at Forwarding Company in East Java totaling 35 workers. researchers can use the population as a sample. (Sugiyono, 2019). This study uses SEM statistical analysis using SmartPLS 3.2.9 software.

RESULTS AND DISCUSSION

Composite Reliability and Discriminant Validity

Table 1 demonstrates that the variables with composite reliability and Cronbach’s alpha values more than 0.70 are those pertaining to work-life balance, organizational commitment, and willingness to quit. Consequently, the suggested variables pass both the Cronbach’s alpha and the composite reliability test. This suggests that each variable has a high level of dependability. The AVE value is used to evaluate construct validity. If the final AVE value is more than 0.50, the produced model can get a satisfactory rating. (Ghazali, 2015). Every variable in Table 1 has an AVE value greater than 0.50.

Table 1. Composite Reliability, Cronbach’s Alpha and AVE

Source: Data Processed 2024

The result of R-Square Analysis

Table 2. The Result of R-Square Analysis

Source: Data Processed 2024

The work life balance variable’s R-Square value on the turnover intention variable has an R-Square of 0.190, according to table 2. Thus, the work-life balance variable may account for 19% of the turnover intention construct variable’s explanation, whereas factors outside the study have an impact on 81% of the variable. The work-life balance variable on organizational commitment has an R-Square value of 0.371, according to the table above. Thus, the work-life balance variable can be explained by the organizational commitment construct variable in 37.1% of cases, while other factors account for the remaining 62.9% of the variance.

The Q-Square predictive relevance of the R-Square value can be considered in evaluating the model. The following is the calculation of the Q-Square value:

Table 3. Q-Square Predictive

Source: Data Processed 2024

From the Q-Square calculation, it is evident that the predictive relevance Q-Square value. This proves that the value calculated from the calculation> 0 (zero). It can be said that this relevance has a predictive relevance.

The Result of Hypothesis Analysis

The values for organizational commitment and turnover intention have a negative link, as shown by the score of -0.528. Given that employee loyalty to the company lowers staff turnover, the resultant coefficient is negative, supporting the theory. Based on the T-Statistics result of 3.137 ≥ 1.96, it can be concluded that the organizational commitment variable has a significant negative impact on turnover intention. By 0.609, the work-life balance variable has a favorable impact on organizational commitment. Work-life balance and workers’ organizational commitment to the firm are positively correlated, according to the coefficient that appears. As seen by the T-Statistics value of 3.716 > 1.96, the work-life balance variable seems to have a strong positive influence on organizational commitment. Work-life balance features, on the other hand, had a 0.200 negative influence on the urge to quit. Employee turnover and work-life balance are positively correlated, according to the computed coefficients. As seen by the T-Statistics of 0.877 ≤ 1.96, the work-life balance variable has both a positive and negative impact on plan to leave.

Demonstrating, using organizational commitment as an intervening variable, the indirect impact of work-life balance on turnover. The degree of the correlation is shown by computed T-Statistics 2.11 > 1.96, with a coefficient of -0.322. Thus, although organizational commitment variables may mitigate this effect, work-life balance at Forwarding Company in East Java has a negative impact on employees’ inclinations to quit.

Table 4. Direct Effect and Indirect Effect

Source: Data Processed 2024.

DISCUSSION

The Effect of Work life balance on Turnover Intention

Based on the results of the calculation, it shows that work life balance on turnover intenion has a positive but insignificant effect. Based on the results of research on employees of Forwarding Company in East Java in the application of work life balance practices, it is said that it is not good enough because many employees cannot balance work time and life lived such as work balance with time with family. These results are reinforced by the findings of Novitasari & Dessyarti (2022) which say that work life balance has a significant negative effect on turnover intention.

According to Yusnita et al., (2022) A healthy and supportive job that results in workers finding harmony regarding their individual and work responsibilities is what is known as work life balance. Based on the results of research on employees of Forwarding Company in East Java in the application of work life balance practices, it is said that it is not good enough because many employees cannot balance work time and life lived such as the balance of work with time with family.

The Effect of Work Life Balance on organizational commitment

The results of the calculation demonstrate that Forwarding Company in East Java workers’ organizational commitment is positively and significantly impacted by the work-life balance variable. Work-life balance has a favorable and substantial influence on organizational dedication, according to a study conducted on Forwarding Company in East Java personnel. There is a strong and positive correlation between work-life balance and organizational commitment, according to studies by Jin et al. (2021), Sabir & Gani (2020), Islam et al. (2019), and Wardana et al. (2020). These results provide credence to the study’s conclusions.

This proves that even though employees of Forwarding Company in East Java are required to work overtime to complete work, there is no conflict between life outside of work and time with family. So that the demands of employees to meet the needs of their families do not reduce productivity in the office and have a positive impact on the sense of organizational commitment. Based on the description above, that many employees are able to balance their time to work and activities outside of work so as to encourage a high sense of commitment to the organization..

The Effect of Organizational Commitment on Turnover Intention

The data test results show a negative and significant relationship between the organizational commitment variable and the intention of Forwarding Company in East Java employees to leave the company. In other words, the more committed a worker is to the organization, the more likely it is that they will intend to leave the company. This study is in line with the findings of Indrayanti & Riana (2016), Pranata & Netra (2019), and Oktaviani (2018), who claim that organizational commitment to turnover intention has a negative and significant affect.

Employee quality at Forwarding Company in East Java is adequate due to the fact that most workers exhibit a strong feeling of loyalty to the firm by giving their all, despite the fact that many of them have short tenure. Workers that are content and at ease in their workplace may be identified by their conduct there. They also have a higher feeling of loyalty, which reduces the likelihood that they would leave.

The Effect of Work Life balance on Turnover Intention through Organizational Commitment

Organizational commitment may act as a mediating factor between the impact of work-life balance and workers’ intentions to leave of forwarding company in esat java, according to the study of the indirect effect output. According to the findings of forwarding company in esat java research, employees have felt at ease at work, despite the fact that some of them struggle to strike a balance between their personal lives and professionalism at work, which can make it difficult for them to manage their time. Workers at forwarding company in esat java are very devoted to the firm and treat it with professionalism, which is required.

Because of this, a lot of workers do not want to quit or hunt for other employment. We may infer that there is a negative correlation between work-life balance and the desire to leave an organization and organizational commitment

CONCLUSION

Work-life balance has a positive and insignificant relationship with turnover intention; on the other hand, it has a positive and significant relationship with organizational commitment; work-life balance also has a negative and significant relationship with turnover intention; and work-life balance and turning intentions can be mediated by organizational commitment.

Companies should avoid often offering overtime, provide feedback or reciprocity to workers who do so, and encourage them to seek help when they encounter work-related challenges so that they may be handled. This is particularly important when it comes to time management issues arising from demands on employees’ time between work and family obligations. There is between the company and its employees. The company keeps its employees’ organizational commitment strong, and even if there are better opportunities from other companies, employees no longer feel the need to move because they have found good opportunities at  forwarding company in esat java. Furthermore, it’s critical that the organization provide assistance to its staff; every worker should have equal access to professional growth opportunities in order to foster a strong feeling of devotion to forwarding company in esat java.

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