The Effect of Work-Life Balance and Compensation on Employee Performance with Job Satisfaction as a Mediation Variable at PT. Indatex Palur

This study aims to examine and analyze the effect of work-life balance and compensation on employee performance, with job satisfaction serving as a mediating variable at PT. Indatex Palur. This research employed a quantitative approach. The sample consisted of 237 respondents, and the sampling technique used was descriptive statistical analysis. Data were collected through the distribution of questionnaires to employees of PT. Indatex Palur using a six-point Likert scale. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with the assistance of SmartPLS software. The results indicate that work-life balance does not have a significant effect on employee performance. In contrast, compensation has a positive and significant effect on employee performance. Work-life balance also does not have a significant effect on job satisfaction, whereas compensation has a positive and significant effect on job satisfaction. Furthermore, job satisfaction does not have a significant effect on employee performance. The mediation test results reveal that job satisfaction is unable to mediate the effect of work-life balance on employee performance or the effect of compensation on employee performance. These findings suggest that compensation is the most dominant factor in improving employee performance compared to work-life balance and job satisfaction. Therefore, the company should place greater emphasis on developing a fair and competitive compensation system as an effort to enhance employee performance.