Examining the Influence of Employer Branding and Work-Life Balance on Employee Retention: The Mediating Role of Organizational Commitment

Yollanda Salsabillah Wibowo; Muthia Pramesti

doi:10.59261/inkubis.v8i2.341

Authors

Yollanda Salsabillah Wibowo Universitas Indonesia
Muthia Pramesti Universitas Indonesia

DOI:

https://doi.org/10.59261/inkubis.v8i2.341

Keywords:

Employer Branding, Work-Life Balance, Organizational Commitment, Employee Retention, Automotive Financing

Abstract

Background: The automotive finance industry in Indonesia faces the challenge of high employee turnover, which negatively affects workforce stability and the achievement of organizational objectives. This situation highlights the need to implement human resource management strategies that enhance employee retention.

Objective: This study aims to examine how work-life balance and employer branding influence employee retention in an automotive finance company in Pekanbaru. Organizational commitment is examined as a mediating variable.

Methods: A quantitative research design was employed, involving 167 employees who completed questionnaires. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS).

Results: The results indicate that work-life balance and employer branding have positive and significant effects on employee retention and organizational commitment. Furthermore, organizational commitment was found to mediate the relationship between work-life balance and employer branding with employee retention. These findings suggest that a supportive work-life balance and a strong corporate image can strengthen organizational commitment and encourage employees to remain with the company.

Conclusion: To sustainably improve employee retention, this study highlights the importance for organizations to strengthen work-life balance initiatives and employer branding strategies.

Downloads

Download data is not yet available.

References

Alkaabi, A., Alghizzawi, M., Daoud, M. K., & Ezmigna, I. (2024). Factors affecting employee turnover intention: An integrative perspective. In Studies in Systems, Decision and Control (Vol. 525). https://doi.org/10.1007/978-3-031-54383-8_57

Allen, N. J., & Meyer, J. P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of Occupational Psychology, 63(1), 1–18. https://doi.org/10.1111/j.2044-8325.1990.tb00506.x

Ambler, T., & Barrow, S. (1996). The employer brand. Journal of Brand Management, 4(3), 185–206. https://doi.org/10.1057/bm.1996.42

Arasanmi, C. N., & Krishna, A. (2019). Employer branding: perceived organisational support and employee retention – the mediating role of organisational commitment. Industrial and Commercial Training, 51(3). https://doi.org/10.1108/ICT-10-2018-0086

Backhaus, K., & Tikoo, S. (2004). Conceptualizing and researching employer branding. Career Development International, 9(5), 501–517. https://doi.org/10.1108/13620430410550754

Blau, P. (2017). Exchange and power in social life. Routledge.

Cegarra‐Leiva, D., Sánchez‐Vidal, M. E., & Gabriel Cegarra‐Navarro, J. (2012). Understanding the link between work life balance practices and organisational outcomes in SMEs. Personnel Review, 41(3), 359–379. https://doi.org/10.1108/00483481211212986

Cropanzano, R., & Mitchell, M. S. (2005). Social Exchange Theory: An Interdisciplinary Review. Journal of Management, 31(6), 874–900. https://doi.org/10.1177/0149206305279602

Dessler, G. (2017). Human Resources Management 15th Ed. Fortune.

Greenhaus, J. H., & Allen, T. D. (2011). Work-family balance: A review and extension of the literature. Handbook of Occupational Health Psychology (2nd Ed.)., (August).

Haar, J. M., Russo, M., Suñe, A., & Ollier-Malaterre, A. (2014). Outcomes of work-life balance on job satisfaction, life satisfaction and mental health: A study across seven cultures. Journal of Vocational Behavior, 85(3). https://doi.org/10.1016/j.jvb.2014.08.010

Hadi, N. U., & Ahmed, S. (2018). Role of employer branding dimensions on employee retention: Evidence from educational sector. Administrative Sciences, 8(3). https://doi.org/10.3390/admsci8030044

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203.

Hendriana, E., Christoper, A., Zain, H. O. A., & Pricilia, N. (2023). The Role of Employer Branding in Work-life Balance and Employee Retention Relationship among Generation Z Workers: Mediation or Moderation? Jurnal Manajemen Teori Dan Terapan| Journal of Theory and Applied Management, 16(1). https://doi.org/10.20473/jmtt.v16i1.41703

Klein, H. J., Molloy, J. C., & Brinsfield, C. T. (2012). Reconceptualizing workplace commitment to redress a stretched construct: Revisiting assumptions and removing confounds. Academy of Management Review, 37(1). https://doi.org/10.5465/amr.2010.0018

Otoo, F. N. K. (2019). Human resource management (HRM) practices and organizational performance: The mediating role of employee competencies. Employee Relations, 41(5). https://doi.org/10.1108/ER-02-2018-0053

Pohan, Y. A., Alima, N., Khairani, K., Prasati, D., Sitanggang, D. N., & Ramadana, A. (2025). Peran Perencanaan dan Pengembangan Sumber Daya Manusia dalam Upaya Meningkatkan Employer Branding Pada PT Union Confectionery Medan. MUDABBIR Journal Research and Education Studies, 5(2), 1887–1894. https://doi.org/10.56832/mudabbir.v5i2.1425

Robbins, S. P., & Judge, A. T. A. (2019). Organizational Behavior. 18th Editi. New York City, NY. USA: Pearson.

Tanwar, K., & Prasad, A. (2016). Exploring the Relationship between Employer Branding and Employee Retention. Global Business Review, 17. https://doi.org/10.1177/0972150916631214

Tariana, I. W. A. (2024). Strategi Manajemen Talenta Untuk Retensi Karyawan Pada Perusahaan Multinasional Di Indonesia. Jurnal Ekonomi Utama, 3(3). https://doi.org/10.55903/juria.v3i3.259

Weng, Q., McElroy, J. C., Morrow, P. C., & Liu, R. (2010). The relationship between career growth and organizational commitment. Journal of Vocational Behavior, 77(3). https://doi.org/10.1016/j.jvb.2010.05.003

Yulianti, I. A. (2024). Upaya Employee Retention Melalui Employer Branding Dan Employee Engagement (Studi Kasus Pada Perbankan BUMN Di Kota Semarang) (Doctoral dissertation, Universitas Islam Sultan Agung Semarang).