The findings are particularly relevant as organizations worldwide continue to adopt hybrid and flexible work models following the COVID-19 pandemic. While many companies have embraced remote and hybrid work to improve efficiency and employee satisfaction, questions remain about how these arrangements influence productivity and long-term organizational performance.
The researchers examined employees at PT Kareb Alam Sejahtera, an Indonesian company that has implemented flexible work practices. Despite introducing workplace flexibility, the company experienced several performance-related challenges that prompted further investigation.
Internal company data revealed declining organizational performance during 2024 and 2025. Key Performance Indicator (KPI) achievement dropped by approximately 12 percent, falling from 82 percent to 70 percent during the fourth quarter of 2025. Employee absenteeism also increased to 8.4 percent, while late system logins under the flexible work system reached 14.5 percent. Employee turnover rose to 4.5 percent, accompanied by increasing reports of burnout and work-related fatigue. These trends suggested that workplace flexibility alone was insufficient to guarantee higher productivity.
According to the research team from Universitas 17 Agustus 1945 Surabaya, many employees struggled to separate professional responsibilities from personal life. At the same time, insufficient self-direction and declining emotional attachment to work appeared to contribute to lower performance levels.
To understand these issues, the researchers surveyed 83 non-production employees working at PT Kareb Alam Sejahtera's headquarters. Participants represented managerial, administrative, finance, and human resource divisions. Data were collected through structured questionnaires and analyzed statistically to determine how flexible working arrangements, self-leadership, work-life balance, and work engagement influence employee performance.
The results demonstrated that all three major factors—Flexible Working Arrangement (FWA), Self-Leadership, and Work-Life Balance (WLB)—positively and significantly affected both employee engagement and employee performance.
Several important findings emerged from the study:
- Flexible working arrangements strengthened employee engagement. Employees who had autonomy over work schedules and locations reported higher levels of energy, enthusiasm, and dedication.
- Self-leadership emerged as a critical performance driver. Employees capable of setting personal goals, motivating themselves, and maintaining discipline performed better even with minimal supervision.
- Work-life balance significantly enhanced both engagement and performance. Employees who successfully balanced personal and professional responsibilities experienced less burnout and maintained stronger focus at work.
- Work engagement directly improved employee performance. Employees who felt emotionally and mentally connected to their jobs consistently delivered higher-quality outcomes.
- The research model explained approximately 71.9 percent of employee performance variation, indicating that these workplace factors play a substantial role in determining organizational success.
Rosita Dewi and her colleagues from Universitas 17 Agustus 1945 Surabaya emphasized that organizations should not view flexible work merely as an administrative policy. Instead, companies should complement flexibility with initiatives that strengthen employees' capacity for self-management and encourage healthy personal boundaries.
In their conclusion, the authors stated that "Flexible Working Arrangements, Self-Leadership, and Work-Life Balance serve as vital pillars in enhancing both Work Engagement and Employee Performance." They further noted that organizations should cultivate workplace cultures that support employee well-being, resilience, and mental health to sustain productivity over time.
The study has broad implications for businesses implementing hybrid work systems. Organizations are encouraged to formalize flexible work policies, provide self-leadership training, and establish clear expectations regarding work hours and availability. Such measures could help reduce burnout while maintaining high productivity.
As hybrid work becomes increasingly common across industries, the research underscores an important message: organizational success depends not only on flexible policies or digital technologies, but also on employees' ability to lead themselves and maintain a healthy balance between work and personal life.
Author Profiles
Rosita Dewi, S.E., M.M. is an academic and researcher specializing in human resource management, organizational behavior, and employee performance.
Hery Iswanto, S.E., M.M. is a lecturer and researcher whose expertise includes organizational management, leadership, and human resource development.
Prof. Dr. Sri Mujanah, S.E., M.M. is a senior academic at the Faculty of Economics and Business, Universitas 17 Agustus 1945 Surabaya. Her research focuses on human resource management, organizational behavior, and business strategy.
Dr. I Made Suparta, S.E., M.M. is a researcher and academic at Universitas 17 Agustus 1945 Surabaya specializing in strategic management, organizational development, and human resource management.
Source
Article Title: The Influence of Flexible Working Arrangement, Self-Leadership, and Work-Life Balance on Employee Performance Through Work Engagement as an Intervening Variable at PT Kareb Alam Sejahtera
Journal: Formosa Journal of Business and Economic Statistics (FJBES)
Year: 2026
Authors: Rosita Dewi, Hery Iswanto, Sri Mujanah, and I Made Suparta
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