Role of Work Stress as Mediating Variable between Compensation and Work-Life Balance on Employee Performance

Abstract

Good human resources are a determining factor for the company's success. Bank Perkreditan Rakyat (BPR) is financial institution which specialized in fund-lending facilities to communities. This study aims to analyze the role of work stress in mediating the effect of compensation and work-life balance on employee performance. This research was conducted at BPR Sandi Raya Utama, with 51 respondents. Data was collected by distributing questionnaire that measured by a Likert scale. The data analysis technique used in this research is Smart PLS. The results of this study indicate that compensation and work-life balance have a positive significant effect on employee performance but have a negative significant effect on work stress, while job stress has a negative significant effect on employee performance. Work stress partially mediates the relationship between compensation and work-life balance on employee performance.