Work–Life Balance, Mental Health, and Employee Performance: The Mediating Role of Job Satisfaction among Generation Z Employees

Abstract

This study examines the effects of Work–Life Balance (WLB) and Mental Health on Employee Performance among Generation Z employees in Yogyakarta’s tourism sector, with Job Satisfaction serving as a mediating variable. The study was motivated by the increasing importance of employee well-being in the tourism industry, which is characterized by demanding work conditions and fluctuating schedules. Using a quantitative explanatory approach, data were collected from 200 Generation Z employees through a questionnaire survey and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The findings indicate that Work–Life Balance and Mental Health positively and significantly influence Job Satisfaction. Mental Health and Job Satisfaction also have significant positive effects on Employee Performance, whereas Work–Life Balance does not directly affect Employee Performance. Furthermore, Job Satisfaction fully mediates the relationship between Work–Life Balance and Employee Performance and partially mediates the relationship between Mental Health and Employee Performance. These findings highlight the critical role of Job Satisfaction in translating employee well-being into performance outcomes and demonstrate the dominant contribution of Mental Health in enhancing both Job Satisfaction and Employee Performance. The study contributes to the employee well-being literature by providing empirical evidence on the distinct mechanisms through which Work–Life Balance and Mental Health influence performance among Generation Z employees in the tourism sector.