The Relationship of Job Satisfaction, Flexible Working Arrangements and Employee Performance using SEM-PLS and FIMIX-PLS: A Case Study of Employees in Insurance Company

Abstract

Background: Working from home has occurred since the government regulation in which large-scale social restrictions (PSBB) came into effect in Jakarta. An economic slowdown affects employee performance, especially in service companies that prioritize work systems using a promotion, sales, and marketing. The background in this study aims to identify the influence between the variables used, namely job satisfaction (JS), flexible work arrangements (FWA), and employee performance (EP) at insurance companies in Jakarta. 

Methods: The data collected in this study was conduct online using a Likert-scale questionnaire as the primary data, the population calculation using the Slovin formula. Then will be tested using Validity and reliability tests as a condition to obtain valid and reliable data. The data analysis carried out in this study uses SEM (Structural Equation Modeling) modeling through the PLS (Partial Least Square) approach in the Smart PLS 3.3.2 program, which will then continue to group using FIMIX-PLS.

Result: The research results on H2 and H3 accepted that the hypothesis means that job satisfaction significantly influences flexible working hours and individual performance for each employee. While HI and H4 rejected the premise, flexible working hours arrangement does not directly affect performance. After knowing the results of the hypothesis, then the grouping analysis using FIMIX-PLS shows that k = 5 is the best segment with the most significant EN value.

Conclusions: Flexible working hours arrangements at insurance companies have not had a significant effect. On the contrary, employees feel job satisfaction has an essential role in their performance. The results of FIMIX-PLS support grouping the data into five clusters, and the largest is in the first group.