The Effect of Work from Home on Employee Productivity in The Banking Industry

Abstract

Recent pandemic has pushed employee of banking industry in Indonesia, especially Greater Jakarta Area, to adapt to WFH arrangement. This sudden adoption of WFH has influenced employee productivity in number of ways. Furthermore, multiple news reported narrative such as mental health deterioration among employee in banking industry and productivity boost experienced by banking company adopting WFH. Therefore, this study aimed to investigate the intervening effect of WLB, job satisfaction, and mental health between WFH arrangement and productivity of employee in the banking industry located in Greater Jakarta Area. To test the hypothesis which WLB, job satisfaction, and mental health among employee can increase productivity on WFH arrangement, survey was conducted through online questionnaire with 314 respondents of banking employee located across Greater Jakarta Area. Our investigation has shown positive impact of job satisfaction and mental health on productivity of banking employee adopting WFH arrangement. However, the investigation also highlights the negative correlation between WFH arrangement and WLB. These results suggest that in order to increase employee productivity in current WFH arrangement, practitioners need to pay attention in nurturing employee job satisfaction while introducing mental health awareness in work environment as well. Also, further research can address the question as to what specific factors of current WFH arrangement which may decrease employee WLB.