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Within the context of PT Bhumi Varta Technology, where employee turnover increased by 9.5 percentage points during 2025, this study examines the effects of work-life balance and work flexibility on employee loyalty, considering both direct and indirect pathways via work engagement. The trend is hypothesized to be associated with the adoption of a hybrid work model, which may intensify work-life integration issues, increase stress, and contribute to employee burnout. A quantitative approach was used, employing survey-based data collection. The population consisted of 150 employees, and a purposive sampling method selected 110 respondents who had worked for at least one year. Data were measured using a 1–5 Likert scale. Analysis was conducted using PLS-SEM with SmartPLS 4. Results show that work-life balance has a significant positive effect on work engagement (H1 accepted) and employee loyalty (H4 accepted). Work flexibility significantly improves work engagement (H2 accepted), but no significant direct effect on employee loyalty was found (H5 rejected). Work engagement is the strongest predictor of loyalty (H3 accepted) and significantly mediates the effects of both work-life balance (H6 accepted) and work flexibility (H7 accepted), including full mediation for the latter. The model shows moderate predictive power (R-square = 0.636).
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Edo Pratama Putra (2026) studied this question.
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