The Role of Job Satisfaction in Mediating the Effects of Digital Competence and Work-Life Balance on Employee Performance

Abstract

This study aims to examine and analyze the role of job satisfaction in mediating the effects of digital competence and work-life balance on employee performance at the Human Resources Bureau of the North Sumatra Regional Police. The study employed a quantitative approach with a population of 115 employees. The sampling technique used was saturation sampling, whereby the entire population was included as the study sample. Primary data were collected through the distribution of questionnaires using a Likert scale. Data analysis was conducted using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method with the SmartPLS 3.0 software. The results indicate that digital competence has a positive and significant effect on employee performance and job satisfaction. Work-life balance also has a positive and significant effect on employee performance and job satisfaction. Furthermore, job satisfaction has a positive and significant effect on employee performance. The results of the indirect effect test indicate that job satisfaction positively and significantly mediates the effects of digital competence and work-life balance on employee performance. The R-squared value for job satisfaction of 0.360 indicates that digital competence and work-life balance explain 36% of job satisfaction, while the remainder is influenced by other variables outside the research model. The R-squared value for employee performance of 0.453 indicates that digital competence, work-life balance, and job satisfaction explain 45.3% of employee performance. The research findings confirm that improving digital competence and work-life balance can enhance employee performance, both directly and through increased job satisfaction.