Examining the Effect of Work-Life Balance and Work Engagement on Employee Performance: A Study at Bank Syariah Palu, Indonesia

Abstract

The merger that formed Bank Syariah Indonesia (BSI) has brought new challenges in human resource management, where employee performance is a key factor for success in the Islamic financial sector. This study develops a conceptual framework on the influence of Work-Life Balance (WLB) and Work Engagement (WE) on employee performance, with an empirical focus on BSI Palu. The literature indicates that WLB helps employees balance work and personal life, positively affecting productivity, whereas WE reflects emotional attachment, dedication, and energy that enhance service quality and performance. The proposed model positions WLB and WE as determinants of employee performance, contributing to the literature by extending the Job Demands–Resources Model to Islamic banking. Practically, this suggests that BSI should implement HR policies that strengthen WLB and WE to improve competitiveness and sustainability. This conceptual framework can serve as a foundation for future studies.