50 American Journal of Economic and Management Business e-ISSN: 2835-5199 Vol. 4 No. 1 January 2025 The Influence of Work from Home and Work Life Balance on Job Performance (A Case Study at PT Rata Indonesia) Natalia Christy1*, Dian Indiyati2 Universitas Telkom, Indonesia Emails: nataliaachristy@student.telkomuniveristy.ac.id, dianindiyati@telkomuniveristy.ac.id Abstract Human resources play a crucial role in an organization or company. This is because human resources contribute to the organization's ability to achieve its desired goals. In this context, human resources refer to employees. A factor that can enhance the growth of an organization or company is by evaluating employee performance. Organizations or companies must pay attention to work methods and work-life balance in relation to their operations. Changes in employee work methods can improve job performance and lead to satisfying results. Work-life balance also needs to be managed by employees, as it can impact their job performance. The aim of this study is to assess the levels of work from home, work-life balance, and job performance among employees at PT Rata Indonesia. The research method used is quantitative, with data presented through descriptive analysis techniques. Data collection was conducted using a questionnaire. This study employed a Likert scale with a total of 30 statements. The population of this study consists of 129 employees, and the sample was selected using non-probability sampling with a saturated sampling technique, where the sample includes the entire population. Enter the descriptive results of the influence of work from home and work life balance has a positive and significant effect on the job performance of PT Rata Indonesia employees. Meanwhile, work from home is in the good category and work life balance is in the good category and job performance is in the moderate category. Keywords: Work From home, Work Life Balance, Job Performance INTRODUCTION In the era of technological advancement and following the COVID-19 pandemic, companies face new challenges in maintaining competitiveness in an increasingly dynamic business environment (Mahdi & Nassar, 2021). These challenges necessitate optimal human resource management to ensure companies can adapt and thrive. As Indonesia's first digital start-up company in the health and aesthetics sector, PT Rata Indonesia has been operating for six years, specializing in research, development, and production of clear aligners aimed at providing painless teeth straightening. Currently, Rata's products are well-known among Indonesians due to their innovative claims and benefits. The shift to digital operations and the rise of hybrid work models brought about by the pandemic have added layers of complexity to managing employee performance (Hopkins & Bardoel, 2023). Performance is the achievement of tasks and responsibilities by employees, which requires full engagement and efficiency to meet company goals. One of the tools commonly used Natalia Christy, Dian Indiyati 51 to measure performance is the Key Performance Indicator (KPI), which Marr (2015) defines as a metric that helps organizations assess performance levels effectively. At PT Rata Indonesia, which is headquartered in Jakarta with clinics in major cities across the country, the KPI standard for employees includes resolving a minimum of 180 tickets and a maximum of 200 within a response time of 15 minutes per ticket. Despite these benchmarks, recent data indicate a decline in employee performance (De Vos et al., 2024). This decline underscores the urgent need to explore and address factors impacting performance, especially as the company increasingly leverages digital tools to manage its workforce, including attendance and leave systems (Even & Christiansen, 2023). The importance of this research lies in its ability to provide actionable insights into managing employee performance in the digital and post-pandemic era (Palmucci et al., 2025). Research by highlights how remote work can influence employee performance, particularly when employees struggle to balance work and personal life. Emphasize that difficulties in maintaining work-life balance can lead to diminished work performance (De Vos et al., 2024). At PT Rata Indonesia, challenges such as employees forgetting to log attendance or submit leave applications have compounded performance issues, further reflected in declining KPI indices over the past three years. Specifically, the tardiness index decreased by 2.4% between 2021 and 2022 and by 2.7% between 2022 and 2023. These findings underscore that performance issues, work-from-home arrangements, and work-life balance challenges are not unique to PT Rata Indonesia but are reflective of broader trends impacting organizations in various industries. Understanding these factors is critical for developing strategies to improve employee performance in the digital and post-pandemic era (Saura et al., 2022). For PT Rata Indonesia, these challenges present an opportunity to explore the interplay between remote work, work-life balance, and job performance, particularly given the organization's focus on digital solutions and rapid business expansion. Based on these phenomena, this research aims to examine the influence of work-from-home practices and work-life balance on employee performance at PT Rata Indonesia (Christy & Indiyati, 2024). By addressing these critical issues, this study seeks to contribute valuable insights into managing employee performance effectively in the context of digital transformation and post- pandemic challenges. This research is conducted under the title, "The Influence of Work-from- Home and Work-Life Balance on Job Performance at PT Rata Indonesia." RESEARCH METHOD This research employs a quantitative approach with a descriptive method. The study was conducted at PT Rata Indonesia, a digital startup specializing in health and aesthetics, which has been operating for six years. The research spanned three months, from October to December 2024. It focused on examining the relationships among key variables: work from home (WFH), work- life balance (WLB), and job performance (JP). The research population consisted of all 129 employees of PT Rata Indonesia, with a saturated sampling technique employed, meaning the entire population was used as the research sample. American Journal of Economic and Management Business Vol. 4 No. 1 Januari 2025 52 Data collection was conducted using a questionnaire consisting of 30 statements rated on a Likert scale of 1-5 (from strongly disagree to strongly agree). The research variables were defined as WFH (X1), WLB (X2), and JP (Y). Data analysis was performed using Structural Equation Modeling (SEM) through the SmartPLS software. The validity and reliability of the instrument were assessed using convergent factor analysis, with factor loadings > 0.70 and an AVE > 0.50. Additionally, Cronbach's alpha and composite reliability values met the reliability criteria, both being ≥ 0.70. To enhance the clarity and transparency of the methods, the study could include a more detailed explanation of the operational definitions of the variables, the data collection procedures, and the assumptions considered in the SEM analysis. These refinements would provide a stronger methodological foundation and further support the research findings (Collins et al., 2016). RESULT AND DISCUSSION The object of this research is all employees of PT Rata Indonesia with a total of 129 employees. Sampling using non probability sampling technique with saturated sampling technique. The sample that can be selected as respondents in this study are 129 employees of PT Rata Indonesia. Furthermore, each of these variables is measured by a number of indicators through a survey. Data is collected through surveys distributed to employees. Each question provided 5 answer options where score 1 for strongly disagree and score 5 for strongly agree (Carrizosa et al., 2016). Then 129 valid answers were taken to be sampled. The causal relationships between the variables that make up the structural equation were solved using SEM. The data were processed by SmartPLS. The following table summarizes the validity and reliability tests with Validity and Reliability Test Results Table 1. Validity and Reliability Test Results Variables Indicator Load Factors Average Variance Extracted (AVE) Test Cronbach's Alpha Test Composite Reliability Test Work From Home (XI) X1.1 0,724 0,665 (Valid) 0,955 (Accepted) 0,960 (Reliable) X1.2 0,733 X1.3 0,788 X1.4 0,782 X1.5 0,791 X1.6 0,804 X1.7 0,896 X1.8 0,900 X1.9 0,845 X1.10 0,864 X1.11 0,853 X1.12 0,786 Work Life Balance (X2) X2.1 0,840 0,746 (Valid) 0,932 (Accepted) 0,946 (Reliable) X2.2 0,882 X2.3 0,832 X2.4 0,896 Natalia Christy, Dian Indiyati 53 Variables Indicator Load Factors Average Variance Extracted (AVE) Test Cronbach's Alpha Test Composite Reliability Test X2.5 0,904 X2.6 0,824 Job Performance (Y) Y1.1 0,916 0,737 (Valid) 0,967 (Accepted) 0,971 (Reliable) Y1.2 0,909 Y1.3 0,913 Y1.4 0,894 Y1.5 0,853 Y1.6 0,875 Y1.7 0,920 Y1.8 0,904 Y1.9 0,867 Y1.10 0,768 Y1.11 0,720 Y1.12 0,733 Source: Processed Researcher Data, 2024 All indicators loading factor> 0.70 and AVE value greater than> 0.5 so that all indicators are said to be valid or have convergent validity. The variables in this research also have values ≥ 0.7, which means they have met the criteria Cronbach's alpha and composite reliability. Hypothesis Test Results Table 2. Hypothesis Test Results Hypotheses Original Sample (O) Sample Mean (M) (STDEV) T-Statistics P Values X1→ Y 0,463 0,466 0,059 7,815 0,000 X2→ Y 0,160 0,169 0,079 2,026 0,043 Source: Processed Researcher Data, 2024 R-Square Table 3. R-Square value Variables R Adjusted R-Square Job Performance (Y) 0.283 0,272 Source: Processed Researcher Data (2024) The R Square value for the Job Performance (Y) construct is 0.283, while the Adjusted R Square value is 0.272. The R Square value of 0.283 indicates that 28.3% of the variance in the Job Performance (Y) construct can be explained by the exogenous variables in the model. Q-Square Table 4. Q-Square values Variables SSO SSE Q2 Work From Home (X1) 1548,000 1548,000 Work Life Balance (X2) 774,000 774,000 Job Performance (Y) 1548,000.1233,978 0,203 Source: Processed Researcher Data (2024) American Journal of Economic and Management Business Vol. 4 No. 1 Januari 2025 54 Indicating that the model was able to explain about 20.3% of the variability in the endogenous variable Y better than using only the average prediction. Research Urgency Significant changes in work patterns due to the COVID-19 pandemic have prompted many companies, including PT Rata Indonesia, to implement WFH (Utami et al., 2020). However, the implementation of WFH is accompanied by challenges such as internet connectivity, adequate work tools, and time management. In addition, the balance between work and personal life is an additional challenge for employees in maintaining productivity (Wiradendi Wolor, 2020). Causes of the Problem From the data processed, it was found that employee job performance decreased by 2.4% in 2021-2022 and 2.7% in 2022-2023. The main factors influencing this decline are: 1) Dependence on technology: Internet connection interruptions and lack of work devices. 2) Work stress: Home environment that is not conducive to work. 3) Time management: Difficulty dividing time between work and personal matters. Solutions and Implications The analysis results show that: WFH (X1) has a significant influence on JP with a T-statistic value of 7.815 (p < 0.000). This indicates that WFH flexibility can increase employee efficiency if supported by adequate work tools. WLB (X2) has a positive effect on JP with a T-statistic value of 2.026 (p < 0.043). The implementation of programs that support work-life balance, such as flexible working hours and family-friendly leave, can increase employee satisfaction. Overall, the research model has an R-Square value of 0.283, which indicates that 28.3% of JP variation can be explained by the WFH and WLB variables. In addition, the Q2 value of 0.203 indicates that the research model has a fairly good predictive ability. Comparison with Previous Research This study is consistent with the findings of Bloom et al. (2021) that WFH can increase productivity if managed properly. Previously, research by Kelliher et al. (2019) also showed that work-life balance has a positive impact on productivity and job satisfaction. However, this study adds a new dimension by looking at the impact of WLB on startups in the healthcare sector. Thus, the results of this study contribute to the development of human resource management strategies, especially in Indonesia. Impact and Recommendations The positive impacts of effective WFH and WLB implementation include: 1) Improved employee well-being: Reduced stress levels, increased motivation, and better health. 2) Improved company productivity: More consistent and high quality work output. Recommendations for PT Rata Indonesia are: 1) Strengthen the digital infrastructure to support WFH. 2) Provide time management training for employees. 3) Implement a consistent work-life balance program. Natalia Christy, Dian Indiyati 55 CONCLUSION Empirical findings suggest that factors such as technology, working time, and work-life balance significantly influence the effectiveness of WFH. Therefore, companies must provide sufficient technological support, optimize resource allocation, and manage working hours effectively to ensure productivity. By taking a strategic role in setting clear objectives, delivering adequate training, evaluating performance regularly, and fostering effective communication, companies can enhance overall employee performance. Furthermore, promoting a healthy work- life balance has been shown to improve employee well-being, alleviate stress, and boost job satisfaction and performance. Consequently, it is crucial for companies to implement policies and provide resources that empower employees to achieve work-life balance, ultimately driving greater productivity and sustainable employee well-being in the long term. BIBLIOGRAPHY Carrizosa, E., Nogales-Gómez, A., & Romero Morales, D. (2016). Strongly agree or strongly disagree?: Rating features in Support Vector Machines. Information Sciences, 329, 256–273. https://doi.org/10.1016/j.ins.2015.09.031 Christy, N., & Indiyati, D. (2024). The Influence of Work From Home and Work-Life Balance on Job Performance in Employees (Case Study at PT Rata Indonesia). 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