169-Article Text-1659-1-10-20221020
169-Article Text-1659-1-10-20221020
169-Article Text-1659-1-10-20221020
Abstract
The COVID-19 pandemic has changed the pattern of human life, work, and significant changes
for companies to survive. The most obvious change is in the situation where organizational
activities begin to practice flexible working arrangements or flexible working arrangements. This
study aims to analyze the effect of flexible working arrangements on productivity, job
satisfaction, and turnover intention through a quantitative approach and the use of the Smart-
PLS 3.2.9 application with 100 millennial generation employees in Jakarta. This study shows
that flexible working arrangements significantly positively affect productivity and job
satisfaction. Furthermore, job satisfaction has a positive effect on productivity. However, an
anomaly was found in the effect of flexible working arrangements on turnover intention, which
has a significant positive relationship. This is due to the company's lack of freedom in
completing its work. Job satisfaction has no significant effect on turnover intention. In the
indirect effect test, it is known that job satisfaction can mediate the effect of flexible working
arrangements on productivity. Moreover, job satisfaction cannot mediate between flexible
working arrangements and turnover intention.
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864 International Journal of Social, Service and Research, 2(10), 863-880
many as 26% said that productivity increased flexible working hours provided by the
by telecommuting. As much as 5% said there company to employees does not provide good
was an increase in employee attendance. This benefits for the company.
happened before the COVID-19 pandemic Fadhila and Wicaksana (2020)
showed that telecommuting had become an suggested that FWA, if applied in several
option for employees. cases, can be said to be effective with
Flexible work arrangements positively responses from employees who feel happy
affected productivity because they were much because they can freely manage work
more motivated because there was no direct schedules. Several factors need special
attachment from their superiors (Pandiangan, attention, namely, (1) gender factor, namely
2018). Flexibility of working hours for female the workload of female and male employees,
workers has a positive value on productivity, which is still considered burdensome to
which means that if the company applies the women; (2) factors for providing
flexibility of working hours, the productivity infrastructure and technology; (3) leadership
will be even better (Antiqka & Pradhanawati, factors with their relationship as a means of
2017). Flexible work arrangements positively communication, coordination, and work
influence employee performance or patterns; (4) policy factors, where it is
productivity with high and dominating necessary to have applicable rules so that
categories (Gunawan & Franksiska, 2020). employees can achieve their performance;
However, different from Boltz et al. and (5) the factor of the type of work and
(2020), flexibility does not always increase position, where not all can apply FWA. On the
productivity. Part-time workers under a other hand, there are obstacles to the
flexible schedule are statistically less application of FWA. Barriers that arise include
productive than those with a regular full-time (1) availability of workspace, technology
schedule. Rimadias (2019) suggests that work infrastructure, and increased costs of using
flexibility does not affect perceived technology; (2) difficulty in determining the
productivity. Kattenbach et al. (2010) found level of performance and productivity because
that flexible work arrangements had a there are still constraints in terms of real-
negative effect on employee performance. time; (3) the emergence of a cultural shock
The application of Work From Home (WFH) to the use of technology, the responsibility to
faces challenges because apart from not all manage homework that can affect the stress
types of work can be done from home but level of employees, as well as the presence of
also faced with obstacles such as work tools, interference from family members and can
coordination, disturbances from within the reduce concentration (4) the negative effect
home such as housework taking care of of FWA on the mental psychology of
children, problems network and so on employees.
(Waizenegger et al., 2020). Working in a According to Wibisono (2017), the
shared space with other householders causes millennial generation is commonly referred to
distraction and difficulty focusing on work as generation Y, where this generation was
tasks. These challenges pose a problem for born between 1980-2000 or aged between 19
some communities in dealing with these years to 39 years (Wibisono, 2017).
trends. It is also supported by the results of Hidayahtullah in Meilinda, (2019) mentions
the Effect of Salary, Flexible Working Hours, the characteristics of the millennial
and Work Stress on Employee Performance at generation, namely: 1) millennials trust user-
Companies in Batam City. Flexible working generated content (UGC) more than
hours significantly negatively affected unidirectional information, 2) they prefer
employee performance (Fanda & Slamet, smartphones over television, 3) they have
2019). This means that the implementation of social media, 4) they do not like reading
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International Journal of Social, Service and Research, 2(10), 863-880 869
Table 8
Loading Factor Value
Variable Dimension Code Item Outer Loading Terms Description
Value
Time T1 0.866 > 0.7 Valid
Flexibility (T) T2 0.815 > 0.7 Valid
T3 0.849 > 0.7 Valid
Timing TF1 0.812 > 0.7 Valid
Flexible
Flexibility TF2 0.806 > 0.7 Valid
Working
(TF) TF3 0.716 > 0.7 Valid
Arrangement
PF1 0.901 > 0.7 Valid
Place PF2 0.905 > 0.7 Valid
Flexibility
(PF)
Job Salary GJ1 0.919 > 0.7 Valid
Satisfaction GJ2 0.930 > 0.7 Valid
Promotion KP1 0.866 > 0.7 Valid
opportunity KP2 0.844 > 0.7 Valid
Table 9
AVE Value Research Model
Variable Dimension AVE AVE Value
Value
Flexible Working Time Flexibility (T) 0.712 0.507
Arrangement (X) Timing Flexibility (TF) 0.607
Place Flexibility (PF) 0.815
Turnover Intention Thinking of Quitting (TIQ) 0.746 0.555
(Y1) Intention to Quit (IQ) 0.814
Intention to Search 0.568
Alternatives (IS)
Job Satisfaction (Y2) Salary (GJ) 0.854 0.575
Leadership (KM) 0.681
Colleagues (RK) 0.844
Promotion Opportunity 0.725
(KP)
Productivity (Y3) Quality (KL) 0.788 0.783
Quantity (KN) 0.883
Source: Results of analysis using Smart-Pls 3.3.9
Table 10
Value of Composite Reliability and Cronbach's Alpha
Variable Composite Terms Cronbach's Terms Description
Reliability Alpha
Flexible Working 0.891 > 0.7 0.859 > 0.6 Reliable
Arrangement
Turnover Intention 0.896 > 0.7 0.864 > 0.6 Reliable
Job Satisfaction 0.956 > 0.7 0.9950 > 0.6 Reliable
Table 13
Path Coefficient, t-statistics, and P-values
Relationship Original T Statistic P Description
between construct Sample (O) Values
Direct Influence
Flexible Working
Significantly
Arrangement > 0.584 6.609 0.000
positive influence
Productivity
Flexible Working
Significantly
Arrangement > 0.435 4.223 0.000
positive influence
Job Satisfaction
Flexible Working
Arrangement > Significantly
0.255 2.217 0.027
Turnover positive influence
Intention
Job Satisfaction >
No significant
Turnover 0.174 1.614 0.107
positive influence
Intention
Job Satisfaction >
Significantly
Productivity 0.236 2.745 0.006
positive influence
Indirect Influence
Flexible Working
Arrangement > Significantly
0.103 2.386 0.017
Job Satisfaction > positive influence
Productivity
that can be obtained from several their needs at work cannot be fulfilled. There
companies dynamically continues to is no help needed in completing their work.
change so that can accelerate their This is supported by Schaefer's research
personal and career growth rapidly, where (2017) in (Putro et al., 2020) which reveals
they are always looking for opportunities that millennial generation employees carry
to excel and are very concerned about out turnover intention because they feel that
professional development. their needs at work cannot be fulfilled,
6. Effect of Flexible Working Arrangement on compensation that is not in line with
Productivity through Job Satisfaction expectations, and bad environment, and the
Hypothesis 6 in this study states absence of assistance.
that flexible working arrangements
significantly positively affect productivity CONCLUSION
through job satisfaction, and this A flexible working arrangement (FWA)
hypothesis is accepted. This study proves positively affects the employee productivity of
that FWA can partially mediate job millennials in Jakarta. The factor without
satisfaction to productivity. The direct orders from superiors is the most
acceptance of the hypothesis is in line with dominant in productivity. Employees feel free
the journal (Nugroho & Hasanah, 2022). because they can express their current job.
The results of the analysis and discussion Thus, it can bring up ideas, innovations, and
in the journal result that job satisfaction ideas that can increase productivity.
has a positive and significant impact on A flexible working arrangement (FWA)
employee work productivity when working significantly positively affects job satisfaction.
from home. Job satisfaction felt by The most important factor of this influence is
employees can increase their work where the freedom factor in responding to
productivity. The more satisfied employees job satisfaction is the most decisive: working
are, the more productive employees will flexibly can have an effect. Freedom without
be. Furthermore, in this study, the direct orders from superiors is the most
freedom felt by employees when working dominant factor. Employees feel satisfaction
anywhere makes them more satisfied at because there is no strict supervision by their
work and increases employee productivity. superiors.
7. Effect of Flexible Working Arrangement on A flexible working arrangement
Turnover Intention through Job positively influences the turnover intention of
Satisfaction the millennial generation in Jakarta. FWA
Hypothesis 7 states that flexible does not specify employees, reducing them
working arrangement has a positive effect not to leave their current job. The most
on turnover intention through job decisive factor is the freedom to choose the
satisfaction, and this hypothesis is place of work. However, employees are given
rejected. This hypothesis is rejected the freedom to work. However, employees
because there is no evidence of the are already thinking of looking for another job
significance of job satisfaction in mediating despite the office's policy of giving them the
the effect of flexible working freedom to work flexibly.
arrangements on turnover intention. This Job satisfaction has a positive effect on
is possible because the data collected productivity. If there is an increase in job
cannot explain the mediating role of job satisfaction, there will be an increase in work
satisfaction. productivity. It seems that job satisfaction
This is possible because the can have a positive effect on productivity.
respondents chosen by the researchers are Employee happiness will result in productivity,
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