Working-from-Home and Job Satisfaction: The Mediating Role of Employee Engagement and Well-Being among Banking Sector Employees in Sri Lanka

Abstract

The purpose of this research is to examine the impact of Work-from-Home on Job Satisfaction, with a specific focus on the mediating roles of Employee Engagement and Employee Well-Being, with special reference to banking sector employees in Sri Lanka. Three hypotheses and a conceptual framework were developed based on a comprehensive literature survey. A quantitative research approach was adopted with a Cross-sectional correlational survey design. A standard questionnaire was used to collect data from a sample of 391 banking-sector employees in Sri Lanka. The sample was selected using a stratified sampling technique. Both descriptive and inferential statistics were utilized to analyze the data. Reliability and validity were assessed using Cronbach’s Alpha, the Kaiser-Meyer-Olkin test, and Bartlett’s test of sphericity. The hypotheses were tested using simple regression analysis and Baron and Kenny’s mediator analysis method. The results indicate a strong positive relationship between Work-from-Home and Job Satisfaction. It was found that Employee Engagement mediates the relationship between Work-from-Home and Job Satisfaction. Contrary to expectations, the mediating effect of Employee Well-Being was not supported, likely due to the complex interplay among factors such as boundary management, social support, and individual preferences. This study contributes to the knowledge of remote work and organizational behaviour by highlighting the positive impact of flexible work arrangements on the Job Satisfaction of banking sector employees and the mediating role of employee engagement. The study offers valuable insights and practical implications for Sri Lanka’s banking sector organizations to navigate remote work arrangements and support their employees effectively.