Optimizing the Effectiveness of Remote Work: Analysis of the Role of Flexible Work Arrangements, Organizational Commitment, and Employee Retention in BUMD Companies

M Yusuf Alfian Rendra Anggoro KR

doi:10.55927/ijbae.v4i5.408

Authors

M Yusuf Alfian Rendra Anggoro KR University of Muhammadiyah Makasar

DOI:

https://doi.org/10.55927/ijbae.v4i5.408

Keywords:

Flexible Work Arrangements, Organizational Commitment, Employee Retention, Remote Work Effectiveness, BUMD

Abstract

This study analyzes the impact of Flexible Work Arrangements (FWA) and Organizational Commitment on Remote Work Effectiveness with Employee Retention as a mediating variable in Regional-Owned Enterprises (BUMD) in South Sulawesi. Using a quantitative explanatory survey of 150 employees and path analysis, the results show that FWA and Organizational Commitment positively and significantly influence Employee Retention and Remote Work Effectiveness, with retention mediating both relationships. The model explains 65% of the variance in remote work effectiveness, highlighting the importance of flexibility, commitment, and retention in sustaining productivity. These findings imply that organizations should strengthen flexible work policies, foster employee commitment, and enhance retention strategies to optimize performance in the post-pandemic era.

References

Bakker, A. B., & Demerouti, E. (2007). The Job Demands-Resources model: State of the art. Journal of Managerial Psychology, 22(3), 309–328. https://doi.org/10.1108/02683940710733115

Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173

Bentley, T., Teo, S., McLeod, L., Tan, F., Bosua, R., & Gloet, M. (2023). The role of Flexible Work Arrangements in managing work-life balance: Evidence from Southeast Asia. Asian Business & Management Journal, 22(1), 87–102. https://doi.org/10.1177/14705958221099850

Blau, P. M. (1964). Exchange and Power in Social Life. Wiley.

Clark, S. C. (2000). Work/family border theory: A new theory of work/family balance. Human Relations, 53(6), 747–770. https://doi.org/10.1177/0018726700536001

Daft, R. L., & Lengel, R. H. (1986). Organizational information requirements, media richness and structural design. Management Science, 32(5), 554–571. https://doi.org/10.1287/mnsc.32.5.554

Deci, E. L., & Ryan, R. M. (1985). Intrinsic Motivation and Self-Determination in Human Behavior. Springer.

Halim, A., Rahmat, H., & Siregar, M. (2023). Flexible Work Arrangements and Employee Retention: A study of Indonesian public organizations. International Journal of Human Resource Management, 34(2), 312–329. https://doi.org/10.1080/09585192.2022.2150001

Masuda, A. D., Holtschlag, C., & Nicklin, J. M. (2022). The impact of Flexible Work Arrangements on employee engagement: A cross-cultural study. Human Resource Management Review, 32(1), 100-126. https://doi.org/10.1016/j.hrmr.2021.100930

Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1(1), 61–89. https://doi.org/10.1016/1053-4822(91)90011-Z

Meyer, J. P., & Allen, N. J. (2023). Retrospective and prospective views on the study of organizational commitment. Annual Review of Organizational Psychology and Organizational Behavior, 10(1), 43–66. https://doi.org/10.1146/annurev-orgpsych-032422-034359

Siregar, D., Halim, H., & Wahyuni, R. (2023). Organizational Commitment and Employee Retention in the Indonesian context: Exploring the mediating role of work engagement. Asian Journal of Business and Management Studies, 15(3), 45–58. https://doi.org/10.25077/ajbms.v15i3.2023

Wang, Y., Liu, X., & Zhang, Z. (2023). Retention strategies for remote employees: Lessons from multinational organizations. Journal of Business Research, 156, 212–228. https://doi.org/10.1016/j.jbusres.2023.04.022

PricewaterhouseCoopers (PwC). (2023). Majority of Indonesian workers no longer WFH by 2023. Retrieved from https://www.pwc.com

Logitech. (2023). Survey: 62% of Indonesian employees prefer hybrid work. Retrieved from https://selular.id