This study is grounded in four complementary theoretical frameworks that collectively explain the relationships among life–work skills, organisational support, employee engagement and employee loyalty.

Social Exchange Theory posits that social relationships are based on reciprocal exchanges, in which individuals engage in cost-benefit analyses to determine the value of maintaining them (Meira & Hancer, 2021; Wei et al., 2022). In organisational contexts, when employees perceive that their organisation supports them and values their contributions, they feel obligated to reciprocate by increasing their commitment, engagement and loyalty (Meira & Hancer, 2021). Social Exchange Theory provides a foundational explanation for why organisational support leads to enhanced employee loyalty, mediated by engagement.

Self-Determination Theory emphasises the importance of intrinsic motivation and the satisfaction of three basic psychological needs: autonomy, competence and relatedness (Camilleri, 2021). When organisations provide support and employees possess practical life–work skills, these needs are more likely to be satisfied, leading to higher levels of engagement and loyalty (Camilleri, 2021). Self-Determination Theory helps explain why personal skills and organisational resources contribute to engagement by fulfilling fundamental psychological needs.

Conservation of Resources Theory suggests that individuals strive to acquire, maintain and protect valued resources, and that resource loss is more salient than resource gain (Charoensukmongkol, 2023; Obeng et al., 2025). Life–work skills and organisational support are essential personal and organisational resources that help employees manage demands and prevent resource depletion (Choirisa, 2023; Obeng et al., 2025). According to COR Theory, employees with greater resources are better positioned to invest in their work through engagement, which in turn protects against burnout and enhances loyalty.

The JD-R Model proposes that job characteristics can be categorised into demands (aspects that require sustained effort) and resources (aspects that facilitate goal achievement and reduce demands) (Scholze & Hecker, 2024; Wibawa et al., 2021). Job resources, including organisational support and personal skills, foster engagement through both motivational and health-protection processes (Priyono et al., 2022; Wibawa et al., 2021). The JD-R model provides a comprehensive framework for understanding how resources lead to engagement and, subsequently, to positive ooutcomes such as loyalty.

Life–work effectiveness skills encompass a range of competencies that enable employees to manage their work responsibilities efficiently, including time management, stress management, priority setting and goal-oriented behaviour (Kalra et al., 2020; Yener et al., 2021). These skills are conceptualised as personal resources that help employees navigate complex work environments and meet job demands effectively.

Time management skills enable employees to allocate their time efficiently, prioritise tasks and meet deadlines, thereby reducing stress and enhancing productivity (Yener et al., 2021). Research has shown that effective time management can mitigate the negative effects of work stressors on employee well-being and performance (Kalra et al., 2020). Stress management skills, including coping strategies and emotional regulation, help employees maintain psychological well-being amid work pressures (Choirisa, 2023).

According to the JD-R model, personal resources such as life–work effectiveness skills can enhance engagement by helping employees meet job demands and achieve work goals (Priyono et al., 2022; Wibawa et al., 2021). Employees who possess strong time and stress management skills are better equipped to handle work challenges, experience less burnout and maintain higher levels of vigour and dedication (Yener et al., 2021). However, the relationship between life–work effectiveness skills and engagement may be complex, as these skills may operate indirectly through other mechanisms or may be more strongly related to performance outcomes than to engagement per se (Kalra et al., 2020):

Harmony of life skills refers to the ability to balance personal and professional responsibilities, maintain work–life balance and integrate different life domains in ways that promote overall well-being (Obeng et al., 2025). Unlike life–work effectiveness skills, which focus on task management and efficiency, harmony of life skills emphasises holistic well-being and the integration of work and non-work life.

Work–life balance has been consistently linked to positive employee outcomes, including engagement, satisfaction and retention (Obeng et al., 2025). According to COR Theory, employees who successfully balance work and personal life are better able to maintain and replenish their resources, preventing resource depletion and burnout (Choirisa, 2023; Obeng et al., 2025). When employees experience harmony between their work and personal lives, they are more likely to feel energised, motivated and engaged at work (Asan et al., 2020).

Research in collectivist cultures, including Indonesia, suggests that harmony and balance are particularly valued, and that employees who achieve work–life harmony experience higher levels of well-being and engagement (Choirisa, 2023; Wibawa et al., 2021). The ability to maintain harmony across life domains represents a vital personal resource that can enhance engagement by satisfying needs for autonomy and relatedness (Camilleri, 2021):

Perceived organisational support reflects employees’ beliefs about the extent to which their organisation values their contributions and cares about their well-being (Meira & Hancer, 2021; Rasool et al., 2021). Perceived organisational support is a critical organisational resource consistently linked to positive employee outcomes, including engagement, commitment and performance (Asan et al., 2020; Priskila et al., 2021; Suharto & Suprapto, 2023).

According to SET, when employees perceive high levels of organisational support, they feel obligated to reciprocate by increasing their effort, commitment and engagement (Meira & Hancer, 2021; Wei et al., 2022). Perceived organisational support signals to employees that the organisation is invested in their success and well-being, thereby enhancing their sense of psychological safety and motivation to contribute (Rasool et al., 2021).

Empirical research has consistently demonstrated a positive relationship between POS and employee engagement across diverse contexts (Asan et al., 2020; Nengrum et al., 2025; Utami et al., 2023). Studies in Indonesian contexts have found that POS is a significant predictor of engagement among both younger and more experienced employees (Wibawa et al., 2021; Wiryawan, 2025). Furthermore, research has shown that POS can buffer the negative effects of toxic work environments and work stressors on engagement and well-being (Rasool et al., 2021):

Employee loyalty encompasses emotional attachment to the organisation, commitment to organisational goals and the intention to remain with the organisation (Ha, 2023; Hernandez Jaime & Encabo, 2024). While engagement represents a psychological state characterised by vigour and dedication, loyalty reflects a more enduring attitude and behavioural intention (Wei et al., 2022).

Life–work effectiveness skills may contribute directly to employee loyalty by enabling employees to perform effectively, achieve their goals and experience success in their roles (Kalra et al., 2020). Employees who possess strong time and stress management skills are better able to meet job demands, avoid burnout and maintain positive attitudes towards their organisation (Yener et al., 2021). These positive experiences may translate into greater loyalty, as employees who feel competent and successful are more likely to remain committed to their organisation (Camilleri, 2021).

However, the relationship between life–work effectiveness skills and loyalty may be more complex than a simple direct effect. While these skills enhance performance and reduce stress, they may not directly foster the emotional attachment and commitment that characterise loyalty (Ha, 2023). Instead, life–work effectiveness skills may operate primarily through engagement or other mediating mechanisms:

The ability to maintain harmony between work and personal life is increasingly recognised as an essential determinant of employee attitudes and retention (Obeng et al., 2025). Employees who successfully balance work and personal responsibilities experience greater well-being, satisfaction and commitment to their organisation (Asan et al., 2020).

According to COR Theory, work–life balance represents a vital resource that helps employees maintain psychological well-being and prevent resource depletion (Choirisa, 2023; Obeng et al., 2025). When employees experience harmony across life domains, they are less likely to experience work–family conflict, burnout and turnover intentions (Obeng et al., 2025). This sense of balance and well-being may translate into greater loyalty, as employees who feel that their organisation supports their overall life harmony are more likely to remain committed (Asan et al., 2020).

However, the relationship between harmony of life skills and loyalty may be indirect, operating primarily through engagement or other mediating variables (Ha, 2023; Utami et al., 2023). While the harmony of life skills contribute to well-being and engagement, they may not directly foster the organisational commitment and attachment that characterise loyalty:

The relationship between organisational support and employee loyalty is well established in the literature (Hernandez Jaime & Encabo, 2024; Wei et al., 2022). According to SET, when employees perceive that their organisation supports them, they feel obligated to reciprocate with loyalty, commitment and extra-role behaviours (Meira & Hancer, 2021; Wei et al., 2022).

Empirical research has consistently demonstrated a positive relationship between POS and loyalty across diverse contexts and cultures (Ha, 2023; Valentina & Putra, 2024). Studies have shown that POS predicts not only attitudinal loyalty (emotional attachment and commitment) but also behavioural loyalty (retention and organisational citizenship behaviours) (Palupi et al., 2024; Priskila et al., 2021). In collectivist cultures such as Indonesia, where reciprocity and group harmony are highly valued, the relationship between organisational support and loyalty may be particularly strong (Choirisa, 2023; Wibawa et al., 2021):

Employee engagement, characterised by vigour, dedication and absorption in work, represents a positive psychological state consistently linked to loyalty and retention (Ha, 2023; Valentina & Putra, 2024). Engaged employees are more likely to identify with their organisation, feel committed to organisational goals and intend to remain with the organisation (Jha et al., 2019; Kapil & Rastogi, 2019).

The relationship between engagement and loyalty can be explained through multiple theoretical lenses. According to the JD-R model, engagement represents a motivational state that leads to positive organisational outcomes, including commitment and retention (Priyono et al., 2022; Wibawa et al., 2021). From a social exchange perspective, engaged employees who experience positive work experiences feel obligated to reciprocate through loyalty and commitment (Meira & Hancer, 2021). Self-Determination Theory suggests that engagement, which reflects the satisfaction of basic psychological needs, naturally leads to greater responsibility and loyalty (Camilleri, 2021).

Empirical research has consistently demonstrated a positive relationship between engagement and loyalty across diverse contexts (Ha, 2023; Valentina & Putra, 2024). Studies in Asian contexts, including Indonesia and Vietnam, have found that engagement is a significant predictor of employee loyalty across sectors (Ha, 2023; Wibawa et al., 2021):

While direct relationships between resources (life–work skills and organisational support) and loyalty are essential, the mediating role of engagement offers a more complete understanding of the mechanisms by which these resources influence loyalty (Suharto & Suprapto, 2023; Utami et al., 2023). According to the JD-R model, job resources foster engagement, which in turn leads to positive organisational outcomes (Priyono et al., 2022; Scholze & Hecker, 2024).

Recent research has provided strong evidence for the mediating role of engagement in the relationships between various resources and outcomes. Studies have shown that engagement mediates the relationships between POS and performance (Suharto & Suprapto, 2023), between self-efficacy and performance (Utami et al., 2023), between employee voice and organisational effectiveness (Jha et al., 2019), and between POS and organisational citizenship behaviour (Palupi et al., 2024; Priskila et al., 2021).

In the context of life–work skills and organisational support, engagement may serve as a critical mediator. Life–work skills and organisational support represent resources that help employees meet job demands and achieve work goals (Wibawa et al., 2021). These resources foster engagement by enhancing employees’ sense of competence, autonomy and relatedness (Camilleri, 2021). In turn, engaged employees who experience vigour, dedication and absorption in their work are more likely to develop an emotional attachment and commitment to their organisation, which manifests as loyalty (Ha, 2023; Valentina & Putra, 2024).

The mediating role of engagement may be crucial in collectivist cultures such as Indonesia, where relational dynamics and reciprocity are highly valued (Choirisa, 2023; Wibawa et al., 2021). When organisations provide support and employees possess practical life–work skills, these resources foster engagement, which in turn strengthens the Social Exchange relationship and enhances loyalty:

Based on the theoretical foundations and the 10 research hypotheses developed above, the proposed conceptual framework for this study is illustrated in Figure 1. The framework depicts the relationships among the three exogenous variables (life–work effectiveness skills, harmony of life skills and organisational support), the mediating variable (employee engagement) and the endogenous outcome variable (employee loyalty). The model posits that employee engagement mediates the effects of life–work skills and organisational support on employee loyalty.

This study employed a quantitative, cross-sectional research design to examine the relationships among life–work skills, organisational support, employee engagement, and employee loyalty. Data were collected from 200 permanent employees working in diverse industrial sectors across Indonesia, including manufacturing, services, finance and technology. The sample was selected using a purposive sampling technique. While this method is appropriate for theory testing and ensures that participants meet the specific criteria of being permanent employees across multiple industries, it does not guarantee statistical representativeness of the entire Indonesian workforce. Unlike probability sampling methods such as stratified random sampling, purposive sampling limits the generalisability of findings to the broader population. However, for the purpose of examining theoretical relationships using Partial Least Squares Structural Equation Modelling (PLS-SEM), this sampling strategy is considered acceptable, as it prioritises the inclusion of information-rich cases that align with the study’s focus (Ringle et al., 2020).

The sample size of 200 was determined based on Hair’s 10-times rule for PLS-SEM, which recommends a minimum sample size of 10 times the largest number of structural paths directed at a particular construct in the structural model (Ringle et al., 2020). Given the complexity of the proposed model, a sample size of 200 provides adequate statistical power to detect medium- to-large effect sizes.

The demographic characteristics of the 200 respondents are presented in Table 1. The sample comprised 117 male employees (58.5%) and 83 female employees (41.5%), with ages ranging from 25 years to 55 years (mean age = 35.49 years, SD = 7.21 years). In terms of educational background, the majority held bachelor’s degrees (47.5%), followed by master’s degrees (31.5%) and diplomas or equivalent qualifications (21.0%). Tenure ranged from 2 years to 20 years (mean tenure = 8.16 years, SD = 4.27 years), reflecting a balanced mix of relatively new and experienced employees. The respondents represented diverse industrial sectors, including services (29.0%), finance (26.0%), manufacturing (23.0%) and technology (22.0%).

All constructs were measured using established scales adapted from previous research and validated in the Indonesian context. Items were measured on a 5-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree).

Life–work effectiveness skills were measured using a 10-item scale adapted from previous research on time management and stress management (Kalra et al., 2020; Yener et al., 2021). Sample items include ‘I effectively manage my time to complete work tasks’ and ‘I use effective strategies to manage work-related stress’.

Harmony of life skills was measured using an 8-item scale adapted from work–life balance research (Obeng et al., 2025). Sample items include ‘I successfully balance my work and personal life’ and ‘I maintain harmony across different areas of my life’.

Organisational support was measured using an 8-item scale adapted from the Survey of POS (Meira & Hancer, 2021; Rasool et al., 2021). Sample items include ‘My organisation values my contributions’ and ‘My organisation cares about my well-being’.

Employee Engagement was measured using a 9-item scale adapted from the Utrecht Work Engagement Scale (Priyono et al., 2022; Wibawa et al., 2021). The scale includes three dimensions: vigour (e.g. ‘At work, I feel full of energy’), dedication (e.g. ‘I am enthusiastic about my job’) and absorption (e.g. ‘I am immersed in my work’).

Employee Loyalty was measured using a 7-item scale adapted from previous research on organisational commitment and loyalty (Ha, 2023; Hernandez Jaime & Encabo, 2024). Sample items include ‘I feel a strong sense of belonging to this organisation’ and ‘I intend to remain with this organisation for the foreseeable future’.

Data were collected through an online survey distributed via email and organisational communication channels. The data collection period spanned approximately 2 months, from December 2024 to January 2025. Participation was voluntary, and respondents were assured of confidentiality and anonymity. The survey took approximately 20–25 min to complete. To minimise common method bias, procedural remedies were employed, including ensuring respondent anonymity, separating predictor and criterion variables in the questionnaire, and using clear, concise language (Ringle et al., 2020).

Data were analysed using PLS-SEM in SmartPLS 4.0 (Monheim am Rhein, Germany) (Ringle et al., 2020). Partial Least Squares Structural Equation Modelling was chosen for several reasons: (1) it is appropriate for exploratory research and theory development, (2) it can handle complex models with multiple relationships, (3) it does not require multivariate normality assumptions, and (4) it is effective with relatively small sample sizes (Ringle et al., 2020; Yener et al., 2021).

The analysis proceeded in two stages. Firstly, the measurement model was assessed to ensure the reliability and validity of the constructs. Indicators of measurement quality included composite reliability (CR > 0.70), average variance extracted (AVE > 0.50) and discriminant validity assessed using the Fornell–Larcker criterion and Heterotrait–Monotrait (HTMT) ratio (Ringle et al., 2020). Secondly, the structural model was evaluated to test the hypothesised relationships. Path coefficients, t-values and significance levels were estimated using bootstrapping with 5000 resamples. The mediating effects were assessed using the specific indirect effects approach, examining whether the indirect effects were significant and whether they represented partial or complete mediation (Suharto & Suprapto, 2023; Utami et al., 2023).

Ethical clearance to conduct this study was obtained from the Faculty of Economics and Business, University of Jember Research Ethics Committee (Ref. No. 7661/UN25.3.1/LT/2024).

The measurement model demonstrated satisfactory reliability and validity (Table 2). All constructs exhibited CR values above 0.80, indicating good internal consistency (Ringle et al., 2020). Average variance extracted values ranged from 0.811 to 0.832, exceeding the recommended threshold of 0.50, indicating adequate convergent validity. Discriminant validity was established using both the Fornell–Larcker criterion and the HTMT ratio (Table 3), with all values meeting the recommended thresholds (Ringle et al., 2020).

Factor loadings for all items exceeded 0.700, with most exceeding 0.884, indicating that items were strongly associated with their respective constructs. Items with loadings below 0.700 were removed during the preliminary analysis to improve measurement quality. The final measurement model included all five constructs with satisfactory psychometric properties.

The structural model was assessed by examining path coefficients, t-values and R² values. The model explained a moderate amount of variance in employee engagement (R² = 0.283, adjusted R² = 0.272) and employee loyalty (R² = 0.485, adjusted R² = 0.474), indicating acceptable predictive power for the proposed relationships (Ringle et al., 2020; Wibawa et al., 2021).

While the R² values for employee engagement (0.283) and loyalty (0.485) may be considered moderate, recent methodological literature suggests that R² can serve as a meaningful indicator of model informativeness, even when not exceedingly high (Li, 2024). This is particularly relevant in organisational behaviour research, where human attitudes and behaviours are influenced by numerous unobserved factors.

The results (Table 4) provide support for seven of the 10 hypotheses.

This study makes several significant theoretical contributions to the literature on employee engagement and loyalty. Firstly, it demonstrates the differential effects of two types of life–work skills on engagement and loyalty (Kalra et al., 2020; Obeng et al., 2025). While both harmony of life skills (work–life balance) and life–work effectiveness skills (time and stress management) significantly predict engagement, neither directly predicts loyalty. Instead, their influence on loyalty is fully mediated by employee engagement. This distinction clarifies that different types of personal resources contribute to loyalty primarily through psychological engagement rather than through direct attitudinal pathways.

The finding that life–work effectiveness skills significantly predict engagement (β = 0.199, p < 0.05) aligns with the JD-R model, which posits that personal resources can enhance engagement by helping employees manage job demands (Priyono et al., 2022; Wibawa et al., 2021). This result is consistent with empirical work by Yener et al. (2021), who found that time management skills, a core component of life–work effectiveness, were positively associated with employee vigour and dedication (β = 0.32, p < 0.01) among Turkish professionals. Similarly, Kalra et al. (2020) demonstrated that, among sales professionals, employees with stronger time management skills reported higher levels of work engagement (β = 0.28, p < 0.05) as they were better able to cope with competitive work environments. Similarly, the finding that harmony of life skills significantly predicts engagement (β = 0.250, p < 0.01) reinforces the importance of work–life balance as a personal resource. This finding corroborates recent research by Obeng et al. (2025), who reported that work–life balance had a significant positive effect on psychological well-being and engagement (β = 0.41, p < 0.001) among healthcare workers in Ghana. The result also aligns with Asan et al. (2020), who found that employees in Indonesia who perceived greater work–life harmony demonstrated higher levels of engagement (r = 0.38, p < 0.01), suggesting that the ability to balance personal and professional responsibilities is particularly valued in collectivist cultures where harmony is a central cultural value.

The finding that life–work effectiveness skills and harmony of life skills do not directly predict loyalty, while initially counterintuitive, is consistent with emerging research. Yener et al. (2021) initially hypothesised a direct link between time management and organisational commitment, but their results ultimately showed that this relationship was fully mediated by reduced burnout. Similarly, Kalra et al. (2020) found that time management skills influenced retention-related outcomes only indirectly through performance and satisfaction. The present study’s finding that engagement fully mediates this relationship provides important clarification and extends this line of inquiry to the Indonesian context.

Secondly, this study provides strong evidence for the mediating role of employee engagement in the relationships between organisational support and loyalty, and between both types of life–work skills and loyalty (Palupi et al., 2024; Suharto & Suprapto, 2023). Engagement fully mediates the effects of life–work skills on loyalty, whereas it partially mediates the effect of organisational support on loyalty. This partial mediation indicates that organisational support influences loyalty through multiple pathways – both directly via Social Exchange processes and indirectly via engagement (Meira & Hancer, 2021; Wei et al., 2022).

The mediating role of engagement found in this study aligns with and extends previous empirical research. Utami et al. (2023) similarly found that engagement fully mediated the relationship between self-efficacy and employee performance (indirect effect = 0.21, p < 0.05) in their Indonesian study. Suharto and Suprapto (2023) reported that engagement partially mediated the POS-performance relationship (indirect effect = 0.18, p < 0.01), which parallels the partial mediation found in the present study (indirect effect = 0.114, p < 0.05). The pattern of mediation also contributes to the growing literature on engagement as a mechanism in collectivist cultures. Priskila et al. (2021) and Palupi et al. (2024) both found that engagement mediated the relationship between POS and organisational citizenship behaviour among Indonesian employees, with indirect effects ranging from 0.15 to 0.22.

Thirdly, this study contributes to the literature on employee engagement and loyalty in collectivist cultures (Choirisa, 2023; Wibawa et al., 2021). The observed pattern of relationships – particularly the strong direct and indirect effects of organisational support on loyalty – underscores the importance of relational reciprocity and group harmony in Indonesian contexts. This finding is consistent with research by Asan et al. (2020) and Rasool et al. (2021), who demonstrated that POS has both direct and indirect effects on employee outcomes across various cultural contexts. However, the magnitude of these effects in the present study (direct effect β = 0.125; indirect effect β = 0.114) suggests that in collectivist cultures, the Social Exchange mechanism may be particularly salient, as employees are more attuned to reciprocity and organisational care (Wibawa et al., 2021). This supports the cross-cultural applicability of the JD-R model and SET while also highlighting cultural nuances in how resources translate into loyalty (Meira & Hancer, 2021; Priyono et al., 2022).

While this study provides valuable insights, several limitations should be acknowledged. Firstly, the cross-sectional research design precludes definitive causal inferences (Ringle et al., 2020). The relationships identified, particularly the mediating role of employee engagement, should be interpreted as associative rather than causative. Future studies could employ longitudinal or experimental designs to establish temporal precedence and strengthen causal claims (Scholze & Hecker, 2024). Additionally, there is a risk of omitted-variable bias, as this study may not account for all factors that influence employee engagement and loyalty. Future research should consider incorporating a broader range of variables or using techniques such as instrumental variable analysis to mitigate this bias and enhance the robustness of causal inference.

Secondly, the sample, though adequate for the analytical technique employed, comprised only 200 permanent employees across various industrial sectors in Indonesia (Ringle et al., 2020). This may affect the statistical power and the generalisability of the findings. Replication studies with larger, more diverse samples, including non-permanent or gig-economy workers, would enhance the external validity of the results (Wibawa et al., 2021). Additionally, future research could examine these relationships in other cultural contexts to assess the cross-cultural validity of the findings (Priyono et al., 2022).

Thirdly, data for all constructs were collected from a single source (employee self-reports) using the same method (questionnaires), which raises the possibility of standard method bias (Ringle et al., 2020). Although procedural remedies were employed (e.g. ensuring respondent anonymity), future research would benefit from incorporating multi-source data (e.g. supervisor ratings of loyalty or engagement) to mitigate this potential bias (Suharto & Suprapto, 2023).

Fourthly, this study employed reflective indicators for all constructs, including life–work effectiveness skills, which were conceptualised as reflective manifestations of broader self-management competence (Ringle et al., 2020). Future research could explore formative measurement approaches for such skill-based constructs, in which indicators represent distinct components that collectively form the latent construct rather than reflecting a single underlying trait (Kalra et al., 2020).

Despite these limitations, this research lays a solid foundation for future inquiry. Subsequent investigations could explore the potential moderating roles of variables such as organisational culture, leadership style and personality traits (Hernandez Jaime & Encabo, 2024; Valentina & Putra, 2024). Additionally, future research could examine these dynamics within specific industrial contexts to uncover sector-specific nuances (Wibawa et al., 2021). Finally, future studies could further investigate the mechanisms through which life–work effectiveness skills influence engagement and, indirectly, loyalty, given that engagement fully mediates this relationship (Kalra et al., 2020; Yener et al., 2021).