Work-life balance and firm performance: A causal approach

With the contemporary human resource practices focussing on employees’ work-life balance, it is essential to study the impact of such practices on the firm performance. Firms are always on the lookout for ways to maximize their profits and increase their market standing and market share of their products and services. Hence, it becomes essential for the firms In the current business context to focus on the employee attrition rates and make use of the available intellectual capital. In this regard, providing opportunities for improving the work-life balance of the employees is crucial. This paper attempts to study the factors that affect the work-life balance and develop a model that can pinpoint the vital factors affecting the employee work-life balance that in turn reflects on the employee performance and ultimately the firm performance, using system dynamics simulation approach.