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The Relationship Between Work-Life Balance (WLB) and Firm Performance
Abstract
It is paramount that firms accurately assess the cost-effectiveness of WLB policies as initiatives to conduct such policies involve cost. WLB policies should be considered due to synergistic effects by employing a variety of policies. The benefits are usually under-estimated while the costs over-estimated, as the latter is easier to measure. Until longitudinal research is conducted, we cannot discount the possibility that successful organizations are more likely to offer WLB practices, and that the practices themselves are not exerting any favorable effect on organizational performance. Instead, it might simply be that organizations offering WLB practices are more predisposed to engaging in high-quality management practices and that this approach usually generates a positive effect on employees and performance outcomes. Thus, we can surmise that improved firm performance is a result of effective management usually associated with the implementation of WLB policies in the workplace, and not solely because of WLB per se.
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