Abstract:
Employee performance is one of the challenging issues that have been identified to affect
organizations. This has been attributed to the high involvement of employees across
multiple roles between work and family contexts. Employees in Kenya Electricity
Generating Company continue to experience a variety of work-related stress attributed to
the nature of work operations that affect their work-life balance and performance.
Although empirical research has confirmed that there is a positive effect of work-life
balance on employee performance, there is a need for more interrogation with a focus on
the moderating effect of flexible working arrangements on work-life balance and
employee performance. The main objective of the study was to determine the moderating
effect of Flexible Working Arrangements on Work-Life Balance and Employee
Performance in Kengen. The specific objectives of the study were to establish the effect
of stress management, personal life management, career development, technological
advancement, and Flexible Working Arrangements on employee performance; and the
moderating effect of Flexible Work Arrangements on these relationships. The study was
anchored on Integration theory, complemented by Person-Environment Fit and Social
Exchange Theories. The study was underpinned by a positivist research paradigm. An
explanatory research design was used and was cross-sectional and targeted 2487
employees comprising senior, middle, and junior employees in Kengen Company. The
study sample size was 331 respondents and a stratified sampling technique was used
based on the Krejcie and Morgan Data was analyzed using descriptive statistics including
means, frequencies, and standard deviations while inferential statistics used hierarchical
regression analysis. The findings of the study revealed that stress management, career
development, and technological advancement have a significant effect on employee
performance (β1=0.314, ρ<0.05) (β3=0.192, ρ=<0.05), (β4=0.300, ρ<0.05) respectively.
However, personal life management and flexible working arrangements do not have a
significant effect on employee performance (β2=0.018, ρ>0.05), (β5=0.029, ρ>0.05).
Further, the study established that Flexible Working Arrangements negatively and
significantly moderate stress management and employee performance while Flexible
Working Arrangements positively and significantly moderate personal life management
and employee performance (β1= -.150, ρ=<0.05), (β2=0.155, ρ=<0.05) respectively.
Furthermore, the study showed that Flexible Working Arrangements did not moderate
career development and technological advancement with employee performance
(β3=0.087, ρ=>0.05), (β4= -.031, ρ>0.05) respectively. R
2
change increased by 0.016%
with an enhanced mod graph moderation effect whereby the use of flexible working
arrangements led to increased stress management techniques and improved employee
performance. In conclusion, stress management, career development, and technological
advancement are key predictors of employee performance and Flexible Working
Arrangements support employees to manage stress and personal lives. This study
recommends that organizations should provide continuous training on task prioritization,
and problem-solving skills, and enhance supervisor support to improve stress
management knowledge among employees. Additionally, regular assessment and
adjustment of workloads should be embraced to cushion employees from experiencing
stress, and company management should develop a work culture that supports Personal
Life Management through open communication. Further research on the moderating
effect of Flexible Working Arrangements on Work-Life Balance and employee
performance should be extended to other sectors in developing countries by utilizing
pragmatic approaches.