Life and Work: Management Decisions and Employee Well-Being

Abstract

The focus on work-life balance has increased exponentially over the past two decades. Research has demonstrated that achieving this equilibrium leads to enhanced personal and professional satisfaction. Moreover, organizations benefit from improved work-life balance among employees, as it facilitates more efficient time and task allocation, thereby increasing productivity. The aim of this study was to estimate the effect of eight employee benefits on self-reported life satisfaction among workers. Logit equations were employed, utilizing data from a national well-being survey. The sample size exceeded 10 000 individuals, representing a population of over 30 million employees in Mexico. To assess the impact on well-being, the benefits were ranked from most to least frequent. The most common benefit was the mandatory year-end bonus (‘aguinaldo’), while profit sharing was the least frequent. Results indicated that employees with a higher number of benefits have a greater probability of reporting satisfaction with their current and future life. The study also reports that the positive effect of employee benefits increases when organizations complementarily implement other labor strategies, such as annual income increases and considering employee opinions. The estimates were consistent, thus providing useful evidence for managers to design organizational policies that simultaneously contribute to employee well-being and promote higher productivity in both the short and long term.