1.1 Introduction
Work-life balance refers to the extent to which individuals are able to effectively manage the demands of their work roles alongside their personal, family, and social responsibilities without undue stress or role conflict. It involves the ability to allocate time and energy in a manner that promotes both professional effectiveness and personal well-being (Greenhaus & Allen, 2011). Employee productivity, on the other hand, is a measure of how efficiently and effectively employees perform their assigned tasks to achieve organizational goals. It is commonly assessed in terms of output quality, timeliness, commitment, and overall performance at work. Productivity remains a key determinant of organizational success, particularly in the banking sector where efficiency, accuracy, and customer satisfaction are essential for competitiveness and sustainability (Armstrong & Taylor, 2020).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are significance of the study, scope of work, research hypothesis and questions, limitation of the study and definition of terms.
1.2 Background of Study
Work-life balance has emerged as a central issue in organizational and human resource management due to changing work patterns, increased competition, and evolving employee expectations. According to Greenhaus and Allen (2011), work-life balance reflects the degree to which individuals are able to equally engage and find satisfaction in their work and personal life roles. In recent decades, organizations have experienced growing pressure to maximize performance and productivity, often resulting in extended working hours and increased workload for employees.
The banking sector is widely recognized as one of the most demanding work environments. Guest (2017) reported that employees in financial institutions frequently experience high levels of stress due to performance targets, customer expectations, and strict regulatory requirements. Merchant banks, in particular, operate within highly competitive and volatile financial markets, requiring employees to demonstrate efficiency, accuracy, and responsiveness at all times.
Armstrong and Taylor (2020) asserted that productivity is not solely a function of skills and technology but is significantly influenced by employees' physical and psychological well-being. When employees are unable to balance work and non-work responsibilities, their concentration, motivation, and job satisfaction tend to decline, which negatively affects productivity. In contrast, supportive work-life balance practices have been linked to improved morale, commitment, and performance.
Noe et al. (2020) stated that organizations that invest in flexible work arrangements, reasonable workloads, and employee support systems often experience higher levels of productivity and lower turnover rates. These findings suggest that work-life balance is not merely a welfare issue but a strategic tool for achieving sustainable organizational performance. However, despite this understanding, many organizations still equate long working hours with higher productivity, a perception that may be misleading and counterproductive. In the context of developing economies, the challenges of work-life balance are even more pronounced.
Adebayo (2019) affirmed that economic pressures, job insecurity, and limited employment opportunities compel many employees in Nigerian banks to accept excessive workloads and long hours, often at the expense of their personal lives. Merchant banks, which rely heavily on skilled and experienced professionals, are particularly vulnerable to the negative consequences of poor work-life balance.
Furthermore, scholars have drawn attention to the need for sector-specific studies on work-life balance. Oludayo et al. (2018) contend that organizational culture, job design, and management practices vary across institutions, making it inappropriate to generalize findings from one sector to another. Despite the critical role merchant banks play in economic development, there is limited empirical research focusing specifically on how work-life balance affects employee productivity within these institutions. Against this background, examining work-life balance and its effect on employee productivity within a merchant bank becomes both timely and necessary. This study is set against the backdrop of increasing work demands and the need for sustainable employee productivity in the merchant banking sector.
1.3 Statement of Problems
In the contemporary banking sector, particularly within merchant banks, employees are confronted with increasing job demands arising from extended working hours, high performance targets, strict regulatory compliance, and intense competition. In many merchant banks, employees are expected to meet tight deadlines, attend to clients beyond regular working hours, and adapt continuously to technological and organizational changes (Greenhaus & Allen, 2011).
Additionally, maintaining an effective work-life balance is increasingly linked to positive employee outcomes such as improved concentration, higher motivation, better health, and sustained productivity. However, in the context of merchant banks, there is limited empirical evidence that clearly explains how work-life balance practices influence employee productivity. Many existing studies focus on general banking institutions or other sectors, thereby creating a contextual gap regarding merchant banks, which operate under unique pressure-driven environments (Armstrong & Taylor, 2020).
Furthermore, unresolved work-life balance issues often lead to increased absenteeism, presenteeism, and employee turnover, all of which impose additional costs on organizations. When skilled employees leave due to work-life imbalance, merchant banks not only incur recruitment and training costs but also experience disruptions in service delivery and customer relationships (Noe et al., 2020). It is against this backdrop that this study seeks to investigate work-life balance and its effect on employee productivity in a merchant bank.
1.4 Aim and Objectives of Study
The aim of this study is to investigate the effect of work-life balance on employee productivity in a merchant bank. The specific objectives of the study are:
- To examine the existing work-life balance practices in the merchant bank, to assess the level of employee productivity within the organization.
- To determine the relationship between work-life balance and employee productivity.
- To identify challenges affecting effective work-life balance in the study area.
- To suggest strategies for improving work-life balance to enhance employee productivity.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What work-life balance practices exist in the merchant bank?
- What is the level of employee productivity in the merchant bank?
- How does work-life balance affect employee productivity in the merchant bank?
- What challenges hinder effective work-life balance among employees?
- What strategies can be adopted to improve work-life balance and employee productivity?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
- H0: Work-life balance has no significant effect on employee productivity in the merchant bank.
- H1: Work-life balance has a significant effect on employee productivity in the merchant bank.
1.7 Significance of Study
It is believed that at the completion of the study, the findings will be beneficial to the society at large will benefit, as improved work-life balance will promote healthier employees, and increased organizational productivity, contributing to economic development. Also, the findings will support the integration of work-life balance initiatives into human resource management strategies within the banking industry.
Furthermore, the management of merchant banks will benefit from the findings, as the study will provide practical insights that will guide policy formulation and decision-making on employee welfare and productivity. In addition, human resource managers will find the study useful, as it will support the development of effective work-life balance strategies and employee support programs.
Lastly, researchers and academics will benefit, as the study will serve as a reference material for future research on work-life balance and productivity in the banking sector.
1.8 Scope of Study
The study focuses on work-life balance and its effect on employee productivity in a selected merchant bank located in Lagos State, Nigeria. The study covers employees across different departments of the bank and examines work-life balance practices, productivity levels, and related challenges within the organization.
1.9 Limitations of the Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.10 Definition of Terms
Work-Life Balance:
Work-life balance refers to the ability of employees to effectively manage work responsibilities alongside personal, family, and social obligations without experiencing excessive stress or role conflict (Greenhaus & Allen, 2011).
Employee Productivity:
Employee productivity is the measure of how efficiently and effectively employees perform their tasks to achieve organizational goals, often reflected in output quality, timeliness, and performance levels (Armstrong & Taylor, 2020).
Merchant Bank:
A merchant bank is a financial institution that specializes in corporate finance, investment services, and advisory roles for businesses and high-net-worth clients, operating in a highly competitive and regulated environment.
Job Stress:
Job stress refers to the physical and emotional strain experienced by employees when work demands exceed their ability to cope, often resulting from excessive workload and time pressure (Guest, 2017).
Organizational Performance:
Organizational performance refers to the overall effectiveness of an organization in achieving its objectives through efficient use of human and material resources (Noe et al., 2020).
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