Relationship between availability of WLB practices and financial results

Purpose The purpose of this paper is to investigate the effect of work-life balance (WLB) practices on the financial results of Spanish accounting audit SMEs. Design/methodology/approach Using survey data from 148 Spanish accounting audit SMEs, a regression analysis was developed to estimate the dir...

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Bibliographic Details
Published in:	Personnel review 2019-05, Vol.48 (4), p.935-956
Main Authors:	Martínez-León, Inocencia María, Olmedo-Cifuentes, Isabel, Sanchez-Vidal, M. Eugenia
Format:	Article
Language:	eng
Subjects:	Accounting Decision making Employees Employers Holidays & special occasions Human resource management Labor contracts Maternity & paternity leaves Productivity Social exchange theory Unemployment Wages & salaries Work life balance
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Summary:	Purpose The purpose of this paper is to investigate the effect of work-life balance (WLB) practices on the financial results of Spanish accounting audit SMEs. Design/methodology/approach Using survey data from 148 Spanish accounting audit SMEs, a regression analysis was developed to estimate the direct effects of WLB practices on firms’ financial results (return on capital employed and return on assets). Firm age and size are considered as control variables. Findings Senior managers should foster some WLB practices (time-reduction and flexible-work practices) so as to enhance SME audit firms’ financial results. Work-leave practices should be analyzed so as to promote some positive outcomes for firms, through internal reorganization or by reorienting employees to resorting to the most beneficial practices. Practical implications Not all WLB practices have positive effects on the business results of SMEs. Therefore, managers may try to reduce these negative effects or redirect employees to WLB practices that have more positive effects on their firms’ financial results. Strategic information is also provided to employees and public institutions about fostering WLB in SMEs. Social implications The availability of WLB practices has been deemed fundamental not only for policy makers and society, but also for the organizational culture and for human resource management practices. Originality/value This study is the first to investigate the association between the availability of WLB initiatives in SMEs and firms’ financial results.
ISSN:	0048-3486 1758-6933