Optimizing Employee Performance: The Effect of Talent Management, Participative Leadership, Work-life Balance with Job Satisfaction as a Mediator

Abstract This study underscores the critical role of human resource development, focusing on talent management, leadership involvement in grassroots innovation, and work-life balance. The research uses Covariance-based Structural Equation Modeling with 840 employees of the Ministry of Finance from all provinces in Indonesia. The result reveals that talent management and participative leadership have a significant influence on job satisfaction and employee performance in a positive direction. Participative leadership is the biggest factor in increasing job satisfaction and employee performance. The work-life balance variable has a significant influence on job satisfaction, but it unexpectedly does not significantly impact employee performance, highlighting the nuanced relationship influenced by workload and contextual factors within the organization. Furthermore, the mediating role of job satisfaction in the correlation between independent and dependent variables is underscored, with indicators such as the teamwork environment and the reward system identified as crucial aspects contributing to job satisfaction and, subsequently, enhancing overall employee performance. This study implies strengthening human resource strategies by aligning talent management and participative leadership to foster a positive workplace culture and enhance job satisfaction. It also emphasizes the importance of tailored approaches to work-life balance, considering its complex relationship with performance in government institutions.