Remote Work Challenges in the Knowledge Economy: The Mediating Role of Family Motivation in Well-Being and Leadership Trust Dynamics

In the era of the knowledge economy, the shift to remote work has transformed the global labor force, offering flexibility while challenging employee well-being. This study investigates the impact of leadership trust on subjective well-being (SWB), with family motivation as a mediating factor, hypothesizing a positive interplay among home-based employees. Using Schwartz’s portrait value questionnaire, data from 250 employees in Pakistan’s tech, service, and healthcare sectors, engaged in online or hybrid setups, was analyzed via SPSS 25. Results reveal that family motivation significantly mediates the trust-well-being link, highlighting that supportive leadership fosters a harmonious work-life balance, boosting overall well-being. Trust in leadership (0.644) and motivation (0.626) have strong correlations with the total scale, indicating they fit well and contribute significantly to the overall measure. Work_From_Home (0.369) and Subjective Well-Being (S_W_B) (0.390) have moderate correlations, suggesting they contribute but are less central to the scale. Family motivation correlated positively with trust in leadership (r = 0.663, p < 0.01) and SWB (r = 0.401, p < 0.01). The model shows that work from home (WFH) is significant (F = 15.126, p < 0.001), with trust in leadership (β = 0.298, p = 0.001) and family motivation (β = 0.161, p = 0.060) as notable predictors. Subjective Well-Being SWB has no significant direct effect (β = -0.005, p = 0.940). The findings underscore the need for adaptive leadership strategies in the evolving knowledge economy, offering practical insights to enhance remote workforce engagement, productivity, and resilience in a digitally driven world.