Unlocking Productivity in the Digital Workplace: The Mediating Influence of Work–Life Balance on Remote Work Flexibility

Abstract

Remote work flexibility (RWF) has emerged as one of the most consequential workplace transformations of the twenty-first century, accelerated by the COVID-19 pandemic and sustained by structural shifts in how organizations conceptualize the relationship between place and performance. Despite growing practitioner interest, the mechanisms through which RWF influences employee productivity (EP) remain theoretically underspecified. Drawing on Conservation of Resources Theory and Person-Environment Fit Theory, this study investigates whether work-life balance (WLB) mediates the relationship between RWF and EP. Data were collected from 312 knowledge workers across multiple industries in Pakistan using a structured self-report questionnaire. Structural equation modeling via Hayes PROCESS Macro (Model 4) was employed. Results confirmed a significant positive direct effect of RWF on EP (β = .318, p < .001) and a significant indirect effect operating through WLB (β = .277, 95% CI [.204, .351]). WLB fully mediated the pathway from temporal flexibility to EP, while partial mediation characterized the spatial flexibility pathway. These findings contribute to the theoretical literature by specifying WLB as a critical psychological mechanism and offer actionable guidance for HR practitioners designing flexible work architectures. Limitations and future research directions are discussed.