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Employee productivity: The effect of flexible work arrangement, indoor air quality, location and amenities at one of multinational logistics providers in Indonesia

This research aims to know the effect of flexible work arrangement, indoor air quality, location and amenities towards employee productivity. This study is an associative quantitative research. The data were collected using questionnaires. The population of this research was 200 head office employees of PT XYZ in Jakarta, Indonesia. To select the sampling size, simple random sampling technique using Slovin formula was used. 67 sample was used based on the Slovin formula calculation. Multiple linear regression analysis using SPSS software was used to analyze the data. The results of this research show that there is significant effect of flexible work arrangement, indoor air quality, location and amenities towards employee productivity. However, flexible work arrangement has no significant effect towards employee productivity. Meanwhile indoor air quality, location and amenities have significant effect towards employee productivity.


Introduction
The employee productivity is essential for every companies. There are a lot of aspects that influence employee productivity. One of factors that affect employee productivity is flexible work arrangement. Flexible work arrangement come in a lot of formats. Flexi time, compressed work week, telecommuting, and part time work are the example of flexible work arrangement [1]. Flexi time and flexplace are also used by employees in order to achieve higher work outcomes [2]. Another employer's policy related to flexibility is work from home. The employee's productivity increases when they are given the choice to work from home [3]. Previous research in Spain showed that part time work, flexi time, compressed work week, and telecommuting are the most common flexible work arrangement practices which employees used [4]. However, previous research conducted in Indonesian setting explained flexible work options, specialized leave options, flexible working hours, telecommuting, and flexible shift arrangement are the flexible work arrangement that is commonly used [5], [6], [7]. Sustainable Human Resource Management has four dimensions such as justice and equality, transparent HR practices, profitability, and employee well-being. One of the transparent HR practices is flexibility [8]. The company in this research have no flexible work arrangement practices. The company is planning to apply the method in the near future based on the result of this research. The next factors that could influence employee productivity is indoor air quality. The indoor air quality is still considered current subject of research even though the phenomenon already known for a long time. Indoor air quality is one of the indoor environmental quality factors [9]. Indoor air quality is a marker of air quality inside the buildings and has strong effect on the productivity in the workplace [10]. Indoor air quality is essential as many people live in urban area and work inside the office building. A facility or an energy manager should understand the indoor air quality in order to suggest natural ventilation strategies and supply enough amount of fresh air to employees [9]. A conducive workplace helps reducing employee's absenteeism, turnover, and also increasing productivity and satisfaction [11]. Hence it is important to know the effect of indoor air quality towards employee productivity. Previous experiment showed that good air quality has significant effect towards employee's productivity on everyday task such as text typing [12]. Good indoor air quality is essential for both employers and employees as air pollutants are one of the reasons of lower productivity in the workplace [9]. Previous research in China showed that higher levels of air pollution diminish employee's productivity [13]. Jakarta, the capital city of Indonesia where this study is conducted, ranked number five in the world most polluted capital cities in 2019 [14]. Aside from that, the problems with the company in this study is it uses air conditioning without enough ventilation in the workspace. The company also use floor carpet which cause dust and dirt.
Another factors that might affect employee productivity is location and amenities. Office location and amenities are highly significant in characterizing the nature of working environment [11]. Previous research showed that if workplaces located near public infrastructure then employee would have higher satisfaction and the workplace would also attract more employees [15]. Offices that are located close to public transit services and cycle tracks would give health and well-being benefits to its employees. Such health benefits would result in more productive workplace. Amenities near the office could also influence employee productivity [11]. There are four types of primary amenities that the office should have near its location: health care or clinic, recreational spaces or sports facilities, entertainment options, and childcare facilities [16]. PT XYZ location is not near public infrastructure and a lot of employee use their personal vehicles to work. Related to facilities, the company only have meeting rooms and workspace. The company hopes to renovate its facilities in the future.
Flexible work arrangement, indoor air quality, location and amenities are important factors that influence employee's productivity and their well-being. Moreover, HR should develop policies in a sustainable manner that focus on employee's well-being [17]. The variables in this study is considered essential in order to practice the environmental sustainability within organization [18]. However, previous research stated that there would be conflict between productivity and employee well-being [19]. The tensions would arise because the company needs profit and at the same time has to meet the needs and aspirations of sustainable work environment [20]. Such conflict would be reduced if the sustainability is valued and promoted by the companies and line managers [21]. Based on the explanations above, therefore this research aims to find out the effect of flexible work arrangement, indoor air quality, location and amenities towards employee productivity at one of multinational logistic providers in Jakarta, Indonesia.

Sustainable human resource management
The research in sustainable human resource management is developed in multiple levels of analysis: individuals, process, organization and society, economic, ecological, social and human, and short and long-term time perspectives [18]. The purpose of sustainable human resource management is to diminish the negative impacts of organization on the environment, individuals, and society [22]. Sustainable HRM boosts employee's working life quality and performance [23]. Previous research on sustainable HRM and organizational outcome focused on turnover intention and employee engagement [24]. Good sustainable policies could improve workers' sense of belonging and as a result motivates them to work harder [25]. Furthermore, HRM practices that acknowledge work-life balance  [26]. Another thing to consider in sustainable HRM is environmental protection that could be measured by pollution prevention [27].

The effect of flexible work arrangement on employee productivity
Employees would welcome the flexibility created from the availability of flexible work arrangement practices which serve their necessities and are most likely to give back the companies in the form of increased productivity [28]. Previous research related to flexi time as one of the flexible work arrangement practice showed that it influenced labor productivity [29]. Previous experiment also showed the increase in productivity when the employees used flexible work arrangement practices [30]. Another format of flexible work arrangement is teleworking. High telework intensity (more than 8 hours per week) has significant relationship with individual productivity [31]. Work from home is another flexible work arrangement practice. However, previous research showed that software engineers opted not to do it because they felt difficult to complete the work at home. In contrast, employees that worked in marketing department chose to work from home when feeling unproductive at office [32]. The result from previous research showed employees admitted that flexi time and telecommuting could improve their productivity [2]. Flexible work arrangement practices that is used in this research are flexi time, compressed work week, telecommuting, and part time work. Such practice is similar with previous research [1].

The effect of indoor air quality on employee productivity
There are three types of productivity that are influenced by environmental design of workplace: individual, group, and organizational productivity [33]. Individual productivity is commonly assessed on how micro-environment influences individual task performance, or in other words, how quick and precise employees complete their task at work. Individual productivity is influenced by environmental conditions such as lighting and visual conditions, temperature and humidity variations, indoor air quality, furniture ergonomics, and acoustics. Positive individual productivity means improved speed and accuracy of the tasks [34]. A decent indoor air quality improves production qualities and assist with increasing worker productivity [35]. Perceptions of indoor air quality could be measured by pollutant levels or actual exposures [36]. Previous research explained that good indoor environment quality could increase occupant productivity [37]. Poor indoor air quality would result in poor productivity [38].

The effect of location and amenities on employee productivity
One of the office features that might affect employee productivity is spaces for social interaction, relaxation, and psychological restoration [39]. Previous research also suggested several factors to support employee productivity such as space for concentration and solo work, visual and auditory accessibility, location proximity, central location, facilities and spaces for meetings, proper areas to take a break, well-designed furniture, sufficient and appropriate storage space [40]. Another research mentioned that proximity to home, amenities or supplies, building locations are factors that should be met by companies thus the employees felt satisfied [20]. Office location and amenities also influenced occupant productivity [41].

Research hypothesis
Based on the previous research above, the hypotheses of this research are: • H1: There is significant effect of flexible work arrangement on employee productivity • H2: There is significant effect of indoor air quality on employee productivity • H3: There is significant effect of location and amenities on employee productivity • H4: There is significant effect of flexible work arrangement, indoor air quality, location and amenities on employee productivity

Research framework
The framework of this research could be seen in Figure 1.

Research methodology
This research is a quantitative research. The type of quantitative research used in this study is associative. The data was collected using 5-point Likert scale questionnaire to head office employees of PT XYZ. The questionnaire was created in Indonesian language to measure the employee perception on the effect of flexible work arrangement, indoor air quality, location and amenities towards employee productivity. The items measurement translation could be seen in Table 1. The population of this research is 200 head office employees of PT XYZ. Simple random sampling technique using Slovin formula was used to select the sample size. 67 sample was used in this research based on the Slovin formula calculation. The data then analysed using multiple linear regression with the help of SPSS software. Table 2 explained the profiles of 67 respondents used in this research.

Validity and reliability test
The validity test was conducted using df= n-2 (67-2=65) and 5% significance with the help of SPSS software. The data is valid if validity coefficient is greater than r table. The r table is calculated using SPSS and the value is 0.2. Table 3 shows the result of validity test.  The reliability test was conducted using SPSS software. The variable is considered reliable if the Cronbach's alpha value is greater than 0.6. The result of the reliability test is given in the Table 4.

Normality test
To test normality, this research use Kolmogorov Smirnov test. The data is distributed normally if the value of Asymp. Sig (2-tailed) is above 0.05. The normality test could be seen in Table 5.

Multicollinearity test
The aim of the multicollinearity test is to find out whether each independent variable have high correlation. Good regression model must not have correlation between independent variable. The multicollinearity test could be seen from the tolerance value and variance inflation factor (VIF). The multicollinearity does not happen if the tolerance value above 0.1 and the VIF value below 10. The result is shown in Table 6.

Heteroscedasticity test
Good regression model should not have heteroscedasticity therefore the sig. value must be above 0.05. Table 7 shows heteroscedasticity test result.

Multiple linear regression test
Multiple linear regression test is used to analyse the relationship between independent variable and dependent variable. Based on the adjusted r square value on Table 8, there is 31.7% of influence between flexible work arrangement, indoor air quality, location and amenities and employee productivity. While 68,3% are influenced by other variables not examined in this research.

Hypothesis test
F test and T test are used to assess the hypothesis of this research. Based on the F value in the Table 9, it could be concluded that there is significant effect between flexible work arrangement, indoor air quality, location and amenities towards employee productivity. Hence, H4 is accepted.  Based on Table 10, it could be said that there is no significant effect between flexible work arrangement and employee productivity. Therefore, H1 is rejected. In contrast, Indoor air quality has significant effect on employee productivity. Hence, H2 is accepted. Lastly, there is significant effect between location and amenities and employee productivity. Thus, H3 is accepted.

Discussion
This research showed that flexible work arrangement has no significant effect towards employee productivity. The result of this research contradicts previous research that stated flexible working arrangement has significant effect towards employee productivity [28]. Previous research in India showed that flexible work arrangement could impact employee's productivity [42]. However, the research is conducted in IT sector. This study is conducted in logistic sector even though only focus on one company. Previous research in pharmaceutical industry showed that flexi time, one of flexible working arrangement practice, was responsible for ten percent increase in productivity [43]. Tele work intensity, another flexible working arrangement practice, also influenced employee productivity [31]. Another research in Great Britain also explained that flexible employment arrangements have significant and positive relationship towards workplace performance [44]. Furthermore, research in South Africa examined that certain flexible work practices could improve productivity [45]. However, research in financial industry stated that flexible working hours had no effect on productivity [46].
The result of this study also showed that indoor air quality has significant effect towards employee productivity. The result is strengthened previous research that explained indoor air quality has significant effect towards employee productivity [11]. Another research also stated that indoor air quality has greater effect on employee productivity. If the office has good indoor air quality, then its workers productivity would improve [47]. Moreover, previous research showed that air quality has significant impact on employee productivity [48]. Another study also explained if indoor air quality is not good enough then the health and productivity of employees would be affected [49]. Furthermore, previous research in Malaysia indicated that indoor air quality is believed to be one of the factors that affect occupants' productivity [50]. Plants could be used to reduce indoor air pollutant [51]. The occupants of planted offices also feel more productive than occupants of non-planted offices [52]. Another research also showed that plants could affect employees' productivity [53].
The result of this research also showed that location and amenities have significant effect on employee productivity. The result is aligned with previous research that stated location and amenities could improve employee's productivity [11]. The rise of agile working affects the office function. The office is becoming a place to visit and interact with colleagues [54]. Thus, office location and amenities become important things. Spaces for social interaction, relaxation, and psychological restoration are one of the office features that affect employee productivity [39]. Other features that affect employee productivity are office proximity, central location, and decent area to rest [40]. Previous research in the Middle East showed that refreshment areas and canteen are office amenities that influence employee productivity [55]. Moreover, high-quality facilities and central locations are valued more by knowledge workers [56]. The office location becomes one of important factor that affects employee productivity because previous research in Australia explained that commuting distance impact workers productivity [57].

Conclusion
To conclude, H1 of this research is rejected while H2, H3, and H4 is accepted. The result of this research showed that flexible work arrangement does not have significant effect towards employee productivity. The result explained that the company in this study should not apply flexible work arrangement practices in the office. Indoor air quality has significant effect toward employee productivity. Therefore, PT XYZ should pay attention and maintain indoor air quality as it affects employee productivity. PT XYZ could also grow more plants in the office to reduce indoor air pollutant. The result also showed that location and amenities have significant effect on employee productivity. Based on this findings, PT XYZ should improve existing facilities by adding health care facilities or clinics, recreation rooms, sports facilities, and day care facilities in order to exercise sustainable working environment and increase employee's productivity. The result of this study could also be used as reference for further research. However, bear in minds that this research only used one company as sample. Therefore, further research should add another company in the same industry or in different industry in Indonesia to enrich the result of this study.