Effects of Work Life Balance and Pay Satisfaction on Organizational Loyalty:

Work and life balance has been identified as one of the most important factors that contributes to the competitive advantage of employees and organization. This research aims to emphasize the effect of work life balance (WLB) and Pay satisfaction on Organizational loyalty by comparing small-medium sized enterprises and large companies. Based on a social exchange theory, this research traced the interactions among work life balance issues, employees’ behavior and reaction to pay. Especially, work life balance was researched by separating three dimensions of family, leisure, and personal development. Sample of 171 in large companies, 120 in small-medium sized enterprises in South Korea were collected. By conducting independent two sample t-test, the research found that the perception of WLB in large companies is higher than small-medium sized enterprises. Secondly, multiple linear regression analysis was conducted to present the relationship between variables. Employees who perceived work-family balance and work-leisure balance are loyal to organization in small-medium sized enterprises; employees who perceived work-leisure balance, work-personal development balance are loyal to organization in larger companies. Lastly, the effect of pay satisfaction on organizational loyalty was shown only in large companies. This research can contribute work life balance research because most previous researches were focused on work life balance in only large companies.