Home⇛Journal of Interdisciplinary Perspectives⇛vol. 4 no. 8 (2026)

Financial Well-Being and Work Engagement Enhancement Program for MFIs in Batangas, Philippines

Rosalie M. Cabagay | Amor A. Ilagan

Discipline: Finance

 

Abstract:

Microfinance institutions in Batangas operate in highly competitive environments, where employees under base-salary-plus-commission schemes often experience financial stress and income instability, which may affect work engagement, emotional exhaustion, and job performance. Despite the importance of these factors, limited studies have examined their combined influence among microfinance employees. This study investigated the relationships among financial stress, work engagement, emotional exhaustion, and job performance among employees of microfinance institutions in Batangas. Using a mixed-methods convergent design, quantitative data were collected from 226 employees across five cities through stratified random sampling and analyzed using descriptive statistics and Structural Equation Modeling (SEM), while qualitative data were gathered from six supervisors through Key Informant Interviews and analyzed thematically. Findings showed that employees demonstrated good job performance, particularly in administrative competence, although maintaining delinquency-free portfolios remained challenging due to clients' economic constraints. Employees also reported financial stress associated with emergency expenses and income instability, alongside high work engagement and moderate emotional exhaustion. Results indicated that work engagement significantly enhanced job performance, whereas emotional exhaustion weakened its positive effects. The study concludes that sustaining employee performance requires organizational strategies that promote engagement, strengthen financial well-being, and reduce emotional exhaustion. Based on these findings, a Financial Well-being and Work Engagement Enhancement Program is proposed that incorporates financial literacy training, emergency savings initiatives, stress management programs, employee wellness activities, and engagement-focused support mechanisms to improve employee resilience and organizational performance.



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