<![CDATA[This study aims to analyze the effect of flexible working arrangements and work environment on employee performance through work engagement at the Surabaya State Property and Auction Service Office (KPKNL). This study was motivated by the implementation of flexible working arrangements in KPKNL Surabaya and the need to examine their relevance to employee performance in the public sector. Although employee performance at KPKNL Surabaya remains within the green performance category, achieving organizational targets is increasingly accompanied by rising demands and workloads, making employee performance an important issue to examine. The study employed a quantitative survey approach, with 58 employees selected through saturated sampling. Data were collected using structured questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4.0. The results indicate that flexible working arrangements have a positive and significant effect on employee performance and work engagement. Meanwhile, work environment has a negative and significant effect on employee performance but does not significantly affect work engagement. Work engagement does not significantly affect employee performance. Furthermore, work engagement does not significantly mediate the relationship between flexible working arrangements and employee performance, while it significantly mediates the relationship between work environment and employee performance. This study contributes to the understanding of flexible working arrangements in public sector organizations and provides practical implications for optimizing flexible working policies to support employee performance.]]>
