Work stress is an important workplace issue that may influence employees’ psychological conditions, performance, and productivity. Previous studies have examined the relationship between work stress and employee performance, as well as strategies for managing workplace stress. However, findings remain inconsistent regarding the direction and significance of this relationship and the effectiveness of different stress management approaches. This systematic literature review aims to examine the relationship between work stress and employee performance, identify stress management strategies applied to employees, and analyze their contributions to employee performance and productivity. The study employed a systematic literature review through article identification, screening, and selection based on predetermined inclusion and exclusion criteria. Fourteen eligible articles published between 2016 and 2026 were analyzed narratively to identify patterns across the findings. The results indicate that the relationship between work stress and employee performance varies in direction and magnitude, with studies reporting significant, negative, and non-significant associations. Identified stress management strategies include individual approaches, such as relaxation, adequate rest, social support, and mindfulness, alongside organizational measures, including communication, employee recognition, training, counseling, work flexibility, and a conducive work environment. Stress management was also associated with employee performance and productivity, either directly or through psychological factors and working conditions, such as job satisfaction. These findings suggest that stress management can support favorable working conditions and employee performance. However, its outcomes may differ depending on individual characteristics and organizational factors, highlighting the importance of implementing stress management strategies that address employees’ needs and workplace conditions.