Increasingly intense business competition requires distribution companies to maintain optimal employee performance. However, high operational demands, heavy workloads, and less supportive working conditions may reduce employee engagement and employee performance. Therefore, this study analyzes the effect of work-life balance and work environment on employee performance, with employee engagement as a mediating variable among distribution company employees in Batam. Using a quantitative approach and survey method via questionnaires, data from 300 employees were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results show that WLB and WE have positive and significant effects on both EE and EP. Furthermore, EE positively affects EP and mediates the relationships of WLB and WE on EP. Companies are recommended to strengthen work-life balance policies and workplace comfort to boost engagement and performance. Future research should expand the scope and incorporate additional variables.
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