This study aims to analyze the effects of challenge stressors and hindrance stressors on employee performance, with work engagement as a mediating variable among employees of PT Wijaya Karya Bangunan Gedung Tbk. The construction industry is characterized by high work demands, job complexity, time pressure, and various obstacles in work implementation. This study employed a quantitative approach using primary data collected through questionnaires distributed to 151 employees of PT Wijaya Karya Bangunan Gedung Tbk. Data were analyzed using multiple regression analysis and path analysis, while the mediation effects were tested using the Sobel Test. The results indicate that challenge stressors have a positive and significant effect on work engagement and employee performance, whereas hindrance stressors have a negative and significant effect on work engagement and employee performance. Furthermore, work engagement has a positive and significant effect on employee performance. The mediation analysis shows that work engagement mediates the effect of challenge stressors on employee performance as well as the effect of hindrance stressors on employee performance. These findings indicate that job demands perceived as challenges can enhance employee engagement and performance, whereas job demands perceived as hindrances can reduce employee engagement and performance. This study reinforces the application of Job Demands–Resources Theory and the Challenge–Hindrance Stressor Framework in explaining the relationships among job demands, work engagement, and employee performance in the construction industry.
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