<![CDATA[This study aims to examine the effect of psychological capital on psychological well-being, with psychological empowerment serving as a mediating variable, among employees of PT Telkom Regional I Medan. The importance of this research is grounded in the increasing demands of digital transformation within state-owned enterprises (BUMN), which have significant implications for employees’ psychological well-being. This study employed a quantitative research design, involving a sample comprising all 264 employees of PT Telkom Regional I Medan. A total sampling technique was applied. Data were collected using the Psychological Well-Being Scale (PWB), the Psychological Capital Questionnaire (PCQ-24), and the Psychological Empowerment Questionnaire (PEQ). The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with the assistance of SmartPLS 4.0 software, with job level included as a control variable. The findings indicate that psychological capital has a positive and significant effect on psychological empowerment (β = 0.750; p < 0.001) and on psychological well-being (β = 0.409; p < 0.001). Furthermore, psychological empowerment has a positive and significant effect on psychological well-being (β = 0.442; p < 0.001). The results also reveal that psychological empowerment partially mediates the relationship between psychological capital and psychological well-being (β = 0.331; p < 0.001). These findings are consistent across all job levels and highlight the importance of organizational interventions aimed at strengthening psychological capital while fostering a psychologically empowering work environment.]]>
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