Work Environment and Engagement Effects on Employee Performance: The Mediating Role of Mental Health

This study analyzes the influence of the work environment and employee engagement on job performance, while also testing the mediating role of mental health in this relationship. The context is set in Ho Chi Minh City – a dynamic economic center with increasing work pressure, requiring organizations to understand the factors affecting labor performance. Quantitative methods are used, with data collected from surveys of office employees in Ho Chi Minh City. Data analysis is conducted using SPSS and the PLS-SEM linear structural model to test the direct and indirect relationships between variables. The results show that a positive work environment and high levels of engagement have a positive impact on job performance. In particular, mental health plays a significant mediating role, helping to explain the mechanism through which the work environment and engagement affect performance. The study affirms the importance of building a supportive work environment and promoting engagement within organizations as foundational factors to improve performance. Mental health is identified as a key bridge, playing a mediating role in the relationship between organizational factors and employee work efficiency. Therefore, organizations need to pay more attention to mental health support policies as part of a sustainable human resource development strategy.