The Influence of Work Stress and Work Environment on Employee Performance at the UPT Balai Yasa Yogyakarta Through Work Motivation as a Mediation Variable

This study examines the effects of job stress and the work environment on employee performance, both directly and indirectly through work motivation as a mediating variable, at UPT Balai Yasa Yogyakarta. A quantitative approach with an explanatory design was employed, and the study was conducted in June 2025. The population consisted of 260 employees from various work units, with a sample of 158 respondents selected using proportional random sampling. Data were collected through a closed-ended Likert-scale questionnaire and tested for validity and reliability using convergent validity and composite reliability with SmartPLS 3.0 software. Data analysis was carried out using the Structural Equation Modeling–Partial Least Squares (SEM-PLS) technique, which included outer model testing, inner model testing, and path analysis. The findings indicate that job stress has a positive but insignificant effect on employee performance. In contrast, the work environment has a positive and significant effect on employee performance. Job stress also shows a negative and insignificant effect on work motivation, whereas the work environment has a positive and highly significant effect on work motivation. Furthermore, work motivation has a positive and significant effect on employee performance. Regarding the mediating role, work motivation does not significantly mediate the relationship between job stress and employee performance. However, work motivation significantly and positively mediates the relationship between the work environment and employee performance. Based on these results, the study recommends that organizations place greater emphasis on improving the work environment as a strategic approach to enhancing employee motivation and performance.