Abstract

Employee engagement and high work stress often become obstacles for MSMEs to produce good employee performance. One of the problems in human resources that often occur is a toxic workplace environment. The purpose of this study was to determine the effect of a toxic workplace environment on employee performance mediated by work stress and employee engagement among F&B MSMEs employees in Jakarta. This research uses quantitative research methods. Questionnaires were distributed to F&B MSMEs employees in Jakarta and the data obtained was processed using SmartPLS. This study has a respondent of 400 respondents. The results showed that there was a positive effect between a toxic workplace environment on work stress, a negative effect between a toxic workplace environment on employee engagement, a negative effect between work stress and employee performance, a positive effect between employee engagement and employee performance, a non-significant negative effect of a toxic workplace environment on employee performance, there is a significant negative effect of a toxic workplace environment mediated by work stress on employee performance, and there is a significant negative effect of a toxic workplace environment mediated by employee engagement on employee performance.

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