This research examines the effect of behavioral stress on employees’ performance and innovativeness in the higher education Industry of Pakistan. This involves forces put on the employees from personal or organizational factors which place psychological and emotional strains on them. In HEIs, these pressures are further compounded by workload, management pressure and expectations, role clarity and identity confusion, and fast technological changes that characterize the sector that could impact on individual and contextual productivity. The proposed research also follows a mixed-methods approach aimed at identifying the correlation between behavioral stress with productivity and innovation of the employees. Using a questionnaire, quantitative data were obtained from academic as well as administrative staff drawn from different universities in Pakistan regarding their stress level, job performance, and innovation capability. More open-ended interviews were conducted to establish which of these causes of stress impinges on the employees’ performance of their creative roles and output. These findings revealed the negative relationship between behavioral stress and averagely poor productivity of the employees since the high levels of stress affected efficiency, job interest, and performance of the employees. Another area, which promote creativity, open-mindedness and freedom, failed as stressed workers said that they had lower probability to experiment or introduce new ideas. Other organizational characteristics like lack of support from managers, role ambiguity and also scarcity of resources compounded the stress level of the employees and thereby limiting their productivity and innovation. But the employees who had positive leadership styles and good organizational climate experienced less stress and worked better in terms of performance and innovation. Based on the findings of the study, it can be concluded that one of the constructs; behavior stress is a key factor that degrades both, productivity and innovation in higher education sector of Pakistan. To overcome this, institutions should come up with supportive policies that will enhance work life balance, communications and counseling services. Therefore, by dealing with stress organizers and self-organizers, higher education institutions can create the best working environment that will be healthy, innovative and productive.
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