The Impact of Work Overload and Work Environment on Employee Productivity: The Mediating Role of Work Stress

Abstract

This study aims to investigate the impact of work overload and work environment on employee productivity, with work stress serving as a mediating variable. The research was conducted at PT Bank Negara Indonesia (Persero) Tbk, Brawijaya Branch Office, focusing on how psychological and environmental factors influence performance in the banking sector. Data were collected through a structured questionnaire distributed to a saturated sample of 61 permanent employees (census technique). The analysis was performed using Structural Equation Modeling (SEM) via Partial Least Squares (SmartPLS) to test both direct and indirect relationships within the conceptual model. The results reveal that while work overload has a significant negative impact on productivity, a conducive work environment significantly enhances employee output. Furthermore, work stress was found to be a critical mediator; increased workload escalates stress levels, which in turn reduces productivity. Conversely, an optimized work environment helps mitigate stress, thereby sustaining performance. These findings suggest that managing task distribution and improving office facilities are essential strategies for BNI Brawijaya to maintain high operational efficiency through stress reduction.