Mediating Effect of Employee Engagement on the Relationship Between Working Conditions and Performance in UAE Construction

Abstract

Amid growing concerns over labour productivity and workforce well-being in the construction sector, understanding how workplace conditions translate into performance outcomes has become critical. This study investigates how working conditions influence employee performance in the UAE construction sector, with employee engagement examined as a mediating variable. A quantitative approach was employed, collecting data from 368 migrant construction workers, and the analysis was conducted using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that working conditions have a significant direct effect on both employee engagement (β = 0.712, p < 0.001) and employee performance (β = 0.470, p < 0.001). Employee engagement also significantly influences performance (β = 0.441, p < 0.001) and mediates the relationship between working conditions and performance (indirect effect β = 0.314, p < 0.001). The presence of both significant direct and indirect effects confirms that employee engagement exerts a partial mediation effect, indicating that while engagement enhances the impact of working conditions on performance, working conditions alone still directly influence performance. The model explains 71.1% of the variance in employee performance, demonstrating high explanatory power. These results suggest that construction firms must address multiple dimensions of working conditions which are environmental, physical, organizational, and psychological to foster engagement and improve overall workforce outcomes.