The Effect of Occupational Stress and Psychological Contract on Work Engagement through Psychological Well-Being During the COVID-19 Pandemic

Abstract

Psychological well-being is a prerequisite for work engagement through the expression of physical, cognitive, and emotional resources. This refers to the state of happiness in work assignments. The purpose of this study was to analyze the effect of occupational stress and psychological contract on work engagement through psychological well-being as an intervening variable. The sample of this study consisted of 33 employees from a population of 33 employees of KCP Bank Jateng Pasar Johar, using a saturated sampling method. Data analysis was conducted using multiple linear regression models with two models and multiple testing. The results of the first model showed that occupational stress has a statistically significant negative effect on psychological well-being, while psychological contract has a statistically significant positive effect on psychological well-being. The results of the second model showed that psychological well-being has a positive and significant effect on work engagement, occupational stress has a negative and significant effect on work engagement, and psychological contract has a positive and significant effect on work engagement. The results also indicate that occupational stress has an indirect effect on work engagement through psychological well-being as an intervening variable, and psychological contract also has an indirect effect on work engagement through psychological well-being as an intervening variable.