Enhancing Safety Performance Through Psychological Empowerment, Employee Engagement, and Safety Climate

Workplace accidents are often underestimated, yet they significantly affect an organization's reputation, costs, productivity, and employee retention. This study investigates the role of employee engagement and its dimensions in influencing psychological empowerment, safety climate, and safety performance. Data were collected via questionnaires from 400 operator-level employees across seven Malaysian electrical and electronics manufacturing companies. Structural Equation Modeling (SEM) using Smart-PLS was used to examine the relationships. The results indicate that employee engagement significantly mediates the relationship between safety climate and psychological empowerment, contributing to improved safety performance. These findings underscore the importance of fostering employee engagement and its dimensions to enhance organizational safety and overall performance. Furthermore, the outcomes from this study yielded a model encompassing safety climate, psychological empowerment, employee engagement and safety performance. This study has demonstrated that safety in the workplace embraces the views JEL Codes: Keywords: Safety climate, psychological empowerment, employee engagement, SmartPLS.