The Role of Self-Efficacy and Employee Engagement in Improving Employee Performance: A Literature Review

Abstract

This research investigates how self-efficacy and employee engagement jointly influence employee performance through a systematic literature review of recent empirical research. The review addresses the central question of how psychological resources and behavioral involvement shape individual contributions to organizational outcomes. Self-efficacy is examined as a belief in one’s capability to perform tasks successfully, while employee engagement represents a positive work-related state characterized by vigor, dedication, and absorption. Using data drawn from peer-reviewed studies across sectors such as education, healthcare, aviation, and public administration, the analysis reveals consistent evidence that self-efficacy strengthens confidence, resilience, and adaptability, whereas engagement channels these qualities into sustained effort, motivation, and goal-directed behavior. The discussion highlights engagement as a key mediator that converts self-efficacy into measurable performance and identifies contextual factors—including work–life balance, organizational support, and social environments—that amplify these effects. Findings show that self-efficacy and engagement create a reinforcing cycle in which confidence drives involvement and involvement enhances results, ultimately improving task completion, productivity, and innovative work behavior across diverse organizational settings.