Effects of motivational factors towards employee engagement and employee performance in selected Malaysian government linked companies

High employee performance is vital to the long-term success of government-linked companies (GLCs) in an increasingly dynamic environment. However, many GLCs consistently face challenges in fostering sustained employee motivation. This study examines the impact of key motivational factors (i.e., work environment, reward and recognition, promotional opportunities, organizational support, and ethical leadership) on employee performance in selected Malaysian GLCs. It also examines the mediating role of employee engagement in these relationships. A quantitative research approach was employed, utilizing structured surveys administered to 800 employees across selected government-linked companies (GLCs) within a cross-sectional design. Data were analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) to test the proposed hypotheses. Additionally, demographic characteristics were analyzed to identify potential variations in motivational preferences. The findings reveal that work environment, reward and recognition, and ethical leadership strongly impact employee performance in selected Malaysian GLCs. Among these, the work environment is the most essential factor, highlighting the need for a supportive and positive workplace. Reward, recognition, and ethical leadership also improve performance by building fairness, appreciation, and trust. Moreover, employee engagement plays a key mediating role in these relationships, indicating that organizational practices are most effective when they strengthen employees’ connection and commitment to their work. Human resource management practitioners and policymakers should develop and implement evidence-based motivational strategies and comprehensive employee engagement initiatives to enhance productivity, job satisfaction, and overall organizational performance. Moreover, attention must be given to the diverse motivational needs of different demographic groups to promote equity, inclusivity, and sustainable performance outcomes within Malaysian GLCs. By adapting Herzberg’s Two-Factor Theory, this study contributes empirically by identifying key motivators among employees in GLCs and their influence on employee performance within this organizational context.