When High Engagement Masks Workplace Toxicity: The Moderating Role of Empathetic Leadership

Abstract

Background: This study introduces the concept of false positive engagement. Objective: This study examines the relationship between toxic workplace environment and employee engagement, as well as the buffering role of empathetic leadership in a high-risk state-owned energy construction sector in Indonesia. Despite increasing aggregate employee engagement scores, several engagement drivers such as work-life balance, communication, and recognition showed declining trends, indicating a potential false positive engagement phenomenon. Methods: Using a quantitative approach, data were collected from 181 employees of PT XYZ through an online questionnaire survey. The study employed Partial Least Squares-Structural Equation Modeling (PLS-SEM) to test the proposed hypotheses and moderation model. Results: The findings reveal that toxic workplace environment significantly reduces employee engagement (β = -0.195; p = 0.001). Furthermore, empathetic leadership significantly weakens the negative effect of toxic workplace conditions on employee engagement (β = -0.122; p = 0.038). Conclusion: The study contributes to the organizational behavior and leadership literature by introducing the concept of false positive engagement and highlighting the importance of empathetic leadership as a psychological buffering mechanism in high-pressure project-based organizations. Practically, the findings suggest that organizations should not rely solely on aggregate engagement indices when evaluating workforce well-being and organizational health.