The Relationship Between Organizational Justice and Employee Engagement: The Mediating Role of Psychological Capital in The Egyptian Banking Sector

Objective: In an era of rapid technological advancement and automation, organizations face increasing turbulence where human focus and purpose are under threat. Constant distractions and stress make it difficult for employees to be fully engaged—physically, emotionally, and intellectually. Organizations now recognize that their people are their primary sustainable competitive advantage. This study examines how perceptions of Organizational Justice—fair distribution of rewards, transparent processes, and respectful treatment—influence Employee Engagement and clarifies the mediating role of Psychological Capital (hope, efficacy, resilience, and optimism).Design/Methodology/Approach: A quantitative survey was conducted with 380 white-collar employees in Egypt’s banking sector. Validated scales measured Organizational Justice, Psychological Capital, and Employee Engagement. Structural equation modelling (SEM) tested the direct and mediating effects within this context.Results: The results show that Distributive Justice is the strongest positive predictor of Employee Engagement, reflecting the impact of Egypt’s economic conditions and power-distant culture. Procedural and Informational Justice also have positive effects, while Interpersonal Justice shows a weaker—but still positive—impact, suggesting respectful interaction is viewed as a basic standard. The findings highlight a dual role of Organizational Justice: directly boosting engagement and indirectly enhancing Psychological Capital, which, in turn, sustains engagement over time. Combined, these effects explain more than 50% of the variance in Employee Engagement.Practical Implications: These insights emphasize the need for organizations to design and communicate fair policies and practices that nurture employees’ psychological strengths and commitment in demanding rapidly changing work environments.