The provision of supportive leadership and equitable compensation is widely regarded as essential for optimizing employee productivity. This research examines the motivational factors that lead to maintaining workers performance in a stressful working environment by achieving employee satisfaction levels. This research uses the path-goal theory that describes a positive supervisor’s qualities as crucial to deal with workers. Data were collected through 400 questionnaires distributed to middle-level managers and their subordinates in private companies in Pakistan. The PLS-SEM technique was employed to execute comprehensive results that show a stressful environment that directly hits employee performance; the results are sufficient and have proven the relationships between variables. The current body of literature provides limited insight into these connections, resulting in a void that this investigation has filled. The findings of the study can be utilized to enhance working conditions for improved employee performance, thereby resulting in increased productivity within an organization.