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Individuals may experience internal identity asymmetry when they feel misidentified and believe their colleagues do not recognize their work-related identities. This research examines the impact of internal identity asymmetry on their behavior and emotional outcomes at the workplace in Pakistan. Data was collected through a survey and received responses from 393 participants at different levels of management in various sectors of Pakistan. A partial least square-based structural equation modeling technique has been used to validate the proposed research model and develop hypotheses. The findings indicate that psychological distress has a positive indirect effect on both outcomes, such as individual work performance and well-being during personal and professional base asymmetries time. The result indicates that employees face psychological distress while experiencing internal identity asymmetries, which may decrease the performance and well-being of the employees. Findings highlight the importance of coping strategies in improving the performance and well-being of employees. Managers can be supportive in maintaining a positive workplace environment where individuals can have a more accurate self-perception and a better understanding of their colleagues' perspectives. This, in turn, enables them to adopt appropriate coping strategies to enhance both performance and well-being.