Contributory Factors in Employee Satisfaction: an Empirical Investigation of Banking Industry

Research Background: Banking industry has sufficiently undergone rapid changes in India and with the entry of foreign players and strong private players the face of industry was redefined completely. In wake of these changes, the changes in the fundamentals and structure of banking industry majorly led by competition and technology of the banking industry also affected the role of internal customers i.e. the employees of the industry. Besides several other changes took place in the industry which led to huge churning of employees in the industry thus the need for caring for the satisfaction of employees also became important. There are several antecedents of employee satisfaction found in various studies conducted in different areas of different industries and sectors. The critical examination done on those antecedents have concluded on certain factors to be of enormous significance to assess and evaluate employee satisfaction in banks. The study entails to empirically establish the causal factors in determining the satisfaction of the bank employees. It not only aims to establish the contributory factors but also assess the current level of employee satisfaction in the banks.
Methodology: The study factor analyzed the responses of 300 bank employees from public and private sector banks in India. Multiple Regression was applied to determine the major contributors to employee satisfaction.
Aims: To determine the causal factors in employee satisfaction and also to determine which factors are major contributors to employee satisfaction of the Indian banks.
Findings: The study found that motivators, organisational support, reward, career growth and job enrichment are the main factors contributing to employee satisfaction in Indian banks. The study further empirically establishes that organisational support is the major contributor to employee satisfaction followed by reward and job enrichment.
Conclusion: The current study empirically establishes that five factors bring about the satisfaction or dissatisfaction of the employees, specifically in the banking industry. These factors are motivators, organisational support, reward, career growth, and job enrichment. The paper further examines the level of employee satisfaction with respect to these causal factors. It is established that employees are only somewhat satisfied with the motivators, organisational support, reward, and career growth. The job enrichment is the only factor spotted to be contributing to the satisfaction of the employees, the parameter on which employees are more than satisfied. Further the study concludes that organisational support is the most important contributor to employee satisfaction followed by reward and job enrichment. motivators and career growth are insignificant in determining employee satisfaction in the banks.