WORKPLACE PSYCHOLOGY AND PROFITABILITY: THE ROLE OF ENGAGEMENT, SATISFACTION, AND JUSTICE IN SINDH’S BANKING SECTOR

Abstract

Study Objective: This study aims to determine the financial effects of employee engagement, job satisfaction, and fostering the sense of organizational justice in Sindh’s private banking sector. It looks into how these factors translate into revenue, cost-effectiveness, and profits through improved productivity and reduced employee turnover, respectively. These direct financial impacts were assessed using SEM techniques with data from 250 employees, and findings indicated a positive relationship between job satisfaction with financial performance, with engagement as the strongest driver for sustainable financial performance. Data Collection: Primary data was obtained by a structured questionnaire from employees in the private banking sector in the Hyderabad District. Structured literature reviews and banking reports were used to collect secondary data in the course of the study to complement the financial data and analysis.  Data analysis: This included the quantitative approach using descriptive statistics, exploration, and Structural Equation Modeling with Partial Least Squares to perform hypothesis testing and validity assessment. This enabled the evaluation of how employees and job satisfaction are related to the financial performance of the institution in terms of profitability and cost efficiency.  Sample Size: The current study managed to obtain a sample of 250 respondents from 8000 respondents. The target population consisted of employees of the banking sector of Hyderabad, Sindh. The prolonged duration of the study enabled the researchers to adequately generalize the findings even within the region.  Results: Three business profitability hypotheses were explored, testing the proposition that financial outcomes of employees’ job satisfaction and engagement have a positive effect on the profitability of the banking sector. Out of these tests, six were right. Only one of the hypotheses was disproven: Organizational Justice to engagement was found to be detrimental to engagement. In conclusion, it is stated that job satisfaction and employee engagement have many positive effects on the financial performance of the organization, in particular, engagement increases profitability and cost efficiency directly.  Findings: Results of the study indicate that banking sector employees' satisfaction with the profession itself contributed towards increasing the quality of the financial services, making the sector financially sustainable. Findings indicate satisfaction at work has maintained staff, thus fostering more innovative strategies to shift performance for better profit abilities. These findings indicate the possibility of customized solutions to boost employee engagement, job satisfaction, and ultimately, better financial performance in the private banking industry of Sindh.  

Keywords: Job Satisfaction, Financial Performance, Private Banking Sector, Employee Engagement, Profitability, Cost Efficiency.