The Impact of HR Practices on Employees’ Performance in the Banking Sector: The Mediating Role of Job Satisfaction
Abstract
The present study analyzes five HR practices in the banking sector of Pakistan (training and development, compensation and benefits, work environment, career growth, leadership style) with employee performance, keeping job satisfaction as a mediating variable. The researcher has followed a positivist philosophy approach and collected quantitative data through surveys from 382 respondents who are employees of the top five commercial banks by using established Likert scale items. Both the measurement model and structural model were assessed in SmartPLS through reliability & validity assessment accompanied by bootstrapping results. (T&D),Compensation & benefits (W.E.),(L.S) have significant effects on enhancing employee performance, while(C.G)has no direct effect on employee performance. Job Satisfaction significantly mediates between(T&D), compensation,(W.E),(C.G), and their relation to employee performance, i.e.partial mediation in the first three cases, whereas full mediation is found only in the case of(C.G)L.Sis is not mediated via Job satisfaction. The findings recommend that banks make investments in training based on skills, rewards perceived as fair, a supportive environment, credible career paths, and satisfaction monitoring, while managers focus on emphasizing their day-to-day leadership behavior. This study presents an integrated HRMP model for the relatively unexplored context of the banking sector in Pakistan.
Keywords: Career growth, Employee performance, Human resource practices, Job satisfaction, Leadership style, Training and development, Work environment.
