Determinants of Job Satisfaction in Nepalese Commercial Banks

Abstract

The banking industry seeks only those employees who are intact with the job satisfaction still, job satisfaction is the major factor that pulls everyone in the industry and never fails to be an issue that attracts employee motivation, performance, and retention. The main objective of this study is to identify the determinants of job satisfaction of Nepalese commercial banks.

The data were collected by means of a structured questionnaire from 105 employees currently working in all 20 Nepalese commercial banks. SPSS was used for the descriptive statistics and for the Pearson correlation analysis to analyse the relationship between HR practices and job satisfaction. The results indicated that human resource practices have a positive association with overall job satisfaction and employee retention. Fair and transparent promotion practices were found to significantly enhance job satisfaction, which in turn contributes to higher employee motivation and improved performance. Training and development, along with work–life balance, also had a notable impact on employee satisfaction, underscoring the importance of continuous skill enhancement and maintaining a healthy balance between professional and personal life. Furthermore, reward systems, including recognition and non-monetary incentives, were positively associated with overall job satisfaction. However, perceived inequities in reward distribution were found to have significant negative implications, potentially undermining employee morale and retention

This study has broad implications for equitable design of performance appraisals, as well as targeted training programs, equitable reward systems, and even employee well-being initiatives. Such measures are a must for increasing employee engagement and curbing employee turnover. Future research can explore the context and its dynamics in making HR practices effective in the banking sector of Nepal.