Impact of Compensation Level Practices and Training and Development on Job Satisfaction and Job Performance in Banking Sector of Pakistan
Abstract
This study performed an investigation on compensation and training that affects employee performance, with attention to the mediating role of job satisfaction in the banking industry of Rawalpindi and Islamabad, Pakistan. Self-consistency theory being considered, the study is underpinned by the dynamics that prevail between compensation and training and their effects on job satisfaction and subsequently upon job performance. The use of the quantitative survey method applied structured questionnaires to 256 employees, who returned them at a response rate of 74.85%. Compensation level practices and training and development positively influence job satisfaction. Indeed, it significantly mediates between two variables and job performance; but, compensation level practices and training and development boost job satisfaction, which enhances job performance. And job satisfaction completely mediates the relationship between compensation and performance, mediation is also confirmed with training and development practices. The results suggest that organizations should concentrate on the employee satisfaction through adequate compensations besides effective training programs that will cause improved performance outcomes. Adding on to literature, this research will contribute the knowledge gaps regarding the interplay of these factors within a developing country context and could have policy implications for decision-makers, HR professionals, and further researchers. Practical implications indicate that organizations must have supportive work environment and continually engage in revisiting training initiatives to meet employee needs to drive superior organizational performance. Future studies are recommended to consider further variables which may have a relation with employees' job performance and extend the dynamics of job satisfaction.
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