Name:

Mubashir Hassan Khan

Sap ID:
20441
Assignment:
Business Research Method
Research Topic:
Impact of Job security and Incentives on Job Satisfaction
Of Employees in Banking Sector Of Pakistan
Submitted To:
Sir Meher Nawaz

Riphah School Of Leadership

 Impact Of Job Security And Incentives On Job
Satisfaction Of Employees In Banking Sector Of
Pakistan

Mubashir Hassan Khan

Student, Riphah School Of Leadership
Riphah International University, Islamabad-46000, Pakistan
E-mail: Mubashirhassan.hassan@gmail.com

Abstract
Purpose: The main purpose of this study is to check
relationship between job security, incentives and job satisfaction
of employees in banking sector of Pakistan.
Method: A structured questionnaire survey conducted to collect
data from --------- employees of 4 private and 2 public sector
banks.
Findings: Results identified that employees of private sector
banks were more satisfied with incentives as compared to Public
sector banks while employees of Public sector banks were more
satisfied with job security as compared to Private sector banks.
Limitations: This model has not been tested in other cities of
Pakistan except Rawalpindi.

Keywords: Job satisfaction, Job security, Incentives, Public

sector banks, Private sector banks
Introduction:
Theme 1. The basic purpose of the human resource and labor
management is to enhance the confidence or to improve the
employee’s attitude towards job in a well manner. From many
decades it is important area of research and many researchers
investigate the association among job satisfaction and its
affecting aspects. The significance of job satisfaction on a
variety of organizational variables has been studied by various
researchers in the past[1].
Particularly we know that dissatisfaction lead employees toward
job turnover. That’s why taking into account job satisfaction of
employee and its affecting factors have significant value for any
institution or concern to stay alive and prosper[2].
The factors like incentives and rewards are the most preferred
factors for employee motivation programs (Danish, R, Q., and
Usman, A, 2010).
Job security is also an important variable that directly affects
employee organizational satisfaction and level of his
commitment. If an employee is sure that he will not be kicked
out of the organization any time sooner then he will definitely
work harder. In fact, he will try to reciprocate by giving more
input to the organization and it will also increase the level of his
satisfaction [3].
Theme 2. Researchers argue that when employees are motivated
to perform by offering them good incentives in terms of salary
etc., then the performance of the organization ultimately
increases [4].
Rewards and compensation has known to have a positive impact
not only on employee satisfaction, but also on organizational
performance [7].

Employees want financial security from their organization and if

an organization fails to provide this then it can lose its human
resource. The majority of the business corporations these days
are giving employee‟s part in the shares. This is just one way of
increasing job satisfaction and job security (Imran, R., Majeed,
M., and Ayub, A, 2015).
According to the current literature, the best way to increase
motivation and job satisfaction among employees, including top
management is to determine the salary and wage rate solely on
the basis of long term productivity of the organization [5]-[6].
Employees can work properly only if they are committed, loyal
and sincere towards the organization and this is only possible if
they are satisfied with the organization, its decisions, their salary
packages and other similar factors (Imran, R., Majeed, M., and
Ayub, A, 2015).
A large number of researchers have studied different aspects of
organizational justice and most of them have found out that if an
organization fails to provide job security to its employees
whether they are on contract or permanent member, then the
level of motivation and organizational commitment in them
decreases and both these things directly affect their job
performance [8].
Theme 3. As per my best knowledge, Incentives and Job
security have not been studied collectively with job satisfaction
of banking sector employees in Pakistani context.
Theme 4. Job Satisfaction is among the most critical aspects
that influence the performance of an individual. In Pakistan’s
banking sector, which is one of the fastest growing sectors in the
economy, there seems to be a growing dissatisfaction among
employees after the sector was privatized in 1990s. The trend is
reflected through huge disparity between corporate level and
branch level employees (Qureshi, M, N., and Khalid, K, 2015).
Job security is also an important variable that directly affects
employee organizational satisfaction and level of his
commitment.
Giving incentives to your employees not only motivates them to
do their work, but it can also motivate them to stay longer at the
business[9].
Theme 5. The purpose of this study is to investigate the
relationship of incentives and job security with job satisfaction
of employees in banking sector in Pakistan. There is a strong
need to study this framework in Pakistan as very less research
has been done on this topic. Pakistan is a developing country;
there is a strong need to study the factors like incentives and job
security that affect employees satisfaction level.

Research Model

IV DV
Incentives
Job
Satisfaction

Job Security
References

[1] Bartel, Anne P. 1981. "Race Differences in Job Satisfaction: A Reappraisal,"

Journal of Human Resources 16: 295 – 303.
[2] Bellemare, Charles and Bruce S. Shearer. 2006. “Sorting, Incentives and Risk
Preferences: Evidence from a Field Experiment.” IZA Discussion Paper No. 2227,
Bonn.
[3] R. G. Valletta, “Declining job security,” Journal of Labor Economics, vol. 17,
no. S4, pp. S170-S197, 1999.
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methods and academic performance,” British Journal of Educational Psychology,
vol. 40, no. 2, pp. 132-143, 1970.
[5] A. T. Coughlan and R. M. Schmidt, “Executive compensation, management
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[6] M. C. Jensen and K. J. Murphy, “Performance pay and top-management
incentives,” Journal of Political Economy, pp. 225-264, 1990.
[7] A. S. Tsui, J. L. Pearce, L. W. Porter, and A. M. Tripoli, “Alternative
approaches to the employee-organization relationship: does investment in
employees pay off?” Academy of Management Journal, vol. 40, no. 5, pp. 1089-
1121, 1997.
[8] Z. Rosenblatt, I. Talmud, and A. Ruvio, “A gender-based framework of the
experience of job insecurity and its effects on work attitudes,” European Journal of
Work and Organizational Psychology, vol. 8, no. 2, pp. 197-217, 1999.
[9] https://fmpglobal.com/blog/why-are-incentives-so-important-for-your-staff/
#:~:text=By%20offering%20something%20they%20can,have%20something%20to
%20work%20towards.&text=Giving%20incentives%20to%20your
%20employees,stay%20longer%20at%20the%20business.