Measuring the Impact of Perceived Organization Support, Psychological Empowerment and Rewards on Employees' Satisfaction: Testing the Mediating Impact of Employee Engagement

Abstract

Banking industry is under sturdy pressure from the need to compete and respond to speedy changes in the market. Banks, moreover, must motivate their employees to keep their organization coincident with the challenges they face. For this, banks have to cater their employees with the factors that not only engage their employees in the work but also help in creating satisfied workforce. Therefore, the present study aims to investigate the effect of perceived organization support (POS), psychological empowerment (PE) and rewards on employee satisfaction through the mediation of employee engagement in five big banks of Pakistan. Data has been collected from the 200 employees of five big banks of Pakistan (HBL, UBL, ABL, MCB and NBP). SPSS 17 has been used for factor analysis, reliability, correlation and regression analysis. The results showed that employee engagement partially mediates the relationship between POS, PE and employee satisfaction and fully mediates the association between the rewards and satisfaction. Theoretical and managerial implications along with limitations and recommendations for future research have also been discussed in the paper.

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