6.Comparison of Job satisfaction between two major sectors in finance industry
Bankers in public & private sector in Sri Lanka
In the competitive banking industry, the success of the organization totally depends on the workforce. The level of job satisfaction of the employee implies the image of the employer and it leads to the accomplishment of the goals of the organization and may vary with the banking sector ; public versus private.
Source - Kumari, K.W.S.N., Jayasinghe, G.J.M.S.R., and Sampath, J.K.H. (2019), Factor Variation on Job Satisfaction of Banking Employees: A Comparative Study on Public and Private Banks.
(Link - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3496173)
Table 1 –
Frequency statistics of independent variables according to the sector independent test for variable
|
Variable |
Satisfaction rate (%) Public Sector |
Satisfaction rate (%) Private Sector |
|
|
|
|
|
Leave rules |
67.6 |
64.4 |
|
Working hours |
52.0 |
63.0 |
|
Work Load |
61.1 |
69.9 |
|
Realistic targets & deadlines |
48.1 |
52.1 |
|
Ability of utilizing skills |
68.8 |
60.3 |
|
Management systems |
74.0 |
64.4 |
|
Empowerment |
61.1 |
47.9 |
|
Job security |
57.2 |
63.0 |
|
Recognition & appreciation |
52.0 |
56.1 |
|
Possibility of growth |
14.3 |
52.0 |
|
Relationship with the staff |
68.8 |
71.2 |
|
Salary |
64.4 |
64.4 |
|
Fringe benefits |
70.1 |
45.2 |
|
Working pressure |
26.0 |
30.2 |
|
Work Life balance |
50.7 |
46.5 |
|
Working environment |
75.3 |
63.0 |
|
|
|
|
|
Overall job satisfaction |
58.5 |
49.4 |
Observations -
The analysis of frequency comparison implies that there is a difference between overall job satisfaction among public and private bankers. The satisfaction level was higher in public bank employees than private-sector employees
Table 2 –
Results of Ordinal logistic regression model significant coefficients
|
Variable |
Coefficient |
Relative risk ratio |
|
|
|
|
|
Public
sector |
|
|
|
|
|
|
|
Empowerment |
1.415 |
4.116 |
|
Job security |
0.939 |
2.557 |
|
Recognition & appreciation |
0.709 |
2.032 |
|
Relationship with the staff |
0.902 |
2.465 |
|
Work-life balance |
0.702 |
2.018 |
|
|
|
|
|
Private
sector |
|
|
|
|
|
|
|
The ability to utilize skills |
1.560 |
4.759 |
|
Possibility of growth |
1.372 |
3.943 |
|
Salary |
0.990 |
2.691 |
|
Work life balance |
1.890 |
6.619 |
|
Working
environment |
1.422 |
4.145 |
Observations -
Fitted ordinal logistic regression models, were confirmed that the significant impact factors were differed across the sector, although the work-life balance was in both models. It implies that the relevant authorities should be considered about these various factors along with the banking sector.
Conclusion -
The aim of the study is to examine the job satisfaction in important factors in public and private bank employees. According to the table 1 & 2 there is a significant different with job satisfaction and two sectors such as working hours, work load, management systems, possibility of growth & fringe benefits. Further result concludes that targets & deadlines ,Job security and recognition. There is no significant different in salary. Therefore this study suggests that the, distance wise the job satisfaction significantly different in bank employees in public and private sector.
According to your comparison, job satisfaction rates generate a 9.1% difference between the public and private sectors. according to your article public sector employee more satisfying than private. but why we didn't consider the customer satisfaction of these two parties. I believe the private sector keeps customer satisfaction on top. when a company drives to get a large margin of profit customer satisfaction and employee working performance be critical. when the private sector generating pressure to give better service, employee satisfaction be reduced.
ReplyDeleteThushara, Here my intention was to compare the satisfaction of employees in the finance sector & not addressed about customer satisfaction.
DeleteIn terms of customer satisfaction definitely they prefer to come to private banks not public sector banks since the satisfied customer service provided in private sector and the same affects the performance of particular banking sector as you mentioned.
Several dimensions in your comparison are quietly differ according to my view.
ReplyDeleteWhen we consider about the working pressure in banking sector there is a considerable variance in privet banks comparing to government banks. Why I am saying that in present most of the privet banks running through a target based culture. New to bank customers are the most significant segment in this scenario. It is not an easy target for the employees in privet sector comparing to the public sector. Not like in public sector, bankers in privet sector have to dedicate much to attract new customer and continue the relationship further. So I think to achieve these targets privet sector much to do more than government sector. Satisfactory levels difference should be more than above.
Another thing is salary. Other than one or two banks in privet sector there is a considerable salary difference within the privet and public bankers. Salary is not in a satisfactory level is one of the main reasons for increasing the staff retention in privet banking sector. I am not agreeing with the satisfactory levels in above data comparison regarding salary.
Not only that, I don’t think the job security in privet banks more stable than government banks. In current history of Sri lanka also we can see several privet banks had to close due to financial instabilities. But public sector will never faces to this kind of issues as it is under the government.
Useful article Susantha. But I’m not agree with the “Job security” satisfaction figure. As per the article, job security in public sector mention as 57.2%. The same rate in private sector mention as 63.0%. I think this can’t be happened.
ReplyDeleteThanks for your valued feedback.
DeleteOf course It should be taken in to consideration. This research has been carried out through 150 nos of bank employees in North Region in Sri Lanka. However this ratio can be changed when consider overall bankers in finance sector in Sri Lanka.
As per your article, public sector has a higher satisfaction rate than the private sector. That is mainly because of the public sector’s leave rules, working hours, work load and etc. In terms of job security wise, my personal opinion is public sector has more job security than the private sector. However, the figures show the other way around. Private sector has a competition in every industry. In order to gain a competitive advantage, private sector working tirelessly where public sector is more flexible. Both sectors advantages and advantages. I believe it is up to the employee to choose their sector to work.
ReplyDeleteObviously Sevindi
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ReplyDelete
ReplyDeleteas your comparisons public sector job satisfaction rate higher than private. In my opinion that is right. because private sector Salary, Work-life balance, Working environment issues and also, job security is lower than public sector.
This comment has been removed by the author.
ReplyDeleteIn my point of view, some of your statistics are wrong. According to my knowledge Job security in public sector banks is higher than in the private sector, Possibility of growth nowadays much better, but not the same as in private banks, Salary not the same as the private sector, Nowadays working pressure in the private sector is very high.
ReplyDeleteProof of my point I would like to share research conducted by the Faculty of Management Studies, Rajarata University of Sri Lanka.
Weerasinghe, IMS Faculty of Management Studies, Rajarata University of Sri Lanka, Mihintale, Sri Lanka E-mail: salindaweerasinghe@gmail.com, Senawirathna, CJ Faculty of Management Studies, Rajarata University of Sri Lanka, Mihintale, Sri Lanka E-mail: chiranthanijayani@gmail.com, Dedunu, HH Faculty of Management Studies, Rajarata University of Sri Lanka, Mihintale, Sri Lanka E-mail: dedunuharshani100@gmail.com, done research about Factors Affecting to Job Satisfaction of Banking Employees in Sri Lanka Special Reference Public and Private Banks.
This Study ensured the face and content validity of the questionnaire through the literature survey and confirmatory factor analysis is used to ensure the construct validity. According to the factor analysis, KMO values of all variables were greater than 0.5 and components extracted values also were above the threshold (0.7) level. That evidenced the convergent validity of the data set. The overall Cronbach Alpha of the test was 0.845 and all alpha values of respective variables also were greater than 0.7 indicating good reliability of the data set. The descriptive statistics stated that there are 98 Banking Executives, 110 Banking Assistants and 18 Clerical staffs in the sample, out of them 116 belong to government banks and 110 to private banks. The age analysis indicated that most of the employees belong to the age category of 19-30, the amount was 143. Only 19 respondents were above the age of 51 and the rest were in between 31-40 and 41-50 categories. All respondents had qualified General Certificate Examination (GCE) Advanced Level which is the university entrance exam in Sri Lanka. The sample included 86 graduates and 79 undergraduates 27 Banking Diploma holders, out of all 122 respondents were female and the rest were male.
(Data Tables can not add to the reply, I tried several times, formats didn't work properly and I remove it)
According to the research, government bank employees are highly satisfied with their job security
(Mean 4.2) and job recognition (Mean 4.6). In addition to that employees have a more positive response about their salary (3.75) and the works (Mean 3.6) which they engage in the banks. However, employees have a somewhat neutral view about their working conditions (Mean 3.3) and the possibility of growth (Mean 3.2) in the field. According to the descriptive statistics, private bank employees are highly satisfied with their job recognition (mean 4.0), the possibility of growth (Mean 3.8) and working conditions (Mean 3.8). And also, the respondents fairly satisfied with their salary (Mean 3.4) and their works (Mean 3.1). Not like government bank employees, the respondents of the private bank stated their dissatisfaction about the job security (Mean 2.7). All the respondents have a high level of satisfaction with their jobs.
Comparative Analysis of Job Satisfaction among Private and Public Banks, The study compared the level of job satisfaction between private and public banks and public bank sector job satisfaction much higher than the private banking sector.
References:
Weerasinghe, IMS (2017) Factors Affecting to Job Satisfaction of Banking Employees in Sri Lanka. [Research] Faculty of Management Studies, Rajarata University of Sri Lanka, Mihintale, Sri Lank.
Figures - uploaded by Weerasinghe, IMS Author content
I agreed with Madushani, when observe this comparison I noticed that two factors which I can't agree with. First one is job security because state banks provide more job security than private banks with the assurance of the government. And the other one is realistic targets and dead lines. As an employee of private banking sector I personally know how the yearly target is. Comparatively private bank employees are given bigger targets than public banks. Since there are some discrepancies with statics in the comparison. Really informative.
ReplyDeleteMadushani & Dhanushka ,Noted your feedback & discrepancies found.
DeleteThis research has been carried out through 150 no's of bank employees & overall job satisfaction in public sector is higher than private sector.
There could be discrepancies in the context due to research based on low nos of bankers .When consider overall bank employees in Sri Lanka Job security & target and deadline ratios might be changed.