Impact of Rewards on Employee Job Satisfaction in Nepalese Commercial Banks: A Comparative Study of NIBL and HBL

Abstract

The study focuses on to examine the impact of rewards on job satisfaction of employees of the Nepalese Banking sector. The study analyzes two rewards, i.e. intrinsic and extrinsic among banking employees that affects on their job satisfaction. Besides that, this study also aims to make the comparative study between Investment Bank and Himalayan Bank.

The study comprises descriptive, causal design and convenience sampling method. Closed-ended structured questionnaire with 43 statements in 5 point likert scale was used for the study. Questionnaire used were validated through cronbach’s alpha and ttest.

Sample population was employees working in middle and lower level; primary data has been collected by visiting different branches of two banks as well as through internet survey. The data collected from the survey has been analyzed using descriptive statistics as well as inferential statistics (mean, standard deviation, correlation and regression).

Two types of rewards, i.e., intrinsic and extrinsic have positive correlation with employee job satisfaction. Similarly, rewards enhance job satisfaction of employees. Besides that there is significant relationship between intrinsic rewards and job satisfaction in case of Investment Bank. There is no significant relationship between extrinsic rewards and job satisfaction. Likewise, in case of Himalayan Bank both the rewards, extrinsic and intrinsic have significant relationship with job satisfaction. In addition with that, study also concluded that intrinsic rewards influenced employees’ job satisfaction than that of extrinsic rewards. Extrinsic rewards importance differs due to organizational payment policies but intrinsic rewards are important on every working environment.

The study could contribute to future research works conducted on rewards and job satisfaction. Understanding of rewards and job satisfaction can make strategic plan to retain competent employees. The study is helpful for organization to attract, retain and motivate efficient employees through taking into account these variables as important. This study will help organization to create policies formulation and employees rewards package for employees job satisfaction.