Role of Employee’s Job Satisfaction on Organization’s Performance in Banking Industry in Nigeria (Essay Sample)

Role of Employee’s Job Satisfaction on Organization’s Performance in Banking Industry in Nigeria
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Role of Employee’s Job Satisfaction on Organization’s Performance in Banking Industry in Nigeria
The banking sector in Nigeria is regarded as the second-largest industry in the African continent. Nigeria's banking industry has assets that total over 65. Forty-eight trillion nairas as of June 2022 (Nwokoji, 2022). However, the industry encountered economic instability during the economic recession in the period of 2016. To rectify this problem, the industry had to adopt restructuring policies that led to the merging and acquisitions of its banks. Despite these efforts, the banks were still not able to satisfy the required minimum capital base and regulatory requirements (Yusuf & Raimi, 2019). Moreover, the banks continued to downsize due to the reconstruction processes, which resulted in the retrenchment of over 45,000 banking employees (Bolarinwa et al., 2019). In addition, the revival and performance of Nigeria's banking sector were significantly affected by the drop in oil prices since the gas and oil companies owed a quarter of the industry's lending (Osuma et al., 2019). For this reason, a majority of industries were left in disarray because of the currency crisis.
Following this, mass employee cutbacks and downsizing resurged in the banking sector as a majority of the banks were trying to find ways to reduce the costs of running the firms. The few workers that survived the retrenchment were put through salary cuts (Abubakar et al., 2020). Moreover, instead of using permanent employees, the banks opted for casual and contractual workers with the aim of reducing costs. For this reason, the performance of banks in the country is severely impacted, and they would need to invest in the human resource section to enhance their competitiveness. One way to accomplish this is by ensuring job satisfaction among banking employees, which would help retain and attract talented employees to ensure improved organizational performance in the industry.
Job Satisfaction and Employee Turnover Rates
Job satisfaction is a vital feature for companies that are looking to enhance their productivity. The perceptions of job satisfaction denote peoples' general attitudes concerning their job or workplace (Oumwense, 2018). The aspect signifies a positive and pleasurable state of emotion ensuing from an individual's job experience (Abosede & Obianuju, 2018). Moreover, job satisfaction is influenced by the views of the workers on how their jobs offer things that they believe are important to them. For this reason, it is necessary for employees to feel happy, comfortable, and content with their job profiles.
Job satisfaction has various functions in promoting organizational performance. According to Oumwense (2018), job satisfaction in the workplace helps in shaping employee turnover rates. This is because it is the most significant aspect that can help predict an employee's intention to continue working in the organization. Moreover, Anthony et al. (2017) suggest that effective retention of banking workers is enhanced by employees' loyalty to the organization resulting from high job satisfaction. As per Abosede and Obianuju (2018), job dissatisfaction leads to high turnover rates, which can be challenging, especially for Nigeria's banking sector, as it causes the loss of talented, valued, and experienced employees leading to low overall performance. In addition, Anthony et al. (2017) contributed to the argument by suggesting that improving the working environment will foster career growth and job satisfaction among employees, which will then help promote employee retention, thereby enhancing organizational productivity and economic development. Therefore, getting to understand the links to job satisfaction among banking employees will aid employers or leaders in establishing effective approaches toward the retention of employees.
It is well understood that workers tend to perform better if they are more satisfied with their job descriptions and profiles. According to Ibrahim et al. (2016), this is because employee morale is mainly boosted by higher levels of job satisfaction which in turn helps reduce employee turnover. This will enable Nigeria's banking sector to retain its talented employees and enhance their productivity which will help improve organizational performance. To support this, Oumwense (2018) justifies that the employee's decision to leave or stay in an organization is largely influenced by the level of job satisfaction in the company. This is to mean that job satisfaction is negatively correlated to the turnover rates of employees. Therefore, dissatisfied workers are more likely to leave an organization compared to satisfied ones. As per James et al. (2018), employee satisfaction is guided by extrinsic and intrinsic aspects. The intrinsic part deals with internal rewards associated with personal growth and the job itself. On the other hand, the extrinsic aspect is related to organizational support, pay or salary, and the opportunities available for promotions (Manzoor, Wei & Asif, 2021). All these factors are critical in ensuring job satisfaction among employees, which will enhance employee retention by reducing turnover rates (Anthony et al., 2017; Jimoh & Kee, 2022). As a result, the banks will be able to retain their employees and improve their productivity which in turn promotes overall organizational performance.
Job Satisfaction and Organizational Citizenship Behavior of Employees
Another role that job satisfaction plays in promoting organizational performance is it promotes organizational citizenship behavior of employees. Organizational citizenship behavior (OCB) involves the actions or decisions taken without expecting compensation, reward, or recognition. The concept of OCB is characterized by a two-dimensional idea involving behaviors that target the entire company or organization and ones that are associated with intrapersonal relationships with coworkers or employees. Intrapersonal or coworker support helps in obtaining efficiency, effectiveness, and quality in individual performance. On the other hand, organizational support is linked with salaries and job security for employees, which help in ensuring job satisfaction among workers. According to Yaakobi and Weisberg (2020), OCB