The Influence of Organizational Factors on Job Satisfaction in the Commercial Banking Sector in Malaysia

The purpose of this study was to investigate the factors affecting the job satisfaction of employees in the commercial banking sector in Malaysia. Twenty-four banks in the Klang Valley area, Peninsular Malaysia were targeted as survey respondents. Data were collected using a structured questionnaire based on organizational factors (pay, promotion, supervision, fringe benefits, contingent rewards, working conditions, co-workers, operating conditions and communication), individual factors (gender and age) and job satisfaction of employees in the commercial banking sector in Malaysia. The study showed that organizational factors significantly influenced employee job satisfaction in the commercial banking sector. Alternatively, age and gender did not significantly influence employee job satisfaction in the commercial banking sector in Malaysia. The research provided a better understanding of the factors affecting job satisfaction in the commercial banking sector. Younger generations bring with them new expectations and retention concerns. Employers need to understand the needs and wants of their employees and develop strategies for recruiting and retaining top talents. The results can help CEO’s to identify strategies to increase employee job satisfaction by increasing their motivation for the job performed thus leading to higher productivity and better employee-retention strategies. The research findings also contribute to a better understanding of all related parties on the application of theories and model in relation to financial compensation aspects and organizational commitment.