Effect of Employee Job Satisfaction and Motivation on Profitability of Banks in Sri Lanka

Abstract

The banking sector in Sri Lanka faces increasing challenges in maintaining profitability due to evolving economic conditions, regulatory pressures and workforce dynamics. Employee motivation and job satisfaction play a crucial role in driving organizational performance and specific impact on banks profitability remains underexplored. This study addresses this gap by examining how key motivation factors including remuneration, job achievement, job security and work environment alongside job satisfaction elements such as job autonomy, workload, performance and status measured using Return On Assets (ROA). A quantitative research approach was employed with data collected via an online survey distributed to randomly selected employees from six banks in Sri Lankan Western Province. A total of 1000 questionnaires were disseminated and received 372 valid responses. The data were analyzed using frequency analysis and multiple linear regressions to assess connection between independent and dependent variables. Findings indicate that employee motivation and job satisfaction positively influence bank profitability. Notably, remuneration and job performance demonstrate a statistically significant impact on financial performance. These results underscore the importance of fostering a work environment that prioritizes employee wellbeing and engagement to sustain profitability in service-oriented organizations