An Empirical Study of Employee Engagement and Customer Satisfaction in Banking Sector

Jump To References Section


  • ,IN
  • ,GB


Employee Engagement, Banking Sector


Employee engagement is the level of commitment and involvement an employee has towards his organisation and its values. To sustain in this highly competitive environment, unexceptionable level of performance of workers is possible only when workforce reveals tenacious commitment towards their errands. A major problem that banks in India will face, once information and technology implementation reaches its optimum level, is staff retention. They need to train their existing staff to function effectively in the new environment and once the requisite skills are acquired by employees, they may have trouble in retaining the staff. It is in this context that the present study provides an analysis of factors that appear to be relevant in the context of employee engagement in the Indian banking industry. The important factors emerging from the primary survey of bank employees in Delhi are compensation and career growth, rewards and recognition and seniors support factors


Download data is not yet available.


Metrics Loading ...




How to Cite

Singhal, N., Bala, K., & Sarawgi, S. (2018). An Empirical Study of Employee Engagement and Customer Satisfaction in Banking Sector. Journal of Business Thought, 8, 24–41. Retrieved from



Received 2018-05-16
Accepted 2018-05-16
Published 2018-05-16



Alarcon, G. M. and Lyons, J. B. (2011). The relationship of engagement and job satisfaction in working samples. The Journal of Psychology, 145(5), 463-480.

Bates, S. (2004). Getting engaged. HR Magazine, 49(2), 44-51.Baumruk, R. (2004). The missing link: The role of employee engagement in business success.Workspan, 47, 48-52.

Beatty, S. E., Mayer, M., Coleman, J. E., Reynolds, K. E. and Lee, J. (1996). Customer-sales associate retail relationships. Journal of Retailing, 72(2), 223-47.

Brief, A. P., and Motowidlo, S. J. (1986). Prosocial organizational behavior. Academy of Management Review, 11(4), 710-725.

Brown, S. P. and Lam, S. K. (2008). A meta-analysis of relationships linking employee satisfaction to customer responses. Journal of Retailing, 84(3), 243-255.

Chowdhary, B. (2013). Job satisfaction among bank employees: An analysis of the contributing variables towards job satisfaction. International Journal of Technology Enhancements and Emerging Engineering Research, 2(8), 11-20.

Cropanzano, R., and Mitchell, M. S. (2005). Social exchange theory: An interdisciplinary review.

Journal of Management, 31, 874-900.

Deolalkar, GH (1998), The Indian banking sector – On the road to progress, Study commissioned by ADB for RETA, [Online], India/india_bnk.pdf.

Devi, G. G., and Chandraiah, M. (2013). An empirical study on job satisfaction of employees in commercial banks. International Journal of Research in Engineering and Applied Sciences, 3(5), 1-8.

Dolen, W. L. (2002). Customer-sales employee encounters: Dyadic perspective. Journal of Retailing, 78, 265-279.

Hackman, J. R. and Oldham, G. R. (1980). Work Redesign.

Harter, J. K., Schmidt, F. L., and Hayes, T. L. (2002). Business-unit level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. Journal of Applied Psychology, 87, 268-79.

Hatfield, E., Cacioppo, J. and Rapson, R. L. (1993). Emotional contagion. Current Developments in Psychological Science, 2(3), 96-100.

Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work.

Academy of Management Journal, 33, 692-724.

Kahn, W. A. (1992). To be full there: Psychological presence at work. Human Relations, 45, 321-349.

Leiter, M. P. (2005). Engagement with work: Issues for measurement and intervention. The human resources revolution: Why putting people first matters, 213-230.

Mahfood, V. W., Pollock, W., and Longmire, D. (2013). Leave it at the gate: Job stress and satisfaction in correctional staff. Criminal Justice Studies, 26(3), 308-325.

Maslach, C., Schaufelli, W. B. and Leiter, M. P. (2001). Job burnout. Annual Review of Psychology,52, 397-422.

May, D. R., Gilson, R. L. and Harter, L. M. (2004). The psychological conditions of meaningfulness, safety and availability anhe engagement of the human spirit at work. Journal of Occupational and Organizational Psychology, 77, 11-37.

Paul, E. P., and Phua, S. K. (2011). Lecturers' job satisfaction in a public tertiary institution in Singapore: Ambivalent and non-ambivalent relationships between job satisfaction and demographic variables. Journal of Higher Education Policy and Management, 33(2), 141-151.

Rafaeli, A. (1993). Dress and behavior of customer contact employees: A framework for analysis. (T.D. in Swartz, Ed.) Advances in Services Marketing and Management, 2, 175-211

Rhoades, L., Eisenberger, R. and Armeli, S. (2001). Affective commitment to the organization: The contribution of perceived organizational support. Journal of Applied Psychology, 86, 825-836.

Rhoades, L., and Eisenberger, R. (2002). Perceived organizational support: A review of the literature.

Journal of Applied Psychology, 87, 698-714.

Richman, A. (2006). Everyone wants an engaged workforce how can you create it?. Workspan, 49, 3639.

Robinson D, Perryman, S. and Hayday, S. (2004). The drivers of employee engagement, Institute for Employment Studies, Brighton, Report 408, available at http://www.employmentstudies.

Salanova, M., Agut, S., and Peiró, J. M. (2005). Linking organizational resources and work engagement to employee performance and customer loyalty: The mediation of service climate.Journal of applied Psychology, 90(6), 12-17.

Schaufeli, W. B., and Bakker, A. B. (2004). Job demands, job resources, and their relationship with burnout and engagement: A multi-sample study. Journal of Organizational Behavior, 25, 293-315.

Schmit, M. J. and Allscheid, S. P. (1995). Employee attitudes and customer satisfaction: Making theoretical and empirical connections. Personnel Psychology, 48, 521-536.

Shahid, M. N., Latif, K., Sohail, N., and Ashraf, M. A. (2012). Work stress and employee performance in banking sector evidence from district Faisalabad, Pakistan. Asian Journal of Business and Management Sciences, 1(7), 38-47.

Shaw, K. (2005). An engagement strategy process for communicators. Strategic Communication Management, 9(3), 26.

Sonnentag, S. (2003). Recovery, work engagement, and proactive behavior: A new look at the interface between nonwork and work. Journal of Applied Psychology, 88, 518-528.

Spiro, R. L. and Weitz, B. A. (1990). Adaptive selling: Conceptualization, measurement, and nomological validity. Journal of Marketing Research, 27(1), 61-69.