Employee satisfaction in urban co-operative banks of Kerala

Introduction

Urban Co-operative Banks in India are financial organizations mainly set up to meet the banking needs of urban and semi-urban communities. As cooperative entities owned by their members, these co-ops are registered under the Cooperative Societies Act of their respective states. Cooperative banks are governed by a two-part system involving the Registrar of Co-operative Societies and the Reserve Bank of India. The Urban Banks Department of the Reserve Bank is in charge of regulating, overseeing, and growing these banks. This includes granting licenses, upholding banking regulations, and conducting inspections to safeguard depositor funds. Urban Co-operative Banks must follow specific rules regarding capital, asset management, and liquidity. Employee satisfaction reflects the degree of contentment and joy employees experience in their jobs and the overall workplace. It encompasses diverse aspects that shape employees' perceptions of their roles, interactions with coworkers and supervisors, and the organizational atmosphere. Contentment of employees in Urban Co-operative Banks is an important area of study, as it shows how happy workers are in these financial organizations. Studies have identified different factors that affect the satisfaction levels of employees in these banks, especially considering their distinct working environments. The future success of Urban Co-operative Banks relies on prioritizing the perspectives of their employees and regularly assessing and tracking their satisfaction levels. This article highlights the significance of analysing employee satisfaction to cultivate a thriving and sustainable work culture within Urban Co-operative Banks.

Materials and Methods

The study examined Urban Co-operative Banks in the northern, central, and southern regions of Kerala. A stratified sampling method was used to select the banks, with two banks chosen from each region, resulting in a total of six banks included in the study. A total of 240 employees will be selected from the six chosen Urban Co-operative Banks, with a proportional number of employees chosen from each level within the banks. Primary data were collected through interviews using a structured questionnaire based on the Job Satisfaction Survey (JSS). The variables assessed included pay, promotion, supervision, fringe benefits, contingent rewards, working conditions, co-workers, operating conditions, and communication. Statistical analyses such as percentages, averages, and satisfaction indexes were used to analyse the primary data. Frequency distributions and percentages were also applied to examine the socio-economic characteristics of the respondents. www.extensionjournal.com

Results and Discussion

Socio-Economic Characteristics of Respondents

To evaluate the level of satisfaction of employees; and total contribution to the bank, it is crucial to comprehend their socioeconomic profiles. The demographic and socioeconomic traits of respondents who work for Urban Co-operative Banks in Kerala are thoroughly examined in this section. Age, gender, designation, marital status, educational qualifications, monthly salary, and length of service are among the factors taken into account The above Table 1. Depicts distribution of respondents based on socio-economic variables. Most of the respondents are between 41 and 50 years old (38 percent), showing that middle-aged workers make up the majority of the workforce in Urban Co-operative Banks. There are also many employees older than 50 years, suggesting experienced personnel. The 31-40 age group is the third-largest (23 percent), while those under 30 years are the smallest group (10 percent). The low representation of younger age groups under 30 could mean limited hiring of new talent or difficulties in attracting younger professionals to this sector. It is clear that males make up the majority of the workforce (62 percent), with females making up a smaller percentage. The results show that there are more male participants, which is consistent with recent studies. These studies suggest that gender imbalance in the banking industry is often due to a lack of workplace policies that support employees, like flexible schedules and childcare services. Designation-wise distribution of employees indicates that most respondents hold junior clerk positions (35 Percent), indicating a significant number of entry-level roles. Senior clerks are the second most common with 18 percent, followed by junior accountants. The predominance of lower-level roles like junior and senior clerks reflects the operational structure of Urban Co-operative Banks, which may have a large workforce at the clerical level. Many of the respondents are married (80 Percent), indicating stability in their personal lives, which could have a positive impact on their job satisfaction. Divorced employees make up the smallest group. Most respondents have an undergraduate degree (40 Percent), followed by those with postgraduate qualifications. Employees with diplomas are third, while those with professional qualifications are the least. The large number of employees with undergraduate and postgraduate degrees suggests that Urban Co-operative Banks attract academically qualified applicants. The majority of the employees earn a monthly income between ₹50,000 and ₹1,00,000, which suggests a competitive salary range for mid-level staff. The next largest group earns between ₹20,000 and ₹50,000, likely representing entry to mid-level positions. A small proportion of employees earn less than ₹20,000, indicating a limited presence of lower-tier or entry-level staff. Most employees have 10-20 years of service, demonstrating a significant number of experienced workers. This is followed by those with 5-10 years of service. Employees with less than 5 years of experience are the least represented, indicating a relatively low number of new hires.

Descriptive analysis

Descriptive statistics of means and standard deviation were obtained from the independent and dependent variables. The summary of the descriptive statistics is shown in Table 2. All variables were measured using a 5-point Likert scale (1 being strongly disagree to 5 being strongly agree). The mean values for pay were 66, promotion was 64, supervision was 63, fringe benefits were 70, contingent rewards were 58, co-workers were 62, operating procedures were 66, Nature of work was 65, and communication was 61 respectively. The total satisfaction of JSS was 64.

Job Satisfaction of Employees

Employee satisfaction is a crucial component that impacts an organization's performance and longevity. In the context of Urban Co-operative Banks in Kerala, evaluating the satisfaction levels across various aspects can provide valuable insights into employee well-being and the overall organizational environment. This section examines the composite indices of nine key factors that influence employee satisfaction, as well as the overall satisfaction index. These factors encompass compensation, advancement opportunities, supervision, additional benefits, contingent rewards, operational procedures, co-workers, job nature, and communication. By analyzing the satisfaction levels for each factor, the goal is to identify strengths and areas that require improvement to enhance employee satisfaction and organizational effectiveness. The composite index for pay is 66. This suggests that while workers are generally content with their compensation, there may be issues with how appropriate the pay scales are, particularly for lower-level roles. Offering competitive pay packages could raise employee satisfaction in this regard. The promotion factor is categorised as "Moderate" as well, with a score of 64. This implies that even while workers are aware that promotions are available, they can believe that there aren't enough options for career advancement or that it's limited. The score for supervision was 61. Supervisors are generally seen as supportive by their staff, but in order to increase satisfaction, there may be areas where management engagement or leadership techniques are lacking. With a composite value of 70, fringe benefits received the highest score of any factor. Insurance, bonuses, and leave policies are examples of extra perks and benefits that employees value. This element is a major contributor to employee satisfaction and strength of the organisation. Employees seem to be unhappy with the Contingent Rewards they receive, with a rating of 58. They may feel their efforts and contributions are not fully appreciated. Improving the reward structure or recognition programs based on performance could greatly enhance this aspect.

Operating procedure received a score of 66. Employees consider the bank's policies and operational processes as functional, but they may want more streamlined or efficient procedures.

Co-workers' score of 62 indicates a moderate level of contentment. There may be places where team dynamics or collaboration might be enhanced, even if employees usually respect their ties with their co-workers. The nature of the work was indexed 65. Despite finding their roles meaningful, employees may feel that certain aspects of their job responsibilities could be more engaging or better aligned with their skill sets. With a score of 61, communication falls into the moderate range. This suggests that although internal communication is operational, there might be deficiencies in feedback systems, transparency, or clarity. Employees feel their work is not appropriately acknowledged or rewarded. This can result in dissatisfaction, lower motivation, and potentially higher staff turnover. Addressing this is vital for improving overall satisfaction. The moderate communication score indicates issues with information sharing, transparency, or feedback. Employees may feel their opinions are not heard or there is a lack of clarity in organizational communication. While the organization has a solid foundation, addressing specific concerns can improve satisfaction levels.

Conclusion

According to the findings, employees of Urban Cooperative Banks in Kerala have a "Moderate" level of satisfaction, with an overall index score of 66. The high score for fringe benefits suggests that the additional perks and advantages offered to employees are a significant strength, as they are valued by the workforce. However, the low score for contingent rewards indicates a critical area of dissatisfaction, implying a need for better recognition and reward systems. The organization seems to be effectively addressing employees' needs beyond basic salaries, as they appreciate the provided benefits such as health insurance, bonuses, and leave policies. Maintaining and improving these benefits can further enhance employee morale and loyalty.

Improving employee satisfaction levels can be achieved by addressing the identified issues. Enhancing recognition programs, introducing performance-based rewards, and establishing transparent communication channels are crucial steps. Additionally, improving career advancement opportunities and streamlining operational procedures can further enhance satisfaction. By focusing on these areas, Urban Co-operative Banks can move from moderate to higher satisfaction levels, fostering a motivated workforce and achieving better organizational results. Investing in employee satisfaction benefits both the employees and the overall efficiency and sustainability of the organization. The examination of employee satisfaction metrics reveals a combination of positive aspects and areas needing improvement within Urban Co-operative Banks in Kerala.

Although fringe benefits are a strong point, the organization needs to focus on crucial areas like variable rewards and communication to enhance satisfaction levels. A thorough strategy encompassing policy adjustments, enhanced recognition initiatives, and better communication methods can help raise employee satisfaction and, in turn, support the

References

1. Singh N, Soni R. Employee satisfaction in Urban Cooperative Banks-a case study of Punjab. Transstellar J Publ Res Consultancy. 2013;3(2):182-184. Available from: http://www.tjprc.org/publishpapers/2-43-1494410621fghdfhdf.pdf [cited 2023 Aug 17].
2. Panhale RM. A study of job satisfaction among the employees of Urban Co-operative Banks in Pune city. Int J Res Sci Innovation. 2018;5(8):110-115. Available from: https://rsisinternational.org/virtual-library/papers/astudy-of-job-satisfaction-among-the-employees-ofurban-cooperative-banks-in-pune-city/ [cited 2023 Aug 23].
3. Yalavatti P. A study on job satisfaction of employees in Urban Co-operative Banks in Koppal District, Karnataka. Int J Curr Res. 2019;11(5):4209-4213. Available from: https://doi.org/10.24941/ijcr.35555.05.2019 [cited 2023 Aug 23].
4. Sinha R, Gondaliya V. A study on employee satisfaction in Co-operative sector. J Hum Resources Customer Relationship Manag. 2020;4(1):29-39. Available from: http://doi.org/10.5281/zenodo.3768420 [cited 2023 Aug 23].
5. Karim M, Islam J, Mahmud AL. Job satisfaction of employees in banking sector: a case study on Janata Bank Limited. Eur J Bus Manag. 2014;6(17):70-77. Available from: https://core.ac.uk/download/pdf/234625574.pdf [cited 2023 Aug 24].
6. Biju AKVN, Arathy C. Examining the antecedents of job satisfaction among public and private bank employees in India. Res Sq.; c2022. Available from: https://doi.org/10.21203/rs.3.rs-2309120/v1 [cited 2023 Aug 30].
7. Jufrizen, Khair H, Dina AT, Pandia MM. Affecting workplace spirituality, job satisfaction, and organizational citizenship behavior: evidence from Indonesia. Econ Stud (Ikonomicheski Izsledvania). 2024;33(1):27-48. Available from: https://www.researchgate.net/publication/377702702 [cited 2024 Jun 20].
8. Rajapaksha SJ, Muddanayake SN, Dissanayake D. Effect of employee benefits on employee job satisfaction in co-operative societies: A case study. Proceedings of the 6th International Research Symposium on HRM, 2021, CIPM Sri Lanka. 2021. Available from: https://www.researchgate.net/publication/373438563 [cited 2023 Sep 2].