Psychological Well-being and Job Satisfaction Among Recent Recruited Employees: Mediating Role of Employee’s Performance in Banking Sector of Islamabad

Abstract

This study examines the connection between newly hired workers' psychological health, job happiness, and performance in the banking industry in Islamabad and Rawalpindi. Recognizing the high-stress nature of the banking sector, this research investigates the role of psychological well-being job satisfaction, and explores employee performance as a mediator in this relationship. The cross-sectional survey was conducted with a sample of 200 participants.The finding reveals a significant positive correlation between psychological well-being and job satisfaction, with employees in better psychological health reporting higher job satisfaction. According to mediation analysis, the relationship between psychological well-being and job satisfaction is mediated by employee performance, indicating that improving performance is essential to raising satisfaction. Interestingly, employee performance with less than one year of experience demonstrated higher level of psychological well-being, job satisfaction, and performance compared to those with more tenure. Furthermore, those with more education especially those with a PhD showed greater psychological health. The study comes to the conclusion that in order to promote better job happiness and performance, organizations should place a larger priority on psychological well-being, particularly for recently hired staff. While practical implications suggest that banks should incorporate wellness programs and performance-related activities to improve employee outcomes. Theoretical contributions include identification of performance as mediator. Further research could explore longitudinal effects and the role of specific banking roles in influencing employee well-being and performance. Keywords: Psychological well-being, Job satisfaction, Employee Performance, Banking industry, newly hired employees, Islamabad, Job happiness, Cross-sectional survey, Employee wellness, High-stress occupations, Employee outcomes.