Components of Job Stress and Their Impact on Employee Performance in the Banking Sector: Evidence from Pakistan

Abstract

The proposed research examines the most influential antecedents and outcomes of job stress and their implications for employee performance and well-being in the context of Bangladesh, which has not been analysed in the banking organisations of the Punjab region of Pakistan. Based on a conceptual framework of Job Demands-Resources (JD-R) theoretical framework, the study will examine the two main job-related stressors, which include job demands and work-life conflict and how they lead to the occurrence of job stress; and the impact of job stress on job performance, job satisfaction, burnout and turnover intention. Moreover, the role of organisational commitment is also discussed, as it may have a mitigating effect in this dynamic. The primary data were collected from 300 employees in commercial banks in the region using a quantitative approach with a cross-sectional survey design. Partial Least Squares Structural Equations Modelling (PLS-SEM) was used to test the posited relationships among the data. As the results have shown, job demands and work-life conflict are important and positive predictors of job stress. Job stress, in turn, has a negative impact on job performance and job satisfaction, and strongly enhances burnout and turnover intention. It was also identified that organisational commitment was highly positively related to job satisfaction, indicating its ability to moderate the adverse effects of work conditions. The study offers theoretical improvements to the JD-R theory within the non-Western service industry environment. It provides several practical suggestions on how banking institutions can adopt stress-reducing mechanisms, increase organisational support, and encourage employee retention/performance based on enhanced workplace policies and resourcing.