Predictors of Employee Engagement and Their Impact on Productivity and Mental Health: A Comparative Study of Banking and IT Sectors

Abstract

Employee engagement has emerged as a critical determinant of organizational success, influencing employee productivity and mental health. This study aims to examine the predictors of employee engagement and their impact on productivity and mental well-being in the Banking and IT sectors. Employee engagement is characterized by the emotional and psychological connection employees have with their work and organization, which directly influences their performance, retention, and overall job satisfaction.

This research identifies key predictors of employee engagement, including pay, career advancement opportunities, workplace culture, training, job security, and recognition programs, among others. A structured questionnaire was administered to employees from both sectors, yielding a sample size of 157 respondents. The study employs a theoretical model that establishes the relationship between predictors, employee engagement, productivity, and mental health.

Findings indicate that pay and career advancement opportunities emerged as the most significant predictors in both sectors, while factors like relationship with co-workers and workplace culture were found to be more relevant in the Banking sector than in IT. On the other hand, IT employees placed greater emphasis on opportunities to use skills and abilities. The study further reveals that employee engagement positively influences productivity and mental well-being, though its impact is more pronounced in the Banking sector. Employees who reported higher engagement levels exhibited increased motivation, better job performance, and enhanced psychological well-being. However, the study also highlights that while certain predictors enhance engagement, their mere presence does not necessarily lead to high engagement, but their absence may result in disengagement.

The study concludes that organizations should focus on refining employee engagement strategies by prioritizing career development, recognition programs, and work-life balance initiatives. A sector-specific approach to engagement can improve job satisfaction, increase productivity, and foster a healthier work environment.