Effect of Employee Wellbeing on Job Performance in Public and Private Sectors Banks: A Literature Review
Deepika Rathore, Pooja Jain
1Ph.D Scholar, Professional Studies, Devi Ahilya Vishwavidyalaya, Indore.
2Associate Professor, Devi Ahilya Vishwavidyalaya, Indore.
*Corresponding Author E-mail: deepverma984@gmail.com
ABSTRACT:
This paper examines the impact of worker well-being on job performance in government and private sector banks between 2000 and 2025. It uses a systematic approach to literature reviews, analyzing relevant material from online databases. The findings reveal that employee well-being, psychological well-being, occupational well-being, job satisfaction, work-life-balance, and work pressure are the main influencing factors. Employee well-being has a significant impact on job performance, organizational productivity, and job satisfaction. The study highlights research gaps and offers insights for future studies. It adds to the body of information on employee well-being and its impact on job performance in banks. The research also has social implications, as it highlights the importance of employee swellbeing for productive performance and a healthy society. The study fills a knowledge gap on the work performance and well-being of employees in the banking sector.
KEYWORDS: Employee wellbeing, Job performance, Banking sector, Employee wellness. Working environment.
INTRODUCTION:
Well-being refers to a worker's overall state of mind, body, emotions, and finances during their employment, which significantly impacts productivity and staff retention. It is a complex and multifaceted concept, with organizations increasingly emphasizing work-related wellbeing. The study of employee welfare uses various techniques to emphasize various aspects of work-related well-being. A two-dimensional model with five components of affective wellbeing is presented, highlighting the importance of intrinsic motivation, sentiments, thriving, vigor, flow, organizational commitment, and job involvement.
These days, a worker's entire mental, physical, emotional, and financial state while working is called their "well-being," which is a broad term that has a big impact on productivity and employee retention. Rahmani et al. (2018) state that wellbeing is a hard concept to define and measure because it is complex and multifaceted, and even though the levels of national and international well-being are still of interest to people all over the world, the term itself is still unclear and needs more explanation. (Kowalski and Loretto, (2017). Well-being at work is also a growing concern.
Numerous scientific disciplines have been included into the research of employee welfare (Kowalski and Loretto, 2017). "Anxiety-comfort, depression-pleasure, bored-enthusiastic, tiredness-vigor, and angry-placid" are the factors discussed. Fisher (2010) suggests that in addition to job satisfaction, happiness at work should be associated with intrinsic motivation, feelings felt at work, flourishing, vigor, flow, organizational commitment, and job participation.
Banking Sector:
One of the most consistent forces behind India's recent economic expansion has been the banking industry. While the rest of the globe was still dealing with the fallout from the global financial crisis, the Indian banking sector, which is valued at US$1.22 trillion, has made significant strides in recent years. The financial sector's liberalization and the nation's economic growth have fueled a transformation in the Indian banking industry during the past 20 years. The Indian banking industry is currently on the verge of a silent revolution. Significant investments and advancements have been made in the area recently. The Indian banking sector has experienced significant investments and developments in recent years, but employees are experiencing excessive pressure, stress, and demotivation, requiring a wellbeing study.
Wellbeing and job performance:
Job performance, which includes task and contextual performance, is directly impacted by wellbeing (Motowidlo and Van Scotter, 1994). While contextual performance focuses on important elements of organizational citizenship behavior, such volunteering for extra-role duties and assisting others, task performance reflects workers' primary job obligations (Motowidlo and Van Scotter, 1994). According to Wright and Cropanzano (2000), HPWT emphasizes that job performance is a direct result of wellbeing. According to this theoretical framework, happiness and wellbeing are synonymous, and previous studies have used them interchangeably (Wright and Cropanzano, 2000, 2004).
Theoretical support:
Stein and Höper (2021) studied psychological resource theories, focusing on cognitive evaluation, goal achievement, and conservation. They found that people seek, protect, and conserve resources, leading to stress among workers. The term "occupational well-being" is increasingly recognized as crucial for human functioning and job performance.
According to the COR theory, people tend to gather and guard resources, leading to psychological distress. Liao et al. (2019) argue that work-life conflict causes resource loss in both official and nonofficial domains, causing stress and anxiety.
Time and effort needed to manage and result in stress reactions, work-life conflict has a detrimental effect on people's wellbeing (Allen et al., 2000). As a result, employees could develop unhealthy habits including missing exercise, wholesome meals, or getting enough sleep (Moen et al., 2013). This is supported by research showing a detrimental impact on work-family conflict and wellbeing (e.g., Grant-Vallone and Donaldson, 2001). Wellbeing has an immediate effect on job performance, which encompasses contextual and job performance (Motowidlo and Van Scotter, 1994).
Because it requires time and effort to manage and can result in stress reactions, work-life conflict has a detrimental effect on people's wellbeing (Allen et al., 2000). As a result, employees could develop unhealthy habits including missing exercise, wholesome meals, or getting enough sleep (Moen et al., 2013).Wellbeing has an immediate effect on job performance, which encompasses contextual and job performance (Motowidlo and Van Scotter, 1994).
In essence, this work offers a critical evaluation of the responses to the following two significant research topics and suggests directions for further investigation:
RQ1. How does employee well-being impact on work performance in banks that have been the subject of attention between 2000 and 2025?
RQ2. What variables influence the work performance and well-being of employees in banks as seen between 2000 and 2025?
METHODOLOGY:
This article uses a systematic review approach to conduct a literature review on the banking sector, work-life balance, job satisfaction, stress at work, and employee well-being. The search strategy includes papers published between 2000 and 2025, as well as online databases like Google Scholar, Springer, Emerald, and Research Gate. The search terms include banking industry, work-life balance, job happiness, workplace stress, and employee well-being. The existing material is so extensive that only a few study publications contain it.
Requirement for participation:
Inclusion criteria:
The study takes into account peer-reviewed English-language research articles, literature reviews, case studies, surveys, opinions, and empirical investigations that were published between 2000 and 2025. This research includes their contributions to the topic of employee wellbeing, its effect on job performance, and the various elements that influence it.
Exclusion criteria:
The article excluded research on job performance, stress levels, or employee well-being due to inadequate data, unclear research, and a lack of clear evaluation criteria.
Selection of articles for review:
This study used key terms like "Effect of Employee Well-being on Private and Government Banks" on online databases to locate relevant material. The search was filtered to include "Banking sector," "Employee well-being," and "job performance," with relevant studies selected based on inclusion and exclusion criteria. Emerald, research gate, Springer, and Elsevier. The search was then filtered to just one term, such as "Banking sector," "Employee well-being," and "job performance,"." In order to make sure that no pertinent study was overlooked throughout the review, different combinations of these search phrases were employed in the chosen database. Studies that were relevant were selected on the previously indicated in inclusion and exclusion criteria figure.
Inclusion-exclusion criteria figure:
After identifying 43 publications are more relevant which has been used for drawn a final conclusion. The option is shown in the study flowchart in Figure and key findings are displayed in several Tables.
Figure 1
Table of Literature Review:
Tables of literature review above here-
In order to extract the most pertinent papers and theories, the titles and abstracts of the search results were examined for any relation to the study's objectives. Out of the 155 pieces, we used Journal, Author/Year Research type/N: makeup of the sample Results
After identifying 43 publications (Table of Literature Review) which are more relevant which has been used for drawn a final conclusion. The option is shown in the study flowchart in Figure and key findings are displayed in Tables over here.
LIMITATION:
The study only draws on a small number of pertinent articles published between 2000 and 2024 that were found using a restricted database search of Google Scholar, Emerald, Research gate, Springer. As a result, rather than serving as a comprehensive overview of the literature, our study aims to paint a provocative picture of the essential components of the body of knowledge in this area. We are unsure if some significant studies were missed in our rush to evaluate as many journals as we could.
CONCLUSION:
The correlation between engaged workers and a successful company is emphasized by the findings pertaining to employee performance and the significance of organizational health. Recognizing the need of creating a positive work environment and placing a high priority on employee well-being is becoming increasingly important as the sector develops. Banks may improve customer satisfaction, boost staff performance, and set themselves up for long-term success by fostering a pleasant corporate climate. Research shows that according to the tables of literature review there is a direct correlation between employee performance and employee well-being in the banking industry. Healthy work cultures at banks are associated with better financial outcomes because they foster better client connections, increased staff satisfaction, and efficient operations.
This study will provide this practical implications:
Firstly, top management of organizations will have to formulate employee-oriented policies that improve the wellbeing of employees at the workplace. Employees face several hurdles, such as work stress, high workload, work and family issues due to work. The workplace dynamics affect the employees’ health and affect them psychologically due to a pressured working environment and high targets from managers. Employee needs good motivation and healthy working environment without obstacles to perform well in organization.
HIGHLIGHTS:
1. This Paper is a systematic literature review of employee wellbeing and job performance constraints.
2. This Research paper is based on Exclusion-Inclusion criteria technique.
3. This literature search only included papers that were published between 2000 and 2024, as well as the Google Scholar, Springer, Emerald, and Research Gate and online databases.
4. Article related with employees wellbeing and its impact on job performance and different factors are included for this studies.
5. This Article will be helpful in deriving conclusion for the employee wellbeing and job performance.
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Received on 18.07.2025 Revised on 13.08.2025 Accepted on 03.09.2025 Published on 07.11.2025 Available online from November 17, 2025 Asian Journal of Management. 2025;16(4):317-321. DOI: 10.52711/2321-5763.2025.00048 ©AandV Publications All right reserved
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