Linking compensation to employees' satisfaction level - A comparative study of selected public and private sector banks in India

With changes in policies over last two decades, the public sector banks are now facing tough competition from private sector banks, which, in addition to their technological advantages, have been able to attract and retain the best talent pool in the industry using relatively more effective compensation strategies. The human resources, which had earlier been the strength of the public sector banks, are now set to pose some serious challenges to these banks as talent acquisition and retention has become the main problem for them. Also, they are not in a position to offer market related compensation to attract and retain talent due to government regulations. In this research work, an attempt has been made to carry out the comparative analysis of the satisfaction level of the employees of private and public sector banks with various compensation components. Based on the findings of the study, some suggestions for the banking industry has been given which can be useful in addressing the isfsues related to compensation.