Introduction: About Faysal Bank: Faysal Bank was incorporated in Pakistan on October 3, 1994, as a Public Limited Company.

Currently the FBLs shares are listed in all the major stock exchanges of Pakistan. It is engaged in Commercial, Consumer, Corporate and Islamic Banking. Currently Faysal Bank employs 6000 people from its banking activities and with its recent successful acquisition of RBS, has managed to become one of the top rated banks in Pakistan and has expanded its operations to over 220 branches, with combined business assets of over PKR 250 billion The Pakistan Credit Rating Agency Limited (PACRA) and JCR-VIS Credit Rating Company Limited have determined the Bank's long-term rating as 'AA' and short term rating as 'A1+'. Recruitment: Recruitment at Faysal Bank is done by the relevant HR business Partner, but for SVP and grades above not only are the functional heads involved but also the Head of HR is involved in recruiting. The job description is made by the line manager for the relevant job, who then gets it approved by the Functional head and the HR head. Recruitment at Faysal bank is done by utilizing the appropriate channels of soliciting quality employees. This could be done through print ads, referrals, recruitment portal references, head hunters etc. Resourcing of employees is done through: Internal Recruiting: The Hr department invites the existing employees within Faysal Bank to apply for a position. The job notice is posted on the network, and the interested applicants have to compete on merit with other external applicants External Hiring: Recruiting employees from outside the bank at all levels, senior, middle and at entry levels. Temporary Hiring: The bank requires services on a temporary basis and hires experts on contracts. Outsourcing: The bank hires from a third party contract because employees are needed only temporarily. Hiring of these employees is done at all department and functional levels. Rehiring of employees who have resigned on their own might be considered for employment, but they have to compete on merit basis with other applicants.

Bank Contract Employees: These employees have crossed their retirement age and are hired because they have extensive experience and expertise in their fields. These employees are hired on contract. Conditions of Employment: Faysal Bank hires employees at officer/executive level with a minimum qualification of Graduation, done by a recognized and reputable university or institute. The minimum age of employees can not be less than 18 years. The following procedure is followed for recruitment: Aptitude/written Test At entry level all candidates will have to give an aptitude test which is a written test for employees with no experience designed and conducted by HR. Minimum Interviewing Guidelines Before the employees are selected they have to undergo through the interview process. All interviews would be conducted by the relevant Heads, according to the applied post. Example, for VP and below, interviews shall be conducted with line manager and HR representative. It is mandatory to record all interview assessments in the given Interview Evaluation Form. Reference Checks All candidates will bring in at least two references which will be verified once the applicant is selected for the job. Unfavorable recommendations from the references shall lead to termination of the employment. Medical Check-up All candidates will have to go through a medical examination before joining. Any candidate failing the medical test will not be eligible for employment. Hiring of Relatives Hiring of employees close relatives and family is not being allowed. Senior HR Business Partner and line managers must ensure that distant relatives if hired are not be posted in the same business segment and under no circumstances report to each other. In case a relationship is developed between two employees after having entered the employment of the Bank, the Bank has the right to either transfer one (or both) to non-conflicting assignments or offices or request one to resign to comply with the policy.

Appointment Letter of Appointment: HR Services shall issue appointment letter to the selected employee. Confidentiality: All persons hired to work at FBL are required to sign a declaration of secrecy agreement. Disclosure of Personal Information: All candidates at the time of joining will be required to fill in the Candidate/Staff Record Form giving details of their respective profiles and attested photographs. Verification of Antecedents: The past records of all persons appointed shall be verified within three weeks of the employee joining FBL. HR Department will affirm in writing the past history of the appointed employees from their former employers and nominated references, and academic/ professional achievements from the degree awarding universities / educational institutes. Traveling Expenses for Interviews: No traveling expenses are given for interviews at entry levels. Traveling expenses are only paid for candidates at senior-and middle management positions. Relocation Expenses on Joining: Relocation Allowance: All employees who are relocated or transferred from one city to another are given a relocation allowance according to this policy. Change in Personal Status: All employees are required to notify the HR Department, for any change in their personal status. Orientation: The idea of the orientation program at Faysal Bank is to provide new employees with an overview of banks policies, organizational set up and strategy. Line managers are responsible to make sure all new employees attend the orientation program. The orientation program also includes the IT Department (who are notified by the HR Department) to call the new employee at mid level or higher, a week before she/he is to join FBL and arrange for them the necessary equipment that they would need to perform efficiently at their job. Job Rotation: Job rotation/ change of assignment are done at FBL to encourage growth and learning of its employees and to ensure a proper check on its business practices. However not all employees are eligible for job rotation e.g. employees with a highly technical skill/ expertise.

Functional/ departmental heads can rotate branch staff and cash officers and tellers at least once every three years to support the employees growth. Probation period Every new employee except for a few exceptions has to go through a probationary period at Faysal Bank. During the probationary period the bank evaluates if the employee is fit for the job and if he/she would be able to fit in the Faysal Bank culture. Only those new recruits placed at the rank of EVP or above and with more than fifteen years work experience will not go through the probationary period. The standard time for probation is three months. Once the probationary period is over, the employee will be made given a permanent position based on the recommendation of the line manager. In case if performance is unsatisfactory during the probation period it can be extended for another three months at the sole discretion of the bank. Termination An employee who wishes to leave the organization will have to give a notice one month in advance. If he fails to do so he/she will have to pay one month salary. However, the bank at its sole discretion may waive the notice period and release the employee with immediate effect. An outgoing employee has to hand over his responsibilities/assignments to the person designated by the bank before leaving. An outgoing employee shall not be considered released unless a release letter is handed out by the human resource department. Job analysis and Job Description Faysal Bank conducts regular job analysis to establish a standard job description for documenting positions, to maintain an equitable system of determining the relative value of a general position and to assign grades to job positions. After every job analysis a job description is made by the HR department. The job analysis is carried out by the line manager who identifies the tasks are needed to perform for that position. Once he has identified the tasks he sits down with the HR department and the tasks are documented in the shape of a job description. The relative value of the work is also decided by the HR department based on the expertise of the line manager and/or departmental head and based on the value a job grade is assigned to the position. In Faysal Bank every job description includes the following: Job title and the next level of manager reporting Specific objectives for that position The purpose of the job, its scope, duties and responsibilities The required level of education and experience Flexible Working Hours: The Faysal Bank Management recognizes the need of Flexible working hours in some areas of business i.e., I.T and Treasury work. However, the employees are still required to complete the

required working hours. For other departments, the working hours are the same as normal bank hours i.e. 9am to 5pm. It is also mandatory for the staff in Treasury and I.T department to be in the office during 10am to 12.30 or 3pm to 5pm, while rest of the working day is flextime, although they have to complete a total of 42 working hours over 5 days. The facility of flextime can be availed with the approval of Department head who then forwards the list to HR Services Head for records. Also, in the areas where there are different shifts, the register is to be maintained approved by the Department head and forwarded to the HR for records. Setting objectives and goals: In February SMART (specific, measurable, achievable, realistic and timely) are given to the employees by their line managers. Each employee has to achieve these goals as they are assigned to the employees according to their level and standard. The goals highlight business and personal targets and measure along with the time frame to for each portion of work to be completed by the employee. A signature of the employee is taken on those goals assigned, making it official for the employee to execute and achieve all goals. The performance evaluation of the employee with relation to the goals assigned to him/her is done at the end of each year, all performance reviews must be signed by the supervisor and the employee themselves, where in case of disagreement about their performance, the employees have the right to document their opinions with their signs. Spot Rewards: Spot rewards is a policy initiated by Faysal Bank to rewards employees spontaneously on a oneoff basis for exemplary achievement rather than waiting for the annual reward review based on performance. All full time employees of Faysal Bank are eligible for this award except incentivized employees such as PBO, Agri staff etc. Spot rewards are granted on exemplary effort for e.g. Cost savings, revenue generation, meeting stringent deadlines, overcoming formidable obstacles and achieving a breakthrough in a problem which was difficult to resolve. If any staff member shows such exemplary effort then the line manager or departmental head forwards the case to the HR department requesting them that the particular staff member should be considered for the spot reward. The rewards committee in the HR department then reviews the case critically and asks the line manager or departmental head to provide strong reasons or in other words convince them in a face to face meeting. Once convinced that the effort was indeed exemplary the next step is to determine whether this effort brought about a change at departmental level, divisional level or organizational level. The bigger the affect of the change the greater the spot reward. At departmental level the reward is Rs. 10,000, at divisional level Rs. 25,000 and at organizational level it is Rs. 50,000. Apart from the monetary benefits, Faysal Bank also makes sure that the individual gets recognition by posting his name on the department/ functional board for all else to see.

CEOs Club: CEOs Club is an Employee motivation Program at Faysal bank designed for the employees who have received a rating of 5 in their annual appraisals or have been consistent in performing services in the last three years. The rewards given to the members of CEOs club include: Recognition by the CEO and senior leadership of the bank during a formal lunch Certificate and memento Any staff member who have been a part of CEOs club for a continuous period of 3 years, would be entitled to receive Rs. 100,000/- as an award. The membership of the club is valid for one year and renewed after each year based on the next performance appraisal cycle. Education Assistance Program: Faysal bank feels that education is the most important factor and it should not be stopped in anyway for its employees and their children. In this regard, lower level employees (AVP & Officer grade I, II and III) are provided with Education benefits for their children. An amount of Rs. 750/- per month is deposited in the employees account. This also increases an employees motivation and makes him/her feel that the organization cares. FBL also provides with education benefits to employees who wish to pursue professional qualifications while working with the bank that is, part time. The employees whose rating is not less than 3 are eligible for this program. Employees taking evening courses such as CIMA, ICMA, CFA, CIA, ACCA etc. from a recognized institute can apply for course/examination fees reimbursement upon successful completion of the course. Limitations apply though: Reimbursement shall only be allowed on those courses which are successfully completed during the service at Faysal bank In case the employee resigns or is under termination notice, no reimbursement will be made, and if any payments has been made by the bank earlier will have to be refunded to the bank Employee involved in any disciplinary issue is not eligible for this program All courses/programs shall be approved by the Functional Head and HR Head before applying. Annual Performance Appraisal: All full time and contract employees are evaluated according to their performance on a yearly basis. New employees who have worked for the company for three or less than three months are evaluated next year if the annual performance appraisal falls in that specific period of time. Employees are appraised by their Supervisors or Line Managers who will gauge employees according to their attitude, work performance and the potential they show. Again the employee and Supervisor/ Line manager need to sign an Appraisal form, showing that they are in

agreement. The appraise (employee) has the right to add his/her own comments to the Appraisal form. In case there is a disagreement about the Performance Appraisal, the employee has the right to take his concerns to a higher manager, who will conduct his own performance appraisal of the employee and solve the dispute. Promotion: The promotion exercise is done each year or during certain specified intervals decided by the management after taking in consideration the business and employee career progression needs and budgetary provisions. Promotions are done on the basis of merit decided by the managements review of employee performance appraisal, employees ability to perform at a higher level, employees experience and skills set and availability of positions. Employees are also never to be promoted on the basis of seniority. Merit based annual Salary Rise / Promotional Increase / Market Based Adjustments: Salary reviews; promotional increases and market based adjustments will be made by considering the performance, complexity of job and benchmarking with the market. This may be done as a result of annual performance appraisal and performance ranking. Individual salary reviews of high ranking performers would be based on retention need of employee and criticality of job. The management decides rate of merit increase each year on the basis of business outlook for the Bank, budgetary allocations, and employees performance ranking. Annual salary increase of an employee against whom disciplinary proceedings are pending will not be released till the matter is cleared. Upon finalization of disciplinary process, the decision regarding release shall also be made. Unsatisfactory Performance: When an employees performance rating comes to 2 or below, it means that he/s she is performing below the standards of what the bank expects out of its employees. And thus, the employee is put on probation for 3 months, regulating his/her performance. If at the end of three months, the employee does not show any improvement, the bank extends the employees probationary period to another 3 months on the HR or functional head or else disciplinary action is taken against the employee. Performance Bonus: The objective of this policy is to appreciate and reward good performers and to distribute bonus to deserving and hardworking candidates. To accomplish this, a link must be established between the performance of the Bank as a whole and that of bonus distribution based on group and individual performance. For distribution and payment of performance bonus, HR Function with the approval of P&CEO may use different assessment / evaluation techniques from time to time. The employees who are eligible for the bonus include: Full time employees working consistently for last 3 months Any employee with a six month service contract with the bank

The employees on probation are also eligible and are evaluated on the basis of pro-rated basis from date of joining and after their matters are cleared. Employees who have joined during the year and are fulfilling the above criterion are given bonus on pro-rated basis The employees entitled to receive the bonus shall be present at the time of bonus disbursement. However, the employees who have resigned or are terminated are not eligible for receiving the bonus. Employees who are assigned to a certain assignment or task are eligible to receive cash incentive and not annual performance bonus. Remuneration and Organization: Hajj: Faysal bank has a policy of Pilgrimage leave which can be availed to perform religious rituals. This can be availed for 15 working days (excluding of public holidays, Sundays and nonworking days). For further leave required, the employee can avail the Privilege Leave which is a mandatory leave to be taken by an employee for 24 working days during one calendar year. The bank also offers 10 Hajj Packages to its full time confirmed employees. The employees are selected through balloting and the eligibility criterion is: The employee should be of grade 3 and above or have completed three consistent years as full-time employee with FBL Have not availed Hajj or Umrah facility through FBL in previous years Are Muslims The 10 Hajj package include 8 employees who fit the criterion stated above and the other 2 employees are selected based on their superior performance. The Hajj cost includes cost as per Government approved rates plus 20% or as agreed by the management each year. Cash Allowances: The remuneration offered by Faysal Bank to its employees is based on gross salary and allowance. It is based on category of the job/department; he/she is working for. The management periodically reviews the remuneration offered to the employees based on the performance and make changes when and where required. Different fuel allowance is given to different department officers, depending on their grades and level of department they are working in. Agri Credit Officers receive 90 liters of fuel allowance along with the payroll on a monthly basis based on the fuel rates. Branch Managers receive 100 liters of fuel allowance along with the payroll on a monthly basis based on the fuel rates. This allowance is given to branch managers below RVP grades which includes Assistant Vice President (AVP) and Officer Grade I, II and III. Personal Banking Officers would be paid an allowance of Rs. 3,600/- per month in lieu of fuel expenses along with the payroll on a monthly basis.

Utilities allowance is given to permanent employees in grade of Resident Vice President (RVP) and above equal to 10% of their Basic salary each month. Evening banking Allowance is given to employees working in evening shifts from 5pm to 8.30pm. The allowance is based on the recommendations given by the functional head and approved by the HR head. Call Centre Shift Allowance is paid to full time employees working at the Call Centre providing uninterrupted customer care service. All above stated allowances are reviewed from time to time on recommendations of the Department on Functional Head and approved by the HR head. Learning and Development: The purpose of the Learning and Development Department is to create an opportunity for employees at FBL to develop their careers with the aim of achieving highest possible efficiency for present and future skills required. The department creates an environment of learning and growth within the organization and gives a chance for employees to maintain and develop their skills according to the changing work environment. The strategy used by the Learning & Development to provide support in personal development of employees is by: Aligning training needs to meet employee and business needs; Continuously updating course material in line with the industry trends; Ensuring close communication with consultants to provide insight to the best practices of the industry Providing on-the-job and off-the-job training. Learning & Development has its own approved training budget. In the event that a training need is identified for which no provisions have been made in the budget, approval is required from P&CEO. Leave Policies Casual Leave: Ten working days of Casual Leave may be allowed in one calendar year to meet emergency and unforeseen circumstances, this includes death in the family , child births both maternity and paternity leave where advance leave cannot be planned. Since Casual Leave is allowed in only emergencies and in incidental situations, it is only allowed for a day. If an employee takes more than one day of absence from work, it is taken as the employees annual leave. Casual leaves are unpaid.

Sick Leave: Eight working days of Sick Leave may be allowed during one calendar year on account of medical illness. Sick Leave when taken for more than three days at a time must be supported by a Medical Certificate. Sick Leaves are unpaid in form. Hospitalization Leave: Seven working days of Hospitalization Leave may be permitted during one calendar year when an employee is hospitalized on the advice of a doctor. Hospitalization Leave request must be supported by a Medical Certificate. Extended hospitalization sick leave is granted at Managements discretion. Privilege/ Annual Leave: Twenty Four working days (exclusive of public holidays, Sundays and non-working Saturdays) shall be allowed as Privilege Leave during one calendar year. Each Function, Department or Branch must plan its Annual Leave in advance, latest by end of January of each year. The Annual/ Privilege Leave roster must be approved by department, division or branch manager must be submitted to HR Function and any changes therein must also be intimated to HR Function. The Leave can be taken for fifteen days without break or once a year, and the left over days, if any, can be taken when required. There will be no encashment taken of these Leaves. The Heads should always take the time line that the bank is following into consideration when planning the Annual Leave roster for the employees, to make sure no period of half year, annual closing of accounts or reporting is clashing with the Leaves. It is also mandatory for all employees to avail their Privilege/ Annual Leaves every year. Maternity Leave: Seventy-Two working days may be allowed on account of Maternity Leave to a female employee. Maternity leave shall only be granted after 28 weeks of pregnancy, provided Doctors letter of confirmation is submitted. Maternity Leave shall only be granted twice in the entire service of a female employee. For confinements beyond the second one, the employee shall take leave from her normal leave account or unpaid leave. Maternity Leave may also be given in continuation of or in combination with any other kind of leave that may be due to a female employee. Pilgrimage Leave: A maximum of fifteen working days on account of performing Hajj for Muslims and respective "holy places" for staff practicing other religions shall be granted to employees who have completed two years service with the Bank. Balance days, if required, by the employee shall be made up later. Also, these leaves are permitted only once during the employees service life.

Leave Without Pay: The leave without pay is only considered in exceptional circumstances on the recommendation and sole discretion of the management. Approval of the Functional, Departmental Head and Head HR is required for permission of leave without pay. HR will calculate appropriate deductions of staff liabilities in case leave without pay are allowed to the employee. Leave Encashment: The resigning employee (upon settlement) will be entitled for leave encashment on account of un-utilized privilege leave for the current year. However, where the notice period falls between two calendar years, the un-utilized privilege leave will be encashed till the last working day of the employee. Encashment will be allowed to Full time employees in cases of retirement, resignation and simple termination (termination other than on account of fraud, forgery or misconduct). Benefits: Group life Insurance: The Faysal Bank is concerned about its employees family and provides Life insurance. All Employees irrespective of their grade level or experience with FBL are insured under the Group Life Insurance scheme in the event of early and untimely death and cover up to maximum grade of Rs.5.0 million. The employees are insured against Accidental/Natural death, Permanent/ partial disability, Temporary/ total disability (accident only) & Terminal illness benefit (natural). FBL is responsible to arrange for the insurance of the employee and updates the insurance company in case of separation of the employee. Medical Coverage & Hospitalization Insurance: The medical policy of Faysal Bank is not only for the employee working at FBL but also for his/her spouse and children (up to the age of 21 years only). Though, the policy for an employee on Bank Contract is only for himself rather than the whole family. All full-time employees and those on Bank Contract shall be paid an outpatient reimbursement of ten percent (10%) of basic salary per month with upper and lower limits set as per policy from time to time (currently minimum Rs. 800/- per month and maximum Rs. 7,000/- per month). FBL also provides a hospitalization insurance cover to its permanent employees and their dependents i.e. if an employees spouse is working for another firm, the spouse is not entitled for the reimbursement. In cases when panel hospitals are not used, FBL provides the cost of hospitalization fees up to the limit stated in the policy based on employee grades. Full-time employees are required to ensure that details of all immediate family members are submitted to HR Function. Club Membership

Faysal Bank has a club membership facility for its employees, which is restricted from Senior Executive Vice President to the Senior Vice President. The monthly subscription fee is reviewed periodically. The SEVP is entitled to pay Rs. 3000/- as a two month subscription fee, EVP is required to pay Rs. 1500/- as one month subscription fee and for SVP one month subscription fee is Rs. 1000/Fixed Bonus: All employees: permanent, on probation, Bank contract are eligible for the fixed annual bonus. For Clerical/Non Clerical employees (Workman Cadre): The period of fixed annual bonus starts from January 1st to December 31st which constitutes one gross salary per calendar year disbursed on September 1st of that calendar year. An employee should have completed a minimum of ninety calendar days of the bonus year to be eligible for this facility even if he is a newly appointed employee. For employees on probation, his services shall be confirmed with the bank on the day of bonus disbursement and for the employees facing disciplinary issues are not entitled for any bonus till the conclusion of that issue. In case an employee wishes to resign and serves notice period on or before the date of annual disbursement, will be eligible to receive annual bonus on basis of their services till the last working day. The employees working as officers and under management cadre receive bonus on monthly basis from the date of joining unlike employees under the workman cadre i.e. drivers, security guards, etc. Provident Fund: A permanent employee receives 10% of his Basic Salary as Provident Fund on a monthly basis to match a similar contribution made by the employee towards the fund. As per the rules of FBL, every member on conclusion of service is entitled to receive from the provident fund; his/her own contribution plus the contribution of the bank with profit thereon. If an employee is dismissed from the bank on account of misconduct he/she is not entitled to Provident fund and stands to credit in his/her books of fund, provided that the workman cadre employee shall be entitled for provident fund in case of dismissal. The employees outstanding loan shall be credited by the bank before the disbursement of the provident fund amount. Gratuity Funds: Gratuity is a scheme to motivate people to serve for longer durations with the same employer. Anybody who has served an organization for more than 5 years is eligible for Gratuity. An amount of one months basic salary per annum shall be contributed by the Bank towards the Gratuity Fund of a permanent employee. An employer who resigns from the service of the bank or is dismissed for misconduct before completion of five years is not entitled to receive any payment on account of Gratuity.

If an employee has an outstanding loan to be paid to the bank, the bank will first adjust that amount and then disburse the remaining amount to the employee. Staff loans: Faysal bank gives staff loans to promote an employ friendly environment. These loans are available to staff at subsidized rates. Deductions of both principal and profit amount due is then made from the staffs salary at every month. As a rule loan deductions from a staff salary should not exceed 33.33 percent of salary. Faysal bank offers four types of staff loans: House loan: To be eligible for a house loan an employee should be permanent and have a performance rating of no less than B in the past three years. In case an employee has not worked at Faysal Bank for the past three years, he should have successfully completed the probationary period, should have at least three years of banking experience including his tenure at Faysal Bank and lastly should have a performance rating of at least B if he has been part of any performance appraisals at Faysal Bank. The employee should at least 10% from his own equity and the remainder is paid by the bank. The time period for the loan is 25 years or retirement age of employee, whichever is less. In case the employee resigns or is asked to leave the loan amount plus profit becomes immediately due. In case of failure of the employee to pay back the amount the loan is then charged at commercial rates from there on. Personal loan: All full-time employees of the bank are eligible for the personal loan. The maximum amount that can be borrowed under this scheme is Rs. 500,000 or three gross salaries, whichever is lower. The loan is granted for a period of three years. An employ can apply for another personal loan after six months or repayment of the previous loans. Car loan: Employees who have received confirmation are eligible for a car loan as long as they have not been provided a car by the bank. The maximum amount of this loan facility is 10 million or 90% of the car valuation, whichever is lower. The loan is given for a period of five years. A staff member who has taken up a car loan can not apply for a motorcycle loan. Motorcycle loan: Employees in OG II and OG III grades of the bank can apply for a motorcycle loan. The maximum amount is Rs. 65,000 and the payback period is three years or retirement age, whichever is lower. Travel Policy The travel policy is there to facilitate employees on business travel. There is a different policy for domestic travel and a different one for international travel. The banks allows allowances for the journey, accommodation and travelling within the visited destination. The allowances are distributed in respect of grades; thus, the higher the grade the greater the allowance. Employees also have an option to avail an advance facility to meet their travelling needs. However, only reasonable advance is released by the bank and a request should be made five days in advance.

Research objectives: To gauge employee satisfaction levels at Faysal Bank and the reasons for satisfaction or dissatisfaction. To establish whether Faysal Bank has been able to transmit its culture to its employees. To understand the effect of various Faysal Bank policies on employee satisfaction levels. Hypotheses: Back office employees are more motivated than front office employees. The time spent in the organization is directly related to employee satisfaction. As time spent increases employee satisfaction also goes up. Limitations of the study: Our study is restricted to the main branch of Faysal Bank only. The required funds and permissions were not available to carry out a comprehensive study on the entire organization. The sample size of the survey was too small. Out of a population of 438 employees at the main branch including both front office and back office employees we were only given access to survey 28 employees. The surveys were carried out without the presence of a survey conductor. Thus there is a possibility that credibility of answers would be compromised in cases where the respondent was unable to understand a question. Population sample Our sample size was 28 and was a non-probability random sample. Efforts were made to ensure that maximum department participation could be achieved but restriction from the bank compliance department meant that we had to work with the resources we had. Methodology Our research was done through designing a research questionnaire which we distributed to our sample population. The survey was intended to provide answers to our research objectives and provide conclusions to our hypotheses. The first four questions were general questions inquiring about gender, department at Faysal Bank, job grade and time spent with the company. The fifth question inquired about employee satisfaction levels on a Likert scale. The sixth question was about employees perception of Faysal Banks culture. It was very important to see how the employees sees Faysal Banks culture from his own eyes. This would then help determine whether Faysal Bank has been able to transmit its cultural values over to its employees. The seventh and eighth questions were related to job description. They inquired the importance of the job description to the employee and then how consistent is the actual

job performed to the job description. If an employee considers job description to be important but his actual job and job description hardly match then it could affect his satisfaction levels. The next three questions were related to the settling in period at Faysal Bank. Their answers would provide information about how useful the employee found the Faysal Bank orientation, how difficult does the employee consider his settling in period to be, and how does the employee feel that Faysal Bank can make the settling in period easier. Question twelve and thirteen inquired about how well has Faysal Bank identified employee trading needs and have trainings been successful in fixing the problem they were supposed to tackle. The next three questions inquired about work goals and the role that employees feel goals play in their performance evaluation. Question seventeen was an open ended question asking respondents that if goals dont play a role in their performance evaluation what else does. Question eighteen then asks the same question but different phrasing that which factor plays the most important role in salary increases and promotion. Question nineteen inquires whether employees feel Faysal Bank is an organization that believes in promoting from within or dipping into the market when a vacancy arises at higher levels. The next three questions were intended at measuring the awareness of the spot reward scheme at Faysal Bank which is unique in nature at least in terms of the banking industry. Question twenty three inquired about employees perception of their participation in their performance evaluation. The last four questions check for employee satisfaction levels against different HR policies of Faysal Bank intended at improving employee motivation. One such scheme is the CEOs club which is a club for all five star performers and also includes a dinner with the CEO of the company itself. We wanted to analyze whether a dinner with the CEO is indeed large enough to affect employee motivation and satisfaction levels.

Survey analysis: From our employee survey we were able to conclude: That of 28 people who were surveyed, the mean satisfaction measured comes to 3.35: which is a fairly reasonable figure but a better understanding of this figure can only be made if we have a mean of satisfaction levels of other organizations in the banking industry. The employee perception of the culture at Faysal Bank has a huge affect on employee satisfaction level. o From our analysis we were able to conclude those employees who perceive Faysal Bank as an open and friendly place and where people share ideas have a mean satisfaction level of 4. o Employees perceiving Faysal Bank as a dynamic, entrepreneurial and creative place have a mean satisfaction level of 4.28 while employees perceiving Faysal Bank as a highly structured and formal place have a mean satisfaction level of 2.94. o As our last option only had one sample we could not conclude for sure because the sample size was too small. However, we can conclude from the mean averages above that employee perception has had a drastic affect on satisfaction levels. To judge whether FBL has been successful in identifying training needs of employees, again 28 people were questioned through survey where 16 employees from a total of 28 were neutral, getting it a mean of 3.07 o Employees have also not found the training sessions highly satisfying as the mean ranking for quality of trainings was 2.96 which tells us that most employees were neutral, meaning they either did not care enough or they did not believe that training is provided by every good organizations to their employees. Employees gave a mean rating of 2.68 when asked about how much input they are allowed to give in their performance evaluation as majority rated it between 2 and 3 (from a 1-5 scale and 5 being the highest). o The final ratings through the mean, shows us how low the figure really is and thus we can conclude that employees at Faysal Bank are not involved in their performance evaluation process and not much heed is paid to their point of view about their work and their circumstances. Of the 28 people surveyed, 42.5% of the sample population feels that increase in salary and promotions are based on performance. 22.5% feel that increases in salary and promotion take place on the basis of seniority and 27.5% feel that favoritism plays a role. Making it obvious that performance evaluation plays a vital role in deciding the promotion and salary increase for employees. The mean satisfaction level for front office is 2.86 while the mean satisfaction level for back office employees is 3.86, which means a difference of 25.93% between the

satisfaction levels of the two offices. The considerable difference within the mean satisfaction levels intrigued us and we decided to probe further on why this huge difference is there, the reasons will give us verification on to deciding whether our hypotheses stating that the level of satisfaction between front office employees is lower than the satisfaction level of back office employees due to culture and factors effecting the working environment. The reasons we identified are: o Apart from that when front office employees were surveyed, of a sample size of 14, 10 believed that FBL was a place which was highly structured and an extremely formal placed to work at. Motivational theories prove to us that people are more satisfied when the working environment of an organization that they work in, is open, friendly and dynamic. At FBL both the front office (71.43%) and back office (42.86%) believe that FBL has a formal working atmosphere. Proving our hypotheses correct about front office satisfaction level being lower than that of the employees at back office. o Back office employees feel that their job description matched their work more as compared to front office employees. The mean ranking given by back office employees for job description and actual work consistency was 3.86 while the front office employees gave a mean ranking of 2.57. o There was a 27% difference between the mean rankings of satisfaction levels with trainings provided by FBL. The back office employees were more satisfied (a rating of 3.43) as compared to front office employees (a rating of 2.5) with their training sessions. Making training a possible influential factor in proving our hypotheses correct. o 78.57% front office employees felt that they were judged against their goals during their performance evaluation as compared to only 57.14% employees of the front office. The percentage for performance evaluation is not evidence enough that our hypotheses can be proved right in establishing that front office people have a lower level of dissatisfaction than the back office employees. o Only 57.14% of front office employees believed that they were provided growth opportunities through internal growth as compared to 92.86% of back office employees. Thus front office employees have fewer opportunities to progress up the ladder at Faysal bank as compared to back office employees, proving our hypotheses right. o The mean rating given by back office employees for their say in their performance evaluation was 3.07 as compared to 2.28 given by front office employees. Thus front office employees feel more aggrieved by their role in their own performance evaluation as compared to back office employees proving our hypotheses right. o 58.82% back office employees feel that salary raises and promotions are based on performance evaluation as compared to only 30.43% of front office employees.

Thus the fact that most front office employees feel that promotion does not translate into rewards is a reason behind the lower satisfaction levels of front office employees, de-motivating them and providing us with evidence to our hypotheses. A general analysis was done from the 28 surveys filled by employees, measuring employee awareness on spot rewards, a policy which incentivizes individual contribution by giving monetary rewards as well as recognition to them. Out of 28 people who were surveyed 53.57% (15 of 28 people) acknowledged awareness while 46.43% (13 of 28 people) said they were unaware of the spot reward policy. Apart from that the survey also shows how spot rewards fulfill the purpose of motivating people to perform excellently, by showing that only about 2 of 28 people surveyed had ever gotten spot reward (7.14%). A relationship is also shown between the number of years employees have worked and their satisfaction. A relationship that proves as inverse, for the number of years worked when increase, the satisfaction amongst people goes down. From the survey we see that, of 14 employees who are working for less a year of which 7 people are satisfied amongst and only 3 are dissatisfied, on the other hand 7 of these 28 employees are working for 5 or more years of which 3 employees are satisfied and 4 employees are dissatisfied. o By taking out the mean of people working over the past three years we can deduce that for two extremes, people working for less than a year and people working for more than five years,(3.57 > 2.85) as the number of years worked increases the satisfaction level goes down. o The difference in people working for less than a year and more than 5 years also portrays the turnover rate of employees at FBL as of 28 people only 7 people have been working at FBL for more than 5 years. o This proves our hypotheses as wrong, where we assumed that the time spent in the organization is directly related to employee satisfaction and as time spent increases employee satisfaction also goes up. Another analysis that we have done maintains a relationship between dissatisfied employees and whether the other factors such as settling period at FBL, internal growth opportunities, performance evaluation and group life insurance affect employee judgment. Of the 8 employees who were found dissatisfied, a further link was developed between dissatisfaction and settling period for the employees once they were newly hired. Of the 8, 6 employees believed that the settling period at FBL was difficult (75%). Of the 8 employees from the dissatisfaction sample, 25% (2 of 8 employees) say that growth opportunities are given at FBL through internal recruitment, while 75% (6 of 8 employees) say that growth opportunities are not given through internal recruitment to the employee.

This shows that one of the main reasons for employees at FBL being dissatisfied might be due to employee perception that growth opportunities are not available and that the organization prefers to hire externally when vacancies open at management positions. Of the 8 dissatisfied, 50% (4 of 8 people) believe that FBL provides enough coverage in the form of insurance while the other 50% believe the coverage from insurance is unsatisfactory. o Due to such an equal division between the satisfied and dissatisfied employees, a link can not really be made in deciding whether group life insurance coverage plays a hand in making the employees dissatisfied or not. Of the 8 dissatisfied, we tried to make a link to see whether performance evaluation against SMART goals played a role in employees dissatisfaction. o This link again can not really be proven because the percentage of dissatisfied people are equally distributed in half with 50% (4 of 8 employees) saying that it was evaluated accordingly, while the other 50% saying that it was not evaluated accordingly. One of the most important parts of our survey was to decide whether employees at FBL believed promotion and increase in salary was done according to their hard work, or due to external factors like seniority and favoritism. o This would show the motivation to work harder if the employees trusted the management to have a fair and equal system of performance and rewards appraisal. o Of the 8 dissatisfied, 33.33% believed that seniority (measured by the number of years served in the company) played role in deciding an employees promotion and salary increase. 25% believed that the performance evaluation done at the end of each year actually decides the promotion and salary increase and 41.67% believed that favoritism of employees by higher management was a deciding factor in increment in salary and promotion. Thus a major source of dissatisfaction is the employee perception that factors other than performance affect salary increment and promotions.

Recommendations: Faysal Bank should work on the satisfaction levels of its front office employees. Front office employees are those that have a direct interaction with its customers and if Faysal Bank wishes to maintain its excellent level of customer service that its prides itself upon, it is essential that steps be taken to improve their satisfaction levels. For this purpose we suggest: o More formal and informal meetings need to be arranged between the front office and back office staff so that their positive culture perception can be transferred to the front office employees also. o The domains of front office employees need to be extended and they should be allowed more freedom on the job so that their perception of Faysal Bank having a formal culture can be changed. This is important as this perception is having a negative impact on their satisfaction levels. o Front office employees need to be involved in the decision process for their training needs. A majority of them believe that their needs are not being identified properly and by involving them in the need recognition process rather than just relying on the line manager, their motivation levels can be improved as the employee will feel that the organization is taking a personal interest in him. Employees should be more involved in their performance evaluation. Line managers and departmental heads should sit down with employees, tell them their goals and how they have performed against it and inform them of why they were given a particular evaluation. This would not only make the evaluation process more transparent but also prevent employee from feeling that other factors than performance affect salary increments and promotion. An email should be circulated every week for the next month throughout the Faysal Bank network to inform employees of the spot rewards policy as 46.43% of the population is unaware. An employee reward scheme based on seniority should be enacted to prevent the falling satisfaction levels of experienced employees of Faysal Bank. Their experience of the Faysal Bank way of working and culture is highly valuable and thus efforts should be made to improve their satisfaction levels before they become too de-motivated and decide to leave the organization. Our analysis of the surveys showed that none of the eight unsatisfied employees had an easy settling period. Thus we can see a strong relationship between settling in period and dissatisfaction. For this purpose we suggest that Faysal Bank explore more ways to help employees settle in better. Our suggestions include but not restricted to: o Mentor-ship programs o More informal gatherings with colleagues in the settling in period o More interaction with senior management

Feedback on recommendations from RVP HR Function Freedom for front office employees is difficult to achieve as in most cases they have to follow rigid process guidelines in order to ensure standardization of service across numerous branches. As for training needs, Faysal Bank feels that line manager with his experience and understanding of what is required from a particular job is a better judge of the training needs of employees in terms of what is required from them during a particular job. An employee reward scheme for senior employees would go against the Faysal Bank philosophy of increased compensation and promotion on merit only. Even though Faysal Bank understands the importance of these seasoned campaigners it is also highly important to sustain their culture of no discrimination except on performance when rewarding employees. Informal gatherings are currently encouraged for new employees. However, banking hours and hectic schedules mean that these plans never substantiate. The suggestions for improving the settling in period will be researched and looked into but will only go through once a proper cost-benefit analysis is done on every suggestion.