The Influence of Leadership Support on Employee Financial Performance: The Mediating Role of Organizational Commitment

Abstract

This study examined the influence of leadership support on employee financial performance and investigated the mediating role of organizational commitment among employees working in Habib Bank Limited (HBL), United Bank Limited (UBL), and Meezan Bank Limited in Pakistan. A quantitative cross-sectional research design was employed, and data were collected from 145 employees using a convenience sampling technique. Data were gathered through a self-administered structured questionnaire based on a five-point Likert scale. The collected data were analyzed using reliability analysis, Pearson product-moment correlation, regression analysis, independent-samples t-test, one-way ANOVA, and mediation analysis using bootstrapping. The findings showed a significant positive relationship between leadership support and organizational commitment (r = .624, p < .001). Leadership support significantly predicted employee financial performance (β = .671, p < .001) and explained 45.0% of its variance (R² = .450). Significant differences in employee financial performance were found across gender (t = 2.31, p = .021), age (F = 6.84, p < .001), education (F = 4.73, p = .003), work experience (F = 6.19, p < .001), and job position (F = 7.63, p < .001). Mediation analysis further demonstrated that organizational commitment significantly mediated the relationship between leadership support and employee financial performance, with a significant indirect effect and a bootstrap confidence interval that did not include zero. These findings indicate that leadership support can influence employee financial performance by creating a supportive work environment and strengthening employees’ psychological attachment to their organizations. The study highlights the importance of supportive leadership practices in strengthening employee commitment, enhancing work-related performance, and contributing to organizational financial objectives. The findings may assist managers and human resource professionals in developing workplace strategies that promote effective leadership, organizational commitment, and improved employee performance. The study further contributes to organizational research by integrating leadership support, organizational commitment, and employee financial performance within a single explanatory framework.