Financial Crisis and University Faculty Job Satisfaction in Khyber Pakhtunkhwa

Abstract

This study investigated the impact of financial crisis on teachers' job satisfaction, performance, and motivation at public universities in southern Khyber Pakhtunkhwa, Pakistan. Employing a descriptive design, data were collected from 470 respondents across five universities using a validated questionnaire (α = 0.74). Findings revealed significant negative correlations between financial crisis and all dependent variables. Regression analysis confirmed that financial crisis significantly predicted decreased job satisfaction (β = -0.42, p < 0.01), reduced performance (β = -0.38, p < 0.01), and lower motivation (β = -0.45, p < 0.01). The financial crisis explained 18%, 14%, and 20% variance in satisfaction, performance, and motivation respectively. All six null hypotheses were rejected, confirming substantial negative impacts. Teachers reported moderate satisfaction (M = 3.42) and performance (M = 4.12) but lowest motivation (M = 3.28). The study concluded that financial constraints significantly undermined educators' professional well-being, with motivation emerging as the most vulnerable variable. These findings necessitate targeted policy interventions including predictable salary disbursement, protected education funding, alternative revenue generation, and enhanced non-financial recognition to mitigate adverse effects on higher education quality in the region.

Keywords: Financial crisis, job satisfaction, teacher performance, teacher motivation, higher education, Khyber Pakhtunkhwa