Muniba Atta2025-08-062025-08-062019-03https://escholar.umt.edu.pk/handle/123456789/4488Employee loyalty can be described as employees being devoted to the organization’s success and have faith in that working for this company is their best choice. The major aim of the research was to find out the mediating role of job satisfaction between High Performance Work Systems (HPWS) and employee loyalty in banking industry of Lahore, Pakistan. The researcher uses social exchange theory (SET) to support the relationship between high performance work systems and employee loyalty and job satisfaction. The researcher adopts quantitative research method and survey based study is used as a research strategy. The researcher uses a questionnaire as a research tool to collect the data for the research. The targeted population of the study are middle and upper level officers of the banking sector in Lahore, Pakistan. A sample size of 260 is selected and 260 questionnaires are circulated among the employees of different banks of Lahore, Pakistan. SPSS 21.0 is used to conduct the analysis of the data. The tests include descriptive analysis, reliability analysis, factor analysis, regression analysis and mediation analysis. After surveying the employees of the banks, the research shows the casual yet significant positive relationship between High Performance Work Systems (HPWS), employee loyalty and job satisfaction. Research helped banks to devise strategies to improve employee loyalty towards banks. Research also suggested that asking about employee’s opinion creates a sense of belonging towards the organization resulting in creation of Loyalty, employees should be engaged in job environment instead of just imposing orders on them they should be involved in the betterment of the organization.en-USThesis