Employee motivation is vital for the accomplishment of organizational goals. In this regard, manager-employee relationships become important for achieving employee motivation by applying effective styles of leadership. Managers vary in their values, attitudes and behaviors and the way they lead their followers. This study examines the value and impact of transactional, transformational and Laissez-faire leadership styles on motivation of banking sector employees. A sample of 100 employees from 5 different commercial banks was surveyed and empirical analysis showed that all three leadership styles have significant positive impact on employee motivation. Implications and suggestions for practice are presented.