Non-Financial Incentives and Employee Retention in Bank of Kigali Plc, Rwanda

Authors

  • Ms. Damalie Tumushime Mount Kenya University, Kigali, Rwanda
  • Dr. Eugenia Nkechi Irechukwu (PhD) Mount Kenya University, Kigali, Rwanda

DOI:

https://doi.org/10.53819/81018102t2262

Abstract

The general objective of this research examined effect of non-financial incentives on workers retention in banking sector using a case of the Bank of Kigali Plc in Kigali City. The specific objectives were to assess effect of flexible working arrangement, career development, employee recognition, and job promotion on employee performance in the bank of Kigali. The study targeted 370 persons from which a sample of 193. The research tools were a questionnaire, and interview guide. The researcher used descriptive statistics to generate frequencies, percentage, mean, and standard deviation for dependent and independent variables. The study used inferential statistics to produce correlation between variables and to establish a regression size effect based on specific research objectives. Qualitative information was assessed through the use of content analysis in term of items developed from interview transcript. Results show that 40.7% strongly agree that   the use of shift work in the bank of Kigali, 50.9% strongly agreed the application of part time.  Results on flexi time demonstrated a negative and insignificant correlation between flexi time and team work (r=0.976, p-value =0.002). To the second objective, 37.0% strongly agree that they have received training after its design and planning, 42. 8% strongly disagree that it was very important to have scholarship. Results for the correlation between the scholarship and team work (r=-0.134, p-value= 0.041) was negatively statistically significant. Thirdly, results show that 36.6%, contend that they were appreciated by the bank of Kigali, 54.9% contended an increase in responsibility. Appreciation was not associate with effectiveness (r=0.076, p-value =0.249) and appreciation and project commitment (r=0.028, p-value=0.667). The fourth objective established that 37.0% strongly agree the existence of an increase in responsibility, 42.8% strongly disagree that it was very important of change of facilities, 34.0% strongly agree that they change of positions. Results on change of facilities, demonstrated a negative and insignificant correlation between change of facilities and team work (r=0.776, p-value=0.002).  The study recommends that the Bank of Kigali should offer trainings programs and comply with factors that encourage the spirit of turning over. The management should be provided training to enhance and ameliorate their managing styles. The management should involve their employees when they make decisions, once you involve people in decision making they put in more effort because they are part and parcel  of decisions that have been taken and that may increase their level of commitment in the organization. Further researches  should done  within further domain of activities  in to participate  in acquiring more and accurate data related to the turnover rate  and to adopt more adequate and conducive retention strategies.

Keywords: Non-Financial Incentives, Employee Retention, Bank of Kigali Plc, Rwanda

Author Biographies

Ms. Damalie Tumushime, Mount Kenya University, Kigali, Rwanda

School of Business and Economics, Master of Business Administration (Human Resources Management Option), Mount Kenya University, Kigali, Rwanda

Dr. Eugenia Nkechi Irechukwu (PhD), Mount Kenya University, Kigali, Rwanda

Mount Kenya University, Kigali, Rwanda

References

Ange de la Victoire, D. (2021). Rwanda aims to have 20% of all buses transition to electric

Anekwe, E.I., & Ifeanyichukwu, N. (2019). The monetization of fringe benefits and employee performance in a public service organization in Anambra State. International Journal of Academic Management Science Research (IJAMSR), 2 (10), 55-61

Armstrong, M., (2020). Human Resource Management Practice.9th edition. McGraw Hill. London

Bashir, M. F., Jiang, B., Komal, B., Bashir, M. A., Farooq, T. H., Iqbal, N., & Bashir, M. (2020). Correlation between environmental pollution indicators and COVID-19 pandemic: a brief study in Californian context. Environmental research, 187, 109652.

Chen, Z. (2020) Promotion incentive, employee satisfaction and commercial bank performance. Open Journal of Social Sciences, 8, 108-123.

Coccia, M. (2019). Intrinsic and extrinsic incentives to support motivation and performance of public organizations. Journal of Economics Bibliography, 6(1), 20- 29

Constantine Abenawe (2022). Evaluation of the relationship between socio-economic status and the quality of education in secondary schools in Ibanda District. IAA Journal Arts and Humanities 9(1):83-94, 2022.

Constantine Abenawe (2022). Social Economic Status in Selected Secondary Schools in Ibanda District Uganda. IAA Journal of Education 8(1):73-89

Febriko Robianto1, Erni Masdupi2, Syahrizal (2019). The Effect of Career Development, Compensation, Work Environment and Job Satisfaction on Work Engagement. Advances in Economics, Business and Management Research, volume 124

Gaju, O.A & and Nkenchi,I.E(2021). Effect of employee training on the performance of Rwanda Air. International Journal of Advanced Scientific Research and Management, Volume 6 Issue 6, June 2021

Khan, Z., Soundararajan, V., Wood, G., and Ahammad, M. F. (2020). Employee emotional resilience during post-merger integration across national boundaries: Rewards and the mediating role of fairness norms. Journal of World Business, 55(2), 100888.

Kipkoech, K.V (2018). Flexible working arrangements on employee Performance in Kericho county referral hospital, Kenya. Research project submitted to the school of business in partial fulfillment for the requirement of degree of master of business administration (human resource Management option) of Kenyatta University. Nairobi, Kenya.

Lartey, F. M. (2021). Impact of career Planning, employee autonomy, and manager recognition on employee engagement. Journal of Human Resource and Sustainability Studies, 9(02), 135.

Mugabekazi, E. (2022). Influence of Employees Motivation on Performance of Micro Finance Institutions in Rwanda. A case of Letshego-Rwanda. International Journal of Scientific Research and Management (IJSRM).Volume/10/Issue/11/Pages/2022-4124

Muhammad. A, Mohammad. A. R & Lei. S, (2018), empowering leadership and employee performance: a mediating role of thriving at work. International journal of Asian Business and Information Management

Ngwa, W. T., Adeleke, B. S., Agbaeze, E. K., Ghasi, N. C., and Imhanrenialena, B. O. (2019). Effect of reward system on employee performance among selected manufacturing firms in the Litoral region of Cameroon. Academy of Strategic Management Journal, 18(3), 1-16

Niwemahoro, W. (2020). Flexible work arrangements and organization productivity: Study of KCB Bank, Rwanda. International Journal of Scientific and Research Publications, Volume 10, Issue 12, December 2020.

Njiraine, D. (2019). Financial incentive as a yardstick for employee performance: the case of university of Nairobi. European Journal of Business and Management, 11(8), 78-87

Okpara, A. (2021). Fringe Benefits and Employees' Performance in the Bank of Industry Limited, Lagos. Gusau International Journal of Management and Social Sciences, 4(3), 18-18

Ondhowe, F. A., Kadima, J. M., & Juma, D. (2021). Influence of recognition practice on employee performance at Lake Victoria South Water Services Board in Kisumu, Kenya. The Strategic Journal of Business & Change Management, 8 (1), 650 - 661.

Oni, O., Oshiotse, J. & Eziam, A. (2019). Influence of Non- Monetary Rewards System on Library Staff Performance in Polytechnics in Nigeria. In: T. Umar, ed., Multifarious Issues in Nigeria Today: Multidisciplinary Approaches, 1st ed. Akure: Science and Education Development Inst., Nigeria, pp.112-123

Performance in Selected Public Institutions in Rwanda. International Journal of Academic Research in Business and Social Sciences 1 (2),7-22

Ratemo V, Makhamara,F & Bula H (2021). Career development and employee performance in Kenya forestry research institute headquarter In Muguga, Kiambu County

Rulisa C, Namusonge G, Iravo.M.A (2022). Influence of Incentives and Rewards on Employee

Saharuddin1 and Sulaiman (2016). The Effect of Promotion and Compensation toward Working Productivity through Job Satisfaction and Working Motivation of Employees in the Department of Water and Mineral Resources Energy North Aceh District. International Journal of Business and Management Invention. Volume 5 Issue 10 October. 2016. PP—33-40

Sang B. C. (2021). Employee retention strategies and employee performance in tea industry: a case of James Finlay Kenya limited, Kenya. Research project submitted to the school of business in Partial fulfilment of the requirements for the degree in Master in business administration (human resource management) of Kenyatta University.

Saud Napitupulu, Tulus Haryono, Asri Laksmi Riani, Hunik Sri Runing Sawitri& Mugi Harsono (2017). The impact of career development on employee performance: an empirical study of the public sector in Indonesia. International Review of Public Administration Volume 22, 2017 - Issue 3

Sharafizad, J., and Redmond, J. (2020). Discretionary effort of higher education sector employees: motivators and inhibitors. Studies in Higher Education, 45(6), 1261-1279

Simmons M, L (2020). Employee Retention Strategies in U.S. College and Universities. Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University.

Sugiyanta, Y., Suyono, J., Elisabeth, D. R., Chikmawati, Z., &Zulkifli, C. Z. (2021). The Mediating Role of Work Environment in Relationship between Leadership and Job Promotion on Employee Performance. Proceedings of the Annual International Conference on Industrial Engineering and Operations Management Singapore. 1-17.

Syed, D. (2019). Impact of employees' recognition, rewards and job stress on job performance: the mediating role of perceived organizational support SEISENSE Journal of Management, 2(3), 1-10.

Tasman, T., Siregar, Z. M. E., & Nasution, M. F. (2021). The influence of work environment, promotion, and job satisfaction on employee performance. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(3), 4026-4031.

Tom Mulegi (2022). Evaluation of the Skill Mix of Health Professionals in Government Regional Referral Hospitals in Uganda. IDOSR Journal of Arts and Management 7(1): 43-68.

Tsalavoutas, I., Tsoligkas, F. & Evans, L. (2020). Compliance with IFRS mandatory disclosure requirements: a structured literature review. Journal of International Accounting, Auditing and Taxation, 40, 10-28.

Waktola, B. S. (2019). Boosting employee performance; effects of working environment on employee’s performance: Case of Ethio-Telecom in Ambo Branch. Global Journal of Management and Business Research.

Yamane, T. (1967). Sample Size Formular. In The Annual International Conference on Geographic Information Science (pp. 16-83).

Yamin, M., Sakawati, H., & Putri, N. (2020). Position Promotion and Employee Performance in the Regional Secretariat of Makassar City. JurnalIlmiahIlmuAdministrasiPublik. 9. 327.

Yuliza, M., Desri, M., &Nasfi, N. (2021). Effect of Work Movements, Job Promotion, and Compensation towards Employee Performance. Jurnal Akuntansi, Manajemen dan Ekonomi, 23(1), 9-18.

Zeng, H., Zhao, L., & Ruan, S. (2020). Mentoring affects protégés' adaptive performance in the workplace: roles of thriving at work and promotion focus. Frontiers in Psychology, 11, 2271.

Zhou, Y., Zhang, Y., & Montoro‐Sánchez, Á. (2011). Utilitarianism or romanticism: the effect of rewards on employees' innovative behaviour. International Journal of Manpower, 32(1), 81-98.

Zirra, C. T. O., Mambula, C. J. I., & Anyatonwu, P. (2019). Impact of fringe benefits on employee performance: A study of Nasco Group, Jos Plateau State. International Journal of Education and Social Science, 6(1), 25-33.

Downloads

Published

2023-11-08

How to Cite

Tumushime, D., & Irechukwu, E. N. (2023). Non-Financial Incentives and Employee Retention in Bank of Kigali Plc, Rwanda. Journal of Human Resource & Leadership, 7(6), 22–41. https://doi.org/10.53819/81018102t2262

Issue

Section

Articles