Effect of Employee Engagement on The Performance of Microfinance Banks: A Case of AB Bank Rwanda Plc.
DOI:
https://doi.org/10.53819/81018102t7033Abstract
This research project investigated the relationship between employee engagement and the performance of AB Bank Rwanda Plc, focusing on four specific objectives: evaluating the impact of internal communication on employee engagement, analyzing the influence of leadership, assessing the connection between employee well-being and engagement, and examining the effect of training and development on employee growth. A combination of descriptive and correlational research designs was employed to determine the effect size of these objectives. The study targeted a population of 257 individuals, with a sample size of 157 respondents calculated using the Yamane formula, selected through simple random and purposive sampling methods. Data was collected using questionnaires and documentation. The findings reveal valuable insights not only for AB Bank Rwanda Plc but also for the broader microfinance sector in Rwanda. The study showed that staff recognized the positive effects of internal communication, evidenced by a beta value of 0.742 (p < 0.05), indicating a strong association between e-tendering and the bank's organizational performance. Additionally, there was a substantial positive link between leadership and organizational performance, with a beta value of 0.639 (p < 0.05). The regression analysis further demonstrated a strong positive correlation (beta = 0.705, p < 0.05) between employee well-being and organizational success at AB Bank Rwanda Plc. Lastly, the analysis indicated a significant positive relationship between training and development and organizational performance, shown by a beta value of 0.660 (p < 0.05). The study confirms the positive relationships between internal communication, leadership, employee well-being, and training and development as critical factors contributing to the performance of AB Bank Rwanda Plc. These findings suggest strategies for optimizing operations and enhancing employee engagement within the microfinance sector.
Keywords: Employee Engagement, Organizational Performance, Internal Communication, Leadership, Training and Development
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