Abstract:
This study examines the impact of employee motivation on the organizational performance of BAHO SACCO, a microfinance institution in Rwanda. The research aimed to identify the motivational strategies employed by BAHO SACCO, assess how employee motivation influences job satisfaction, and evaluate its effect on key performance indicators such as loan portfolio quality, client satisfaction, and operational efficiency. The study utilized a mixed-methods approach, combining quantitative data from structured questionnaires with qualitative insights from interviews, involving a total of 11 employees. Descriptive statistics were used to analyze the data. The findings revealed that career development opportunities and work-life balance initiatives are the most positively received motivational strategies, contributing significantly to job satisfaction. However, dissatisfaction was noted regarding financial incentives and the effectiveness of training programs. The study also found that high employee motivation strongly influences organizational performance, particularly in improving the quality of the loan portfolio, client satisfaction, and operational efficiency. Motivated employees were found to process client requests and transactions more efficiently, directly benefiting BAHO SACCO’s operational success. In conclusion, the research highlights the importance of enhancing financial incentives and training programs to further boost employee motivation and performance. Key recommendations include revising financial rewards, investing in tailored training programs, maintaining career development opportunities, and fostering a positive work culture to sustain high levels of motivation and optimize performance at BAHO SACCO.
