Contribution of Employee’s Motivation to the Financial Performance of Commercial Banks in Rwanda case study: bank of Kigali Main Branch (2020-2023)

Abstract

The general objectives of this study is to assess the contribution of employees ‘motivation to the financial performance of commercial banks in Rwanda with a case study of Bank of Kigali PLC, headquarter branch (2021-2023) The first objective is to determine the effectiveness of employee’s motivation in Bank of Kigali Ltd, headquarter branch The second objective was to examine the contribution of employee’ motivation to the financial performance of Bank of Kigali PLC, headquarter branch Fourth chapter is concentrates on analysis, interpretation and presentation of findings. Finally, this study is ended with the general conclusion and suggestions Looking at the table 4.5 it is clear that the majority of respondents representing 81.5% strongly agreed that Bank of Kigali Headquarters used training opportunities to motivate its employees. And 18.5% respondents agreed with this Normally; trainings are given to employees to enhance the capacity or skills of employees to improve the performance of Bank of Kigali Headquarters. Employers who want to harness the full value of their employees and foster loyalty and retention will find that training is a winning prospect for all involved. And this is what Bank of Kigali Headquarters do to its employees. The table 3.7 shows that 84.6% of the respondents strongly agreed that Bank of Kigali Headquarters gave them bonus as motivation strategy when employees meet the set targets, 13.1% agreed with this and 2.3% disagreed with this. But some employees suggested that the management of Bank of Kigali Headquarters should consistently revise its bonus payment practice in order to maintain the present employee satisfaction. From 2020 up to 2023 the ratios of net profit margin 37.60%; 35.98%; 31.23% and 36.36% respectively. These good results were obtained due to the effort made by employees who are very courageous to work hard, to enable the bank to succeed because the bank shares with them some benefits through motivation they receive. The table 4.192 shows that from 2020 up to 2023, the ratios of Return on Equity are as follow: 14.86%; 18.16%,18.72% and 20.42% respectively. Bank of Kigali PLC should improve the way of rotating its employees to facilitate them to perform on the assigned activities as some employees said that employee rotation is not easy in this bank.