The contribution of employees motivation to the performance of Financial Institutions in Rwanda, case study bank of Kigali Plc/ headquarter (2020-2023)

Abstract

The general objective of this study is to investigate the influence of employee motivation to the performance of financial institutions in Rwanda The specific objectives of the study were . To examine the employees motivation factors used by Bank of Kigali Main branch. To analyze the influence of employees motivation on the performance of Bank of Kigali PLC/ Main Kigali Population of 120 employees which make the sample of 53 employees of BK . The Fourth chapter of this study has been verifying the first hypothesis which states that there are motivation tools used by BK PLC . The chapter gives also the background of BK PLC as a case study of the study; the study also gives the background of the respondents. During the research the following results were obtained: Looking to the results of the study, 56 out of 80 either 70% of the total respondents are very satisfied with the salary motivation and 30% of the total respondents are satisfied with their salary motivation. The 62.5% of the total respondents affirm that BK PLC receive loan facilities especially education loan for their children and some of them to continue their studies as a motivation tool while 25% of the total respondents said that they get business loan in order to do their businesses and 12.2% of the respondents said that they have received overdraft. The Second Hypothesis of study intended to analyze the contribution of employees’ motivation to the profitability of BK PLC BK PLC got a lot of return in the period under the study; the study showed that the return on assets was, in 2020 the ROA was 2.9%, in 2021 the ROA was 3.2% , in 2022 ROA was 3.2% and 3.5% in 2023. This means that for 100 Rwf invested in assets in BK PLC has generated was generated as profit in 2020 was 2.9 % , in 2021 was 3.2% , in 2022 was 3.2%. And 3.5% in 2023 On the role of employee motivation tools on return on asset ratio indicated that BK PLC has participated in providing quality services such as ATM banking service to its customers which 14 are available and of good quality and the relationship between banking system and customer services showed a positive strong relationship of return on asset ratio in BK PLC . The table 21, indicates that for each Rwandan franc remaining after all cost and expenses have been deducted, BK PLC has earned , 39.4% in2021 , 15% in 2022 and 25.2 in 2023 this shows that the bank was able to cover all costs and expenses and was able to make profits from its operations during the period of study. From 2020 to 2023 Net Profit Margin ratio because of higher rate of investment BK PLC invests in Employee motivation tools. BK PLC has made good net profit margin ratio in the period of this study. 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 tools. Therefore, based on the above data, the second hypothesis which states that “Employees’ motivation contributes to the profitability of BK PLC” was verified and confirmed.