The impact of employee motivation on the performance of financial institutions in Rwanda. A case of Bank of Kigali PLC within the period of 2020-2023”

Abstract

The study was about the impact of employee motivation on the performance of financial institutions in Rwanda. A case of Bank of Kigali PLC within the period of 2020-2023. Specifically the study determined the effectiveness of motivation strategies applied by Bank of Kigali PLC, and found out the effects of motivation strategies to the financial performance of Bank of Kigali PLC. In virtue to the main purpose of this study, researcher designed an appropriate research methodology and used the interview, documentary and questionnaire techniques to collect and analyze relevant data which allowed the researcher to obtain the following findings: regarding the effectiveness of motivation strategies applied by Bank of Kigali PLC, the results shows that almost all respondents with 90% are very satisfied with their current job in bank of Kigali PLC and 10% are satisfied with their current job.it was also mentioned that 56% are feeling motivated to perform their duties at bank of Kigali PLC. On the issues of the factors mostly contribute to their motivation, researcher revealed that the salaries and development are ranked as the most important motivational factor in this bank where 36% pointedit. OntheissuesoffinancialperformanceofBKresultsshowsthatfrom2020upto2023 the ratios of net profit margin 37.60%; 35.98%; 31.23% and 33.35 respectively. Also from 2020 up to 2023, the ratios of Return on Equity are as follow: 16.90%; 14.86%; 18.16%; 18.72% and 20.42 respectively. On the other side the effects of motivation strategies to the financial performance of Bank of Kigali PLC was assessed and results shows that the majority of respondents with 64% rate their overall performance as very good and 36% lank it as excellent because of how they are motivated. Also, all respondents with 88% of the total respondents strongly agreed that they believe that their motivation levels has an impact on their productivity and performance. On the other side, the majority of respondents with 66% strongly agreed that motivated employees contributed to better customer services and 34% agreed with this statement. It is also observed that the majority of respondents with 55% confirmed that employee motivation influenced Bank of Kigali’s financial performance. Therefore, all these allowed the 13 researcher to confirm the second hypothesis stipulating that “employees’ motivation strategies has a positive and strong effects on the performance of Bank of Kigali PLC”