The Role of Employees Motivation to the Profitability of Banking Institutions in Rwanda. Case Study Bank of Kigali PLC, headquarters, Period: 2020-2023

Abstract

The aim of this study is to show the the the effect of employees’ motivation to the profitability of banking institutions..During the period of Four years means from 2020 up to 2023, based on the specific objective of the study. The first objective is to examine the effectiveness of employee’s motivation in Bank of Kigali Headquarters.to analyze the contribution of employees’ motivation to the performance of Bank of Kigali Headquarters The fourth chapter is concentrates on analysis, interpretation and presentation of findings. Finally, this study is ended with the general conclusion and suggestions. The table 4.10 shows that 61.9% of the respondents strongly agreed and 33.8% of the respondents agreed that BANK OF KIGALI HEADQUARTERS gave them bonus as motivation strategy when employees meet the set targets, only 1.3% agreed were Neutral with this none disagreed with this. Looking at the results present in the table 4.12 it is clear that the majority of respondents with 73.5% of respondents strongly agreed that working condition from BANK OF KIGALI HEADQUARTERS motivate them to work hard, and 25.2% agreed with this statement. The table 4.15 shows the Return on Assets ratio during the covered period. From 2020 up to 2023.The ratio of Return on Assets are 2.95%; 2.95%; 3.22% and 3.52% respectively. This means that, in 2020 for 100 RWF of invested they got 2.95RWF; in 2021 for 100 RWF of invested they got 2.95RWF; in 2022 it got 3.22RWF and in 2022 got 3.52Rwfs The table 4.16 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. This means that, in 2020; for the 100Rwf investors have invested in bank, they generated in 14.86Rwf of benefit, in 2021 for the 100Rwf investors have invested in bank, they generated in 18.16Rwfof benefit, and in 2022 for the 100Rwf investors have invested in bank, they generated in 18.72Rwf of benefit and in 2023 for100Rwf investors have invested in bank, they generated in 20.42Rwf of benefit. BANK OF KIGALI PLC management should improve bonuses are given to employees as some employees said that there is no recognized structure to distribute bonuses. BANK OF KIGALI PLC management should have regular performance appraisal with their employees with discussions so as to review past performance, and set targets for future performance