Abstract:
The topic under this study is made of “Effect of Employees‟ Motivation to the Profitability of Banking Institutions in Rwanda. Case study: I&M BANK HEADQUARTER within the period of 2019-2022.The research problem was how to achieve employees performance in banking industry in the era of competitive environment .To conduct this research the objectives of that were formulated are to examine the effectiveness of employees motivation strategies applied by I&M Bank PLC and to analyze the contribution of employees motivation strategies to the performance of by this financial institution. Various methods like random sampling method and purposive sampling technique were used in gathering information related to this. Looking at the different results presented in various tables in chapter four, we found that at I&M Bank PLC, various strategies are applied to motivate the employees and this contribute more to the I&M Bank Plc performance. Concerning the trend of deposit of I&M Bank PLC we find that it was to 29.5% in 2019 to 10.7% in 2022;the trend of loans granted varied from 19% in 2019 to 4.01% in 2022;the net income varied from - 15.95 in 2019 to -4.3% in 2022;the total equity varied from 27% in 2019 to 15 % in 2022;profit margin ration varied from 22.4% in 2019 to 23.8% in 2022;the return on assets varied from 1.93 % in 2019 to 1.89% in 2022; and the ratio of return on equity varied from 14.35% in 2019 to 13.05 % in 2022.Referring to the table 4.20, the Pearson correlation coefficient between employees motivation and the performance of I&M Bank PLC is 0. 740 with p-value of 0.009 < 0.01.This means that the employees motivation and performance of I&M Bank PLC are positive moderately correlated ( i. e 0.5< 0.74<0.8).According to these, the researchers decided to reject H20 in favor of H2a which means that employees motivation contributes significantly to the performance of I&M Bank PLC.
