Effect of employee’s satisfaction on performance of Nigerian microfinance banks
Abstract
The study investigates the nexus between employee satisfaction and the performance of selected Microfinance banks in Nigeria, with a focus on five banks in Osun State. It aims to discern the relationship between employee satisfaction and bank performance, while pinpointing key factors that influence employee satisfaction, such as prompt salary, job security, and fringe benefits. Utilizing a purposive sampling technique, data from 40 employees were collected through structured questionnaires, and subsequent analysis involved descriptive statistics and regression. Results indicate a robust positive correlation between employee satisfaction and bank performance, with prompt salary payment, job security, and fringe benefits emerging as significant influencers of satisfaction. The study underscores the importance of proactive measures by microfinance banks to augment employee satisfaction, particularly in these critical areas. Strengthening employee engagement is posited as pivotal for sectoral performance enhancement. By prioritizing the well-being and contentment of their workforce, microfinance banks can cultivate a conducive work environment conducive to heightened efficiency and effectiveness.
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Agha, A.S., Memon, M.A., and Shaikh, N. Impact of employee satisfaction on microfinance bank performance. 2019.
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Ali, P. Younas, A. Understanding and interpreting regression analysis. 2021. https://doi.org/10.1136/ebnurs-2021-103425
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Al-Shammari, M., Nasser, R. The Impact of Employee Job Satisfaction on Organizational Performance: A Case Study of Private Sector in Saudi Arabia. International Journal of Business and Management. 2018. № 13(2). Р. 91-100.
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Rolando GT. Government’s role in promoting social entrepreneurship. Being a paper presented at the 1st Anniversary of the Institute for Social Entrepreneurship in Asia. 2017.
Saleem, S., Majeed, S., Usman, M. Determinants of job satisfaction among healthcare professionals in public sector hospitals. International Journal of Academic Research in Business and Social Sciences. 2013. № 3(9). Р. 133-146.
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Sattar, A., Ali, H. The impact of leadership behavior on employee job satisfaction in banking sector of Pakistan. International Journal of Management and Applied Research. 2018. № 5(4). Р. 164-176.
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Staw, B. M., Rose, N. L. The dispositional approach to job attitudes: A lifetime longitudinal test. Administrative Science Quarterly. 1985. № 30(1). Р. 56-77.
Sykes, O.A. An Introduction to Regression Analysis. Coase-Sandor Institute for Law & Economics Working Paper. 1993. №. 20.
Thompson, A. W., Lane, T. S. Job Satisfaction: A Review of the Constructs and Measures Used in the Hospitality Industry. Journal of Hospitality and Tourism Management. 2014. № 21. Р. 1-14.
Toole, T. M. Job satisfaction and intrinsic factors: A study of workers in the United States. International Journal of Management and Applied Research. 2020. № 7(4). Р. 271-282.
Adeusi, S. O., & Olokoyo, F. O. (2019). Microfinance Banks and the Growth of Small and Medium Enterprises: An Empirical Investigation. European Journal of Business and Management Research, 4(5), 20-35.
Adeyemo, D. A. (2019). Employee perception of job satisfaction and organizational commitment in a Nigerian federal university. International Journal of Educational Management, 33(2), 307-323.
Agha, A.S., Memon, M.A., and Shaikh, N. (2019). Impact of employee satisfaction on microfinance bank performance:
Akhtar, MA, Islam, T, and Jahan, S (2017). Employee satisfaction and its impact on the performance of microfinance banks in Bangladesh. Journal of Applied Accounting and Taxation, 2(2), 17-28.
Amrani, A. K. (2020). Applicability of the Motivation Theories of Maslow, Herzberg and Vroom to Contemporary Business Organizations in Oman. International Journal of Economics, Business and Management Studies, 7(2), 202–213. Available at: https://doi.org/10.20448/802.72.202.213
Alexander Litchtenstein, B., and Janal, M. N. (2017). Job satisfaction and voluntary turnover among healthcare workers. Work, 57(1), 95-102.
Ali, P. and Younas, A. (2021). Understanding and interpreting regression analysis. 10.1136/ebnurs-2021-103425
Alshaikh, H. (2019). The Impact of Employee Satisfaction on Organizational Performance: A Case Study of Private Banks in Saudi Arabia. International Journal of Scientific Research and Management, 7(10), 304-312.
Al-Shammari, M., & Nasser, R. (2018). The Impact of Employee Job Satisfaction on Organizational Performance: A Case Study of Private Sector in Saudi Arabia. International Journal of Business and Management, 13(2), 91-100.
Amah, O. E., and Ahiauzu, A. (2014). Motivation and employee performance in organizations: A review. International Journal of Managerial Studies and Research, 2(7), 31-40.
Armentor, J. L., and Forsyth, C. J. (2015). Job satisfaction: The effect of work hours on work-life balance. Journal of Business and Leadership: Research, Practice, and Teaching, 11(1), 1-13.
Aveh, F. B., Dadzie, S. K., and Krah, R. K. (2019). Determinants of staff turnover in microfinance institutions: A case study of Ghana. International Journal of Research in Business and Social Science, 8(3), 13-29.
Bakare, A. S., & Fakunle, T. (2018). Assessing the Challenges of Microfinance Banks in Nigeria: A Case Study Approach. Journal of Finance and Bank Management, 6(3), 64-76.
Cook, S. (2008). The essential guide to employee engagement. London: Kogan Page.
Damij, N., Levnajić, Z., Skrt, V., and Suklan, J. (2015). Herzberg’s Two-Factor Theory of Job Satisfaction: An Integrative Literature Review. Economic Research-Ekonomska Istraživanja, 28(1), 118-130.
Frye, M. B. (2018). Job satisfaction and employee performance. Journal of Social Psychology, 158(2), 164-171.
Herzberg, F. (1959). The Motivation to Work. New York: Wiley.
Hira, M., and Waqas, A. (2019). Relationship between employee job satisfaction and performance: A study of banking sector in Pakistan. International Journal of Organizational Leadership, 8(3), 62-70.
Hussain, M., and Mujtaba, B. G. (2019). HR practices and job satisfaction in microfinance sector: Evidence from Pakistan. International Journal of Bank Marketing, 37(2), 497-514.
Iloh, V. E., & Ejiogu, A. (2021). Microfinance Banks and Economic Development in Nigeria: A Review of Literature. Journal of Economics and Business Management, 9(2), 87-102.
Iqbal, MA, and Ahmad, H. (2021). Impact of employee satisfaction on the performance of microfinance banks in Pakistan. Journal of the Academy of Accounting and Financial Studies, 25(2), 1-10.
Javid, M., Balouch, A., and Hassan, M. (2017). The determinants of job satisfaction and their impact on employee performance and turnover intentions. International Journal of Human Resource Studies, 7(2), 45-61.
Jegede CA, Kehinde J, Akinlabi BH (2017) Impact of Microfinance on Poverty Alleviation in Nigeria: An Empirical Investigation. Journal of Humanities and Social Science. Journals Bank Inc.
Kadushin, C., and Kulys, R. (2019). Job satisfaction and job performance in social work. Social Work, 64(2), 123-130.
Lawler, E. E., and Porter, L. W. (2017). The effect of performance on job satisfaction. Industrial relations: A journal of economy and society, 6(2), 316-324.
Meyer, J. P. (2019). Job satisfaction: Theoretical perspectives and an empirical review. In Handbook of organizational behavior (49-64).
Mnyani, Z., Onajaefe, D. & Ukpere W.I. (2023). “The Relationship between Motivation and Job Satisfaction of Administrative Staff at a Selected University in Cape Town”.Annals of Spiru Haret University. Economic Series, 23(4), 93-110, doi: https://doi.org/10.26458/2343
Mordi, C., Simpson, R., & Singh, G. (2020). Employee Satisfaction and Organizational Performance: A Study of Banks in Nigeria. International Journal of Human Resource Studies, 10(2), 43-58.
Moser, K. (2017). Job satisfaction and turnover intention in nonprofit organizations. Nonprofit Management and Leadership, 28(2), 159-176.
Nwagwu, W. E. (2017). The determinants of job satisfaction and turnover intentions in Nigerian banks. African Journal of Economic and Management Studies, 8(4), 486-502.
Olaniran, O. J., Adewuyi, S. A., & Aremu, O. S. (2021). Microfinance Institutions and Financial Inclusion in Nigeria: A Time Series Analysis. Journal of Economics and Sustainable Development, 12(4), 98-110.
Olaniyan, O. S., & Bankole, A. S. (2020). Human Resource Management Practices and Employee Satisfaction: Evidence from Microfinance Banks in Nigeria. International Journal of Management, Economics and Social Sciences, 9(3), 156-172.
Olayiwola, T. A., & Oladipo, A. O. (2019). Employee Job Satisfaction and Organizational Performance: A Case Study of Selected Microfinance Banks in Nigeria. Journal of Business and Management, 21(1), 45-62.
Ramlall, S. (2004). A Review of Employee Motivation Theories and their Implications for Employee Retention within Organizations. Journal of American Academy of Business, Cambridge, 5(1/2), 52-63.
Rolando GT (2017) Government’s role in promoting social entrepreneurship. Being a paper presented at the 1st Anniversary of the Institute for Social Entrepreneurship in Asia.
Saleem, S., Majeed, S., and Usman, M. (2013). Determinants of job satisfaction among healthcare professionals in public sector hospitals. International Journal of Academic Research in Business and Social Sciences, 3(9), 133-146.
Saner, T., and Eyupoglu, S. Z. (2015). The effect of training and development programs on job satisfaction: A field study. Procedia-Social and Behavioral Sciences, 195, 1307-1316.
Sattar, A., and Ali, H. (2018). The impact of leadership behavior on employee job satisfaction in banking sector of Pakistan. International Journal of Management and Applied Research, 5(4), 164-176.
Shafiq, M., & Akbar, M. (2011). Impact of Job Satisfaction on Employee Performance: An Empirical Study of Autonomous Medical Institutions of Pakistan. African Journal of Business Management, 5(7), 2635-2641.
Sousa-Posa, A., and Sousa-Posa, N. (2018). The effect of job satisfaction on labour productivity. Applied Economics, 50(47), 5102-5118.
Sowmya, R., and Panchanathan, M. (2016). Factors influencing job satisfaction of banking sector employees. Asia Pacific Journal of Research in Business Management, 7(2), 32-44.
Staw, B. M., and Rose, N. L. (1985). The dispositional approach to job attitudes: A lifetime longitudinal test. Administrative Science Quarterly, 30(1), 56-77.
Sykes, O.A. (1993). An Introduction to Regression Analysis" (Coase-Sandor Institute for Law & Economics Working Paper No. 20.
Thompson, A. W., and Lane, T. S. (2014). Job Satisfaction: A Review of the Constructs and Measures Used in the Hospitality Industry. Journal of Hospitality and Tourism Management, 21, 1-14.
Toole, T. M. (2020). Job satisfaction and intrinsic factors: A study of workers in the United States. International Journal of Management and Applied Research, 7(4), 271-282.
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