Employee Engagement and Performance in Microfinance Institutions in Kenya: A Case of BIMAS Kenya Limited

Abstract

This study's main aim was to explore the connection existing between engagement and performance of employees in microfinance institutions in Kenya with BIMAS Kenya Limited as a case study. To achieve this objective, the study's sought to establish the effect of Empowerment on performance and to examine the moderating effect of industrial regulations on the relationship between employee engagement and performance of employees at BIMAS Kenya Limited. The study was principally anchored on the Three component model of engagement, the Universalistic theory and the Herzberg two factor theory. A descriptive research design was used and the respondents were 48 employees who are Top level managers, Operations managers and Branch managers. A census was carried out since the population of the study was relatively small. Primary data collection was done using structured questionnaires that  comprised both open and closed ended questions. A pilot study was employed to help in identifying problems that could be encountered by the respondents. Content validity was used and testing of instrument reliability was done using the Cronbach Alpha with a threshold of 0.7. Descriptive analyses was analyzed using frequencies and percentages, means and standard deviations. While inferential statistics was analyzed using multiple linear regression using 0.05 level of significance. SPSS version 24 software aided in data analysis. The analyzed quantitative data findings were presented by the use of frequency tables, bar charts and pie charts. The study findings revealed that there is minimal bureaucracy in the organization and that they had the necessary skills to perform their duties. The employees, identified with the organizational goals and wanted to serve for long. On regression, the model summary ascertained that the model is good and can be utilized for the purposes of estimation. The F critical at 5% level of significance was 3.123. Since F calculated is greater than the F critical (value = 25.185), this shows that the overall model was significant. This study recommends that managers should ensure all their employees have everything they require to perform their duties, be treated equally and adopt the use of different strategies to ensure that the output of employees is utilized to the maximum. The study recommends further research to understand how an employee is empowered.