Employee welfare and organizational performance of financial institutions in Uganda, a case study of Eco bank Uganda, Kampala

Abstract

The study examined the contribution of employee welfare and organizational performance of Ugandan financial institutions. A case study of EcoBank Uganda, Kampala and this is because it is well known of its exceptional banking services. The study was adopted the functional theory advanced by Varma (2017) to examine how employee welfare impacts organizational performance. The objective aimed to examine the relationship between; Economic welfare and quality of services, Recreational welfare and customer satisfaction and Facilitative welfare and timely deliveries at EcoBank Uganda, Kampala. An analytical cross-sectional survey research design was employed to collect both quantitative and qualitative data from a sample size of 60 respondents based on sloven’s formula which included both management and staff. Self-administered questionnaires, interview guide and documentary review checklist were the main data collection instrument. The study findings revealed that organizational performance at EcoBank Uganda is partially explained by employee welfare in respect of economic, recreational and facilitative welfare. Economic welfare improves the quality of services (Beta=0.337), recreational welfare increases customer satisfaction (Beta=0.280) and facilitative welfare attracts timely deliveries (beta=0.854) at EcoBank Uganda, Kampala. In conclusion, it emerged that employee welfare significantly associated with organizational performance at EcoBank Uganda contributing to 54% while other factors contributed the remaining 48% (e.g availability of resources). The study recommends that EcoBank Uganda should review its employee welfare policy and procedure, there should be an extensive search using questionnaire on what best can be done to staff to improve their welfare and bank’s performance and last, the bank’s performance should be monitored regularly to assess welfare and improve performance. The study also came up with areas for further research which included: employee welfare and organizational performance in government financial institutions, economic welfare policy and quality of services in public sectors and lastly HR policy and employee work-life.