FACTORS AFFECTING EMPLOYEE PERFORMANCE IN COMMERCIAL BANKING SECTOR IN NEPAL

Abstract

Employee performance is a critical determinant of organizational success, particularly in the commercial banking sector. This study, conducted within the context of Nepalese commercial banks, aims to analyze the factors influencing employee performance. The primary objective is to explore the relationship between independent variables such as employee governance, work organization, compensation, training and skill development, and staffing, and their impact on Employee Performance. A quantitative research methodology was adopted for this study. Data were collected through a structured questionnaire distributed to 400 employees of various commercial banks in Nepal. Statistical tools, including descriptive analysis, correlation analysis, and regression analysis, were utilized to analyze the data. The findings reveal that employee governance and compensation significantly influence Employee Performance. Specifically, improvements in employee governance are associated with substantial increases in performance, underscoring the importance of robust governance frameworks that promote transparency and accountability. Similarly, competitive and fair compensation structures were found to be critical in enhancing employee motivation and retention, thereby boosting performance. On the contrary, factors such as staffing, training and skill development, and work organization did not exhibit significant impacts on Employee Performance within the sampled context. In conclusion, the study highlights the paramount importance of employee governance and compensation in driving Employee Performance in Nepalese commercial banks. Key Words: Employee Governance, Compensation, Employee Performance, Commercial Banks