Journal of Human Resources Management and Labor Studies

Determinants of Employee Engagement in the Banking Industry in Kenya; Case of Cooperative Bank
Dr. Samuel Obino Mokaya, Maureen Jerotich Kipyegon

Abstract
Employee engagement is considered one of the most powerful measures of a company’s vigor towards competitive advantage and high performance. Employee engagement involves creating prospects for employees to attach with their managers, colleagues and organizations. The study sought to assess the determinants of employee engagement in the banking industry in Kenya. The determinants covered were performance management system, personal development and growth opportunities, and workplace recreation and remuneration. The study adopted a descripto-explanatory research design, covering a sample of 214 respondents drawn from a target population of 496 employees of Cooperative Bank of Kenya. The data collected through a self-administered questionnaire was analyzed using descriptive and inferential statistics. The study achieved a response rate of 50%. Correlation tests revealed a strong positive correlation between organizational performance management, personal development and growth opportunities, workplace recreation, and remuneration package and employee engagement with coefficients of 0.733, 0.596, 0.720 and 0.780 respectively at a 0.01 significance level. Regression analysis revealed that an increase in workplace recreation, personal development and growth, performance management, and remuneration package by one unit would increase employee engagement by 0.090, 219, 0.386 and 0.389 units respectively. All the variables covered had positive influence on employee engagement. However, remuneration was the highest contributor of employee engagement with workplace recreation having the least influence. The study recommends that bank managers should give special attention to programmes and activities that promote employee engagement which has a positive linkage to performance. Such programmes should include two-way communication system, ensure that employees have necessary resources they need to do their jobs, give employees appropriate training to increase their knowledge and skills, establish reward systems in which oustanding job performance is rewarded through various financial and nonfinancial incentives, build a distinctive corporate culture that encourages hard work and keeps success stories alive, develop a strong performance management system which holds managers and employees accountable, place attention on top-performing employees to reduce their turnover.

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