Effect of Employee Relations Practices on Employee Performance in Commercial Banks in Narok County, Kenya

Abstract

Employee performance is a critical factor for the success of commercial banks in Kenya. Commercial banks in Kenya have been facing various employee-related issues that have affected their performance, productivity and turnover. According to a survey conducted by the Central Bank of Kenya in 2019, the average staff turnover rate in commercial banks in Kenya was 14.6%. This has been attributed to various factors, such as inadequate compensation, lack of career growth opportunities, and poor working conditions. The general objective of the study was to establish the effect of employee relations practices on employee performance in commercial banks in Narok County, Kenya. The study was anchored on the Appraisal theory, Reinforcement theory and expectancy theory. The study adopted a descriptive research design. The target population was 336 managers and middle-level workers in 14 commercial banks in Narok County, Kenya. The study adopted Slovins' formula to get a sample of 182 employees. The study further adopted stratified random sampling to get the sample of each category of worker. The study collected primary data using a questionnaire. Content validity was ensured by the opinions of experts and supervisors. The reliability of the study instruments was determined by conducting a pilot test in Narok County, whereby 18 questionnaires were issued to employees in 2 banks. An internal consistency technique was adopted by utilization of Cronbach's Alpha. Data gathered in the study was both quantitative and qualitative in nature. Descriptive and inferential statistics were employed in the study. Descriptive statistics involves the use of percentages, frequencies, and mean and standard deviation. Inferential statistics involves the use of correlation and multiple analyses. After analysis, data were presented in the form of tables. The study concluded that there is a strong positive correlation between employee relations practices and employee performance in commercial banks in Narok County, Kenya. From the findings, the study recommended that commercial banks in Narok County should encourage a two-way flow of communication where employees feel comfortable sharing their ideas, concerns, and feedback with management. Moreover, commercial banks in Narok County should support employees in achieving a healthy work-life balance to prevent burnout and increase job satisfaction.