Influence of Self Efficacy on Employee Acceptance Levels and Use of Human Resource Analytics in Microfinance Institutions in Kenya

Abstract

Employees influence company performance the most. Through the use of human resource analytics, they become more efficient and therefore ensuring that organizations improve their competitiveness. However, the diffusion of this concept among employees in organization has been slow. The purpose of this study was to establish the influence of self-efficacy on employee acceptance levels of human resource analytics in Microfinance institutions in Kenya. It was based on diffusion of innovation theory and theory of reasoned action. A cross-sectional survey was done of 500 employees. Stratified random and purposive sampling techniques were used to obtain a sample of 222 respondents. The study established that employees with high self-efficacy accept and use human resource analytics more. This enables computing of people value and contributions to organizations. Regression results showed that self-efficacy has a statistically significant positive effect on employee acceptance levels and use of human resource analytics (β = 0.879, p = 0.000, R=0.740, p = 0.000). The study recommends that employees nurture their affective state and enactive mastery towards using analytics. This shapes their behavioral intent in accepting and using human resource analytics hence making proactive decisions. Organizations should provide training to build on employees’ confidence in analytical capability.