WORKFORCE DIVERSITY AND EMPLOYEE PERFORMANCE: A CASE OF COMMERCIAL BANKS IN PAKISTAN

Abstract

Purpose of the Study: The fundamental objective of this study was to examine the association between workforce diversity and employee performance in commercial banks of Pakistan. Methodology: Gender, age, education, and ethnic diversity contribute to the workforce's diversity. A standardized questionnaire was distributed amongst the 400 employees of commercial banks of Pakistan to collect data. However, 281 employees, constituting 70.25%, responded. The research hypotheses were tested by using a multi-regression model through Stata16 for data analysis. Main Findings: The outcomes indicated a positive and significant association between gender diversity and employee performance. Gender diversity and age diversity are strong predictors of employee performance in Pakistan. However, the findings revealed that employee performance is not affected by education or ethnic diversity. Applications of the study: This study has significant implications from both a theoretical and a realistic perspective. This study contributes by adding sound theoretical literature to the body of knowledge on workforce diversity and employee performance. From a practical perspective, this study sheds more light on how workplace diversity affects employee performance in the banking sector of an emerging economy like Pakistan. The results of this study can also be used to build strategies to improve the implementation of employee diversity in an existing market. Novelty/Originality of this Study: Studies have been conducted to analyze the impact of diversity on employee performance, but this is the first study that has investigated the association between workforce diversity and employees performance with rich facets and particularly in the context of an emerging economy like Pakistan and specifically in commercial banks.