FACTORS AFFECTING EMPLOYEE ENGAGEMENT: THE CASE OF DEVELOPMENT BANK OF ETHIOPIA

Abstract

Currently Employee Engagement (EE) is the key focus of any organization in gaining competitive advantage; hence, employee engagement is the best tool for achieving it. In fact, employee engagement is considered to be the most powerful factor to measure an organization’s strength and orientation towards superior performance for goal achievement. Development Bank of Ethiopia is one of the state owned financial institute where employee engagement is an important issue that determines towards such a superior performance. In spite of its appreciating benefit of EE for enhanced performance, it didn’t get any considerable attention from the side of management rather than conducting survey annually. Thus, the objective of the study is to study factors that affect EE for the case of Development Bank of Ethiopia. To achieve this objective, the study adopts a quantitative research approach, through the use of questionnaire provided predominantly descriptive data. A total of 244 questionnaires are distributed and 234 of them are returned. The researcher used a simple random sampling technique and selected respondents. Bothe primary and secondary source of data were also used. Statistical package for social science, version 24 was used in running the outcomes of the study. The result of the analysis revealed that, all variable used in the regression such as JC, RR, POS, PSS, WE, and ILC were found positively affect employee engagement in the case bank and needs to take these factors as a bench mark and make a critical improvement of employee engagement. JC is the most dominant factor that determines employee engagement in case bank. Since JC is the most strongly affect employee engagement, the case bank need to modify their job characters aligned with their organization objective. Moreover, PSS is the second top most significant factor for employee engagement. Thus, managers need to have training and development on how to communicate effectively with their employee to enhance engagement, Finally, continuous measurement of employee engagement level, assessing engagement practices throughout the organization and taking timely action on issues identified as crucial and important is recommended.