Factors Affecting Employee Engagement in Development Bank of Ethiopia

Abstract

Currently Employee Engagement becoming great issue for every company. 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. This study examined the factor affecting Employee Engagement in Development Bank of Ethiopia. The independent variable Employee Engagement is described by six dimensions. These are Job Characteristics, Reward and Recognition, Working Environment, Organization Support, internal locus of control and Supervisory Support. The research was blend of descriptive and causal research in design. A probabilistic sampling technique was employed to determine number of respondents. Hence, the data was collected from 244 employees of 10 districts offices and head office selected randomly by using a questionnaire. Both primary and secondary sources like annual report of the bank and EE survey of the bank were also used. Statistical package for social sciences was used in running the outcomes of the study. After checking the normality of the data, inferences were later drawn from results of Pearson’s Correlation analysis to assess the relationship between independent and dependent variables. Furthermore, multiple regression analysis was employed to assess factor affecting EE. The responses of employees showed that the Employee engagement in the bank is poor. According to the finding a strong, positive and significant relationship was observed between dependent Variable and independent Variable. Among the six dependent variable (Job characteristic, Reward and Recognition, Perceived Organizational Support, Perceived Supervisor Support, working environment and Internal Locus of Control), Job characteristic was identified and concluded as the highest influence on employee engagement. Therefore, since the level of employees of the bank is not good the bank should focus on focus on the selected six variables especially on Job characteristic to improve the level of employee engagement as a bank.