DETERMINANTS OF EMPLOYEE ENGAGEMENT IN CASE COMMERCIAL BANK OF ETHIOPIA ADDIS ABABA AREA

Abstract

Context of the Study: This study examined the determinants of employee engagement in the commercial banking sector in Addis Ababa, Ethiopia, focusing on the factors that influence employees' level of commitment and enthusiasm toward their work.

Research Objective: The primary objective was to identify significant predictors of employee engagement and provide actionable recommendations for improvement.

Research Methodology Adopted: A descriptive and explanatory research design was adopted, employing a quantitative research approach. Data were collected through a survey questionnaire administered to employees of commercial banks, and the analysis was conducted using the Statistical Package for Social Sciences (SPSS) version 21. Multiple regression analysis was applied to determine the significant variables influencing employee engagement.

Key Findings and Practical Implications The findings revealed that job characteristics, reward recognition, perceived organizational support, and internal locus of control positively and significantly impact employee engagement. However, perceived supervisor support did not show a significant relationship. These results highlight the importance of meaningful job design, effective reward and recognition programs, a supportive organizational culture, and promoting employee autonomy and empowerment in enhancing engagement levels. The study suggests that commercial banks prioritize improving job characteristics by providing meaningful tasks, autonomy, and skill development opportunities. Additionally, implementing robust reward and recognition systems, fostering a culture of organizational support, and empowering employees are crucial strategies for enhancing employee engagement and overall organizational performance.