Enhancing Employee's Performance through Training and Development: Empirical Study in Nepalese Microfinance Institution

Abstract

This paper focuses on microfinance institutions and examines the impact of training and development on employee performance. For the study, Nepalese microfinance institutions were chosen for the research, which is a progressive and growing market for financial institutions. Through a questionnaire, the primary data were collected from 210 respondents. The simple random sampling method was used for this study. The study used mean, standard deviation, coefficient of variation, correlation and regression to analyze the relationship and impact between the variables i.e. independent and dependent variables. Employee performance is taken as a dependent variable where training needs assessment, training content and delivery & training reward linkage as independent variables. The study shows a positive perception among respondents regarding the effectiveness of training initiatives in improving job performance. Most respondents believe training has significantly improved their job performance, emphasizing its transformative impact. The analysis of training needs assessment indicates a proactive approach to identifying skill gaps and tailoring training initiatives accordingly. This study concludes that there is no meaningful correlation between employee performance and training needs assessment in microfinance institutions. This study also shows that any improvement in the training content and delivery for employees working in microfinance institutions will result in a positive and significant improvement in their performance. This study also finds no evidence of a significant correlation between employee performance and training reward linkage for employees working in microfinance institutions.