Employee Motivation and Performance of Savings and Credit Cooperatives (SACCOS). A Case of Umwalimu SACCO, Rwanda

  • Nizeyimana Felicien Mount Kenya University
  • Eugenia Nkechi Irechukwu Mount Kenya University


Lack of motivation among employees is the main problem which hinder the high performance of Umwalimu SACCO, some of its employees are shifting from Umwalimu SACCO to other financial institutions for examples with high performance and profitability. Therefore, the research aimed at investigating the impact of employee motivation and performance of Saving and Credit Cooperatives (SACCOs). The specific objectives were to analyze the effect of employee job satisfaction on performance of Umwalimu SACCO; to examine effect of employee training on performance of Umwalimu SACCO and to establish the effects of employee job security on performance of Umwalimu SACCO. Both qualitative and quantitative research designs were used by this study. The targeted population of the study was 199 selected from different department of Umwalimu SACCO and the research used the census where sample size was 133 respondents. The study employed a structured questionnaires as the data collection tools. The multiple regression and model summary were used to measure the relationship between variables. The findings indicated that the employee job satisfaction increases the performance of Umwalimu SACCO. There was a significant and high positive correlation between employees’ job satisfaction, training, job security and performance of Savings and Credit Cooperatives (SACCOs) ( r =.762, p=000; r =.740, p=000; r =.692, p=000) respectively. Moreover, the regression results showed that employees’ job satisfaction,  employees’ training and job security are positively and significantly related with Performance (B=.349, p=0.001; B=.234, p=0.000; B=.240, p=0.000) respectively. The study concluded that employee motivation is fundamental element of high performance of many organizations. The study recommended managers or head of institutions have to motivate employees and attempt to increase techniques of motivation to the employees towards their tasks. The financial institutions should give the training opportunities to the employees for acquiring new information, skills, knowledge in relation to their works. The financial institutions management should ensure that its employees are working in good conditions without stressors. Employees should be involved in decision making and the working need to be flexible. The study suggested that the team working spirit and commitment to achieve at organization objective and goals must keep in mind by manager of organizations.

Keywords: Employee motivation, performance, Savings and Credits Cooperatives (SACCOs), Rwanda.

Author Biographies

Nizeyimana Felicien, Mount Kenya University

Postgraduate student, Mount Kenya University –Rwanda

Eugenia Nkechi Irechukwu, Mount Kenya University

Lecturer, School of Business and Economics, Mount Kenya University-Rwanda


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How to Cite
Felicien, N., & Irechukwu, E. N. (2021). Employee Motivation and Performance of Savings and Credit Cooperatives (SACCOS). A Case of Umwalimu SACCO, Rwanda. Journal of Economics, 5(1), 11-28. Retrieved from https://stratfordjournals.org/journals/index.php/journal-of-economics/article/view/810