The Impact of Training on Employees’ Performance In The Banking Sector: The Mediating Role of Employee Motivation
Abstract
The banking sector operates in a highly competitive and regulated environment where employee performance plays a critical role in service quality, operational efficiency, and customer satisfaction. Despite substantial investments in training and development, many banks continue to face challenges in translating training initiatives into measurable performance outcomes. This highlights the need to examine not only the direct effects of training but also the underlying psychological mechanisms through which training influences employee behaviour. The purpose of this study is to investigate the impact of training and development on employee performance in the banking sector, with a particular focus on the mediating role of employee motivation.
A quantitative, survey-based research design was adopted for this study. Data were collected from 317 employees working in public and private sector banks using a structured questionnaire. The study examined three key variables: Training and Development (independent variable), Employee Motivation (mediating variable), and Employee Performance (dependent variable). Descriptive statistics, correlation analysis, regression analysis, and mediation analysis were employed to analyse the data. The findings reveal that training and development have a significant positive impact on employee motivation, enhancing confidence, morale, and engagement. Training also shows a positive influence on employee performance, although the strength of this relationship is moderate. Employee motivation is positively associated with performance and partially mediates the relationship between training and performance, indicating that training contributes to performance both directly and indirectly through enhanced motivation. The study contributes to the existing human resource management literature by providing empirical evidence from the banking sector of Pakistan. Practically, the findings offer valuable insights for banking managers and policymakers to design more effective training programs that integrate motivational strategies to improve employee performance.
