Examining the Effect of Training and Development on Employee Productivity of Microfinance Banks in North Central Nigeria

Abstract

Abstract: This study examined the effect of Training and Development (T&D) on the employees’ productivity of Microfinance Banks (MfBs) in North Central Nigeria. An explanatory mixed research method was adopted. For the quantitative part of the study, closed-ended questionnaires were used for primary data collection through questionnaire surveys, while face-to-face interviews were used to collect qualitative data. This study’s population covered all the 113 MfB operating in North Central Nigeria, using a census sampling technique. Data collected we reanalyzed using Structural Equation Modeling - Partial Least Squares (SEMPLS). Similarly, a simple random sampling technique was used to select ten participants from different MfBs across the region, and thematic analysis was used to analyse the qualitative data collected. Quantitative findings revealed a positive and statistically significant effect of T&D on employee productivity of MfBs (𝛽 =0.257; t-statistics = 3.738; and p-value = 0.002). This was confirmed by the qualitative findings, which revealed that the three T&D-related themes (technical skill acquisition, mentorship programs, and training methods) positively influence employee productivity. It is recommended that MfBs invest in task-specific T&D programs to enhance employee productivity.