The influence of human capital development on financial performance among commercial banks of South Sudan, a case of equity bank Juba main branch.

Abstract

The purpose of this study is to assessed the relationship between human capital development and financial performance among commercial banks in South Sudan. A Case of Equity Bank, Juba Main Branch. Specifically, the study determined the effect of training & development programs on financial performance, assessed the role of performance evaluation on financial performance, examined the relationship between reward system and financial performance and assessed the moderating on the relationship between employee commitment and financial performance of Equity Bank, Juba Main Branch. This study employed case study design and a purely quantitative approach was employed. The target population was 145 bank staff and the sample size was 107 respondents was determined using Slovene’s formula, however only 105 respondents successfully participated in the study. The data collection instrument was questionnaires; data analysis was done using frequency and percentage tables and correlation and regression analysis. The correlation results indicated a significant positive effect of training & development programs on financial performance of Equity Bank, a positive and significant effect of performance evaluation strategies on financial performance, and a positive strong relationship between reward system and financial performance. The study concludes that that there is a strong influence of human capital development on financial performance among commercial banks in South Sudan. The study recommends that management of commercial banks in South Sudan especially Equity Bank, Juba Main Branch should improve the training programmes, find ways and means of communicating their goals and plans to their employees in order to accomplish what the organization is in business for, its mission and vision and ensure there are effective reward systems for employees which helps in fulfilling basic human needs such as needs for autonomy, relatedness, and competence, it will enhance employees' growth and individual development plans. Further studies are recommended similar studies by conducting similar studies in other commercial banks in South Sudan.