Effect of Workforce Diversification on Performance of Microfinance Institutions in Uasin Gishu County, Kenya

Abstract

The main objective of the study was to assess the effect of workforce diversification on the performance of Microfinance Institutions in Uasin Gishu County, Kenya. Resource-based view theory informed the study. To achieve the objective of the study, the Correlational research design was employed targeting 262 employees from 8 microfinance institutions. A sample size of 122 respondents was stratified and randomly selected. Data were collected using structured questionnaires and analyzed using both descriptive, this included mean, frequency, standard deviation and inferential statistics by use of correlation and regression model to determine the nature of the relationship between variables and test hypothesis at 0.05 level of significance. Study findings showed that workforce diversification exhibited a positive and significant effect on the performance of MFIs. The study concludes that workforce diversification strategy enhances firm performance. Since workforce diversification has a positive influence on MFI performance, it is utmost necessary for MFIs to form a work atmosphere that encourages cohesiveness, coordination and contribution which influence performance.