Impact of Continuing Education on Employee Productivity and Financial Performance of Banks

Abstract

Objectives: This research aims to measure the impact of continuing education on employee productivity and that of the latter on the financial performance of commercial banks in Kosovo. Methods: A quantitative approach was employed to achieve the research objectives and questions. The statistical population comprised 3636 employees working at commercial banks operating in Kosovo. We obtained data from the Central Bank of Kosovo (CBK). A sample of 360 employees was then determined using Slovin's formula to include the representative sample. Findings: The Ordinary Least-Squares (OLS) model demonstrated that continuing education affects employee productivity, and the latter affects the financial performance of commercial banks in Kosovo. The findings indicated that 40.2% of employee productivity is explained by continuing education, while 20.4% of financial performance is explained by employee productivity. Novelty/improvement: This research showed that commercial banks could receive feedback on the importance of employees’ continuing education in increasing their productivity and, subsequently, the bank's financial performance. This can improve effectiveness and productivity at work and the organization's financial results, especially cost optimization and income generation.