Evaluating the Impact of Financial Literacy Training on Employee Performance in Zimbabwe’s Banking Sector: A Micro-Econometric Analysis

This study investigates the efficacy of financial literacy training in enhancing employee performance within Zimbabwe’s banking industry, with a focus on adapting to technological advancements and evolving client needs. Utilizing a quantitative approach, primary data was collected from one-hundred and twenty-nine respondents through questionnaires administered to bank staff participating in skills development programs. The study utilized both stratified and simple random sampling techniques to ensure equitable representation across the sample, thereby enhancing the robustness and validity of the findings. Ordinary Least Squares (OLS) regression analysis revealed a significant positive correlation between skills development programs and improved employee performance. The findings underscore the importance of continuous investment in comprehensive financial literacy training initiatives, encompassing both technical and soft skills, to maintain a competitive and adaptable workforce. To inform policy and practice, this study recommends that local financial institutions should allocate a minimum of 10% of their annual training budget to financial literacy programs, and that regular program evaluations, bi-annually, should be conducted to assess effectiveness and industry relevance. Further, the study recommends collaborations between banking institutions and local universities and training providers should be fostered to develop context-specific skills development programs. Digital literacy training should be integrated into existing programs to enhance employee adaptability. Future research directions include investigating the integration of soft skills in skills development programs and digital literacy and employee adaptability in a technology driven banking environment.