The Impact of Work Environment on Employees’ Performance in Banking Sector in Palestine

Purpose- Because high employee performance can lead to positive organizational outcomes, improving employee performance is one of the foremost objectives for any organization. Nowadays, since employees have an arguably greater number of job opportunities from which to choose and may, ostensibly, opt to leave unfavorable conditions in search of better alternatives, the workplace environment proves a critical factor in deciding to remain or leave any given position. Put simply, the workplace environment stands to influences employees’ levels of motivation, performance, and productivity. This study examines the effects of the work environment on employee performance in the Palestinian banking sector. Design/methodology/approach- Questionnaires were distributed among an initial 320 bank employees from a total of 14 Palestinian banks found in Palestine. Of the 320, 268 were deemed completed in a manner satisfactory to be considered primary source data. The remaining 52 surveys were improperly or incompletely populated and not calculated into the results. The data from these surveys were then analyzed using SPSS v 27. Findings- Findings indicate that the work environment correlates to a significantly positive effect on employee performance. After that, these results have provided robust and beneficial recommendations, which policymakers and banks may implement to formulate relevant strategies to manipulate the work environment and improve employee productivity. Originality- This research is the first to address the relationship between employees’ performance and the workplace environment in the Palestinian Banking sector.