Effect of Workplace Diversity on Employee Performance in DSIBS in

Nigeria

JOAN EKHOMEH EHILEBO, HAUWA LAMIDO - ABUBAKAR, DANIEL OGOHI CROSS

Department of Business Administration

Nile University of Nigeria

NIGERIA

Abstract: - The increase in diversity among employees has prompted organizations to begin to craft their

Likelihood was used for data analysis. The results showed a significant positive relationship between workforce

diversity (age, gender and experience) and employee performance. The findings of this study will give

guidelines on the management of workforce diversity in the Banking and financial sector towards improved

employee performance. This study examines the effect of workforce diversity on employee performance in

DSIBs in Nigeria which is a gap that the study sought to fill.

Key-Words: - Workforce Diversity, Age Diversity, Experience Diversity, Gender Diversity, Employee

satisfaction, Employee engagement and Employee performance

Received: August 14, 2021. Revised: May 26, 2022. Accepted: June 11, 2022. Published: June 24, 2022.

understanding, promoting, appreciating, and

celebrating the multiplicity of workforce identity-

based demographics [3]. According to [4]

performance can be described as the execution of a

task; how well a job is efficiently and effectively

discharged to achieve the desired result. Employee

performance therefore is the efficient and effective

utilization of resources in a dynamic working

environment [1]. It is the measure of output of an

employee relative to inputs while efficiently and

have longed been contending its significance on

Employee Performance (EP). Some researchers

have constantly stressed the existence of symbiotic

relationship between WD and EP. According to

of workforce diversity from the social category

dimension (gender, age, academic qualification, and

ethnicity) as shown in works by [3], [9]–[12]. None

of the literatures reviewed have specifically

researched on the effect of WD on the DSIBs in

Nigeria hence the need for this study.

backgrounds such as age, gender, ethnicity,

disability, origin, religion etc. [7]. It can be defined

as a strategy which promotes the integration of

various human differences, and the use of diversity

and inclusion polices as a guide in the workplace

[13].

This study adoptd Jehn et al., (1999) diversity

framework (as shown in figure 1 below) which

comprises of three-dimensional layers: Social

Category Diversity (SCD), Informational Category

Fig. 1: An adopted framework of Jehn et al (1990)

Workforce Diversity Model

2.1.1 Gender Diversity

Gender-diversity which belongs to the generic

demographic attributes of SCD) can be defined as

physiological conclusion of being a female or male

[14]. Gender describes the masculinity and

femininity of an individual [5], [11]. The study of

working in a specific field or occupation, usually

from similar previous jobs [23]. Employees should

have knowledge coming from different business

areas. Diversity based on experience brings about

innovation [23]. The variety of experience that

employees have in the organization which is

embedded in social contexts and interactions is

captured in experience diversity [23]. Experience

views, opinions, perspectives and heterogeneity to

the organization [17].

2.2.1 Employee Engagement

present-day rapidly dynamic business environment.

Resource-Based Theory is used to underpin this

study. Resource Based Theory postulated [7],

reinforced by [2], [27] is a popular theoretical

framework in management. It purposes that

organizations’ resources is a key factor for

achieving sustainable competitive advantage and

high organizational performance when they posses

valuable and imitable (Delery and Roumpi, 2017).

Criticisms of the RBT is that it does not consider the

influence of the external environment and that

holding valuable, rare, inimitable, and non-

substitutable resources is necessary but not

3.1 Data Collection and Sample

Representation

Data for this study was collected from different

categories of employees of the five (5) DSIBs in

Nigeria through a well-structured questionnaire on a

five-point Likert scale. A total of 2086

questionnaires were administered to the respondents

of the 5 DSIBs in the senior, middle and junior

cadres. A total of 1881 valid questionnaires were

4 Analysis and Results

Partial Least Square (PLS)- Structural Equation

Modeling software was used to test the proposed

model. PLS is considered more suitable that other

method of analysis especially when the conceptual

model is considered complex and includes many

constructs with formative indicators.

4.1 Hypothesis Testing

Table 4. Correlation Table

engagement in the DSIBs in Nigeria. Thus,

suggesting that an increase/change in age-diversity

of the DSIBs, could result to about 0.0490885 unit

increase in the level of employee engagement as a

measure of the employee performance as perceived

by the employees. Furthermore, the age-diversity

has a p-value of 0.035 which is less than 0.05 (5%)

level of significance thus implies that the coefficient

REJECTED. We therefore conclude that age-

diversity has a positive significant relationship with

employee engagement which is a measure of

Ekwochi et al., (2018) who concluded that age has a

positive and significant effect on the performance of

organization. Other research works that align with

The variable experience-diversity has a regression

coefficient 0.2456696. This implies that the

experience-diversity has a positive impact on the

employee engagement in the DSIBs in Nigeria.

Thus, suggesting that an increase/change in

experience-diversity of the DSIBs, could result to

about 0.2456696 unit increase in the level of

employee engagement as a measure of the employee

Thus, suggesting that an increase/change in

experience-diversity of the DSIBs, could result to

about 0.3057789 unit increase in the level of

employee satisfaction as a measure of the employee

performance as perceived by the employees.

Furthermore, the age-diversity has a p-value of

0.000 which is less than 0.05 (5%) level of

significance thus implies that the coefficient is

employee satisfaction in the DSIBs in Nigeria” is

REJECTED. We therefore conclude that

experience diversity has a positive significant effect

on employee satisfaction which is a measure of

[11], [14], [31], [31].

diversity of the DSIBs, could result to about

0.2663113 unit increase in the level of employee

satisfaction as a measure of the employee

performance as perceived by the employees.

Furthermore, the gender-diversity has a p-value of

0.000 which is less than 0.05 (5%) level of

significance thus implies that the coefficient is

statistically significant. Hence, the null hypothesis

significant positive impact on employee

performance (employee engagement and employee

satisfaction) in DSIBs in Nigeria.

Banks operating in competitive markets seek to

continually enhance their performance [4], [6]. The

factors that support the enhancement of such

performance occupies the strategic management

literature. Scholars have recognized the important

role that the management of diversity plays towards

policies towards ensuring improved performance.

However, not all organizations are aware of the

relevance of diversity in the workplace. It is

important for every organization to embrace

diversity, ensure that they harness every benefit that

comes from diversity and put machineries in place

to reduce the negative consequences that may arise

from group social categorization.

that employee performance has a positive

correlation with workforce diversity variables such

as age, gender and experience. Therefore, it is

important for organizations to be conscious of the

need to deal with demographic characteristics of its

properly educated on the present or existing

initiatives and programs of diversity available and

its importance to the growth of the organization.

different gender as they perceive the opposite

gender as being capable of performing their job

effectively. As such, organizational leaders should

take off glass ceilings factor and review the pay

structure in the organization to promote equality in

pay as this will encourage improved employee

performance. Managements of the DSIBs should

uphold and continue to promote diversity policies

and practices in their operations given the

importance and benefits that diversity provides to

trending topic in the current economic scenario

because satisfied and engaged employees give rise

to high performing organizations [7], [8], [25].

This research reveals that employee engagement is a

good indicator for success of any organization.

Organizations need to pay attention to employee

engagement to boost their growth and create

competitive advantage. An engaged workplace

of the organization to enhance production and

business performance. In concluding, we can say

that high levels of engagement and satisfaction in

the banking sector improves employee performance

and ultimately organizational performance. The

satisfaction and employee engagement.

Based on the findings of this research work, rather

than focus on just diversity management,

an innovative approach in the management of

human and material resources in the organization.

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