Abstract

With the on-going crisis in the North West and South West Regions of Cameroon, financial institutions have to handle work life conflicts of their employees through work life balance practices in order to maintain a standard performance level for their employees.

This study assessed the effect of work life balance practices on employee performance in selected financial institutions in Buea. Four work life balance practices were retained which are; flex time, fringe benefits, leave programme and telecommuting. Employee performance was captured on a composite base using; absenteeism, quality of work, employee productivity, efficiency, effectiveness, employee intension to stay, achievement of target employee commitment and punctuality.

Data used for the study were collected through questionnaires from 111 employees of 15 financial institutions operating in Buea. Data were analysed through descriptive statistics and ordinary least square regression. The findings of the study showed that just fringe benefits significantly and positively affect the performance of employees in financial institutions in Buea and the other three work life balance practices (flex time, leave programme and telecommuting) do not affect employee performance.

The study recommends that management should focus more on fringe benefits as a work life balance practice and review the implementation of the other to improve their effectiveness.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The brain behind every organisation is to boast its performance. It has become clear that firm performance has important implications for its employees and the organisation as confirmed by past research (Asumaduet et al, 2018; Kithae & Keino, 2016; Mmakwe & Ukoha, 2018; Parkash & Jyoti, 2013).

Organisational performance is determined by the efforts and attachment of their employees (Musgrove et al, 2014). Therefore, for organisations to remain on top they should be able to improve their employee performance and monitor it. Most companies typically set performance target for individual employees and the company as a whole with the aim that the business offers good value to customers minimizes waste and operates efficiency.

In today’s business world, employee performance is key determinant in the achievement of organisational goals. As a result, organisations look for different ways of motivating their employees, in order for them to give their best to the organisation.

Since the development of the Resource Based View by Barney (1991) that sees employees as a strategic asset which if well managed can be a source of competitive advantage, organisations have continuously focused on implementing high performance human resource practices (HPHRP) and strategies to improve on their employees job performance such as performance appraisal techniques, training and development, compensation, information technology, job security, motivation, leadership style and a balance in the work life of employees.

Among these human resource practices, improving work life balance (WLB) is considered as one of the HPHRP which highly contributes to enhance employee performance (Hyde et al, 2013). Work life balance is defined as the maintenance of balance between the responsibilities at work and at home (Ciere et al, 2002).

Although employees spend time looking for jobs, when they finally get a job they also got another life to live at home which is of utmost importance as the life in the office in such a way that each of these separate lives affects each other. It is in this light that people have often tried to answer these questions: do we work to live? Or we live to work?

The success of employees in an organisation depends on how well they can blend their normal day to day activities with responsibilities at the work place. Employees work pressure has increased significantly since 2000 (Burke, 2010). However, work and family are of great importance to employees, it was discovered that work with family and family with work are always in conflict.

This conflict arises due to long working hours, reduced presence at home, missing social activities and child sickness just to mention a few (Gutek et al, 1991). This has been the case with the financial sector in Buea, due to fierce competition and extensive working hours.

In fact, in this sector employees work from 8am to 5pm to attend to their customers and after which they will stay for at most 2hours to balance up their accounts for the day and give daily reports at their head offices. They are charged heavy work load to meet up with their targets at the detriment of their personal life which has a great effect on children upbringing, unstable homes and poor social life.

Work life balance practices (WLBP) such as flex time, fringe benefits, job design, leaves and wellness programmes originated from work life conflict (WLC) experienced by employees. Work life conflict is the inter-role conflict that results when an employee does not strike a balance with other areas such as being a spouse, parent, member of church and other social groups.

The concept of work life conflict accepts the fact that most individuals have multiple roles. If this conflict is not settled it will lead to increase attrition rate and turnover intentions hence poor employee performance. Work life balance practices help to minimize the level of work life conflicts in organisations (Lero & Bardoel, 2007).

Historically, work life balance became a subject amongst scholars in the mid 60’s (Khaled, 2018). The integration of work life balance emerged in the 1970’s, when more women started working in offices. Competing and multi-faced demands between work and home responsibilities have assumed increased relevance for employees in recent years, due in large part to demographic and workplace changes, such as: a greater numbers of women in the workforce, transformation in family structures with a rise in the number of single parents, a growing reluctance to accept the longer hours culture and technological advancements (Mwangi et al, 2017). At this point the matter was seen as women’s problem and social problem.

In the late 1980’s human resource practitioners presented this area of employment policy as a potential business issue (Frame and Hartog, 2003). Social forces have altered the needs of both employees and employers.    Work life balance can be attained and encouraged as it is an important issue in the field of human resource management and has received significant attention from employers, workers, government, academic researchers, and the popular media (McPherson and Reed 2007, p13). Most researchers have emphasized work life balance has become one of the most important criteria managers use to ensure employees performance and organisational improvement (Hye, 2014).

But in recent time, it is seen that a successful work life balance practice is beneficial to both the employee and the organisation (Greenhaus & Powell, 2006; Hammer et al, 2005). This is because the disadvantages associated will impact both the employer and the employee (Mulanga et al, 2018).

Furthermore, the absence of work life balance practices causes poor performance and more absenteeism of employees (Fron et al, 1997). Also, the benefits of work life can improve both the quality of life of employees and the effectiveness of the organisation. Several researchers in this context have argued that improving the work life balance of employees, highly contributes to increase their satisfaction, commitment and engagement (McDonald et al 2013). Hence, reducing absenteeism and employees’ turnover intentions.

Globally, work life balance is reciprocally beneficial (Kumar & Chakraborty, 2013). From an organistional perspective, WLB may be part of a good performance while from an employee perspective WLB programmes may be a positive factor in deciding to work or remain for a particular organisation (Mayerhofer et al, 2011).

Furthermore, there is an ongoing struggle between employees and employers regarding work life balance because some employees and employers do not understand that every individual is an integral part of the family in particular and the society in general. In a situation where this does not occur, they are liable to face several challenges which stand as a setback to the organisation in the sector where they belong.

Empirical findings indicate that employees who feel good and experience limited stress at work and at home are more likely to feel satisfied with their jobs (Wright & Cropanzano, 2000) and to engage supportive behaviour towards the organisation (Rosen et al,  2010).

Many researchers have generally agreed on the importance of work life balance in improving employee performance (Karatepe, 2013; Kim, 2014). Several researchers revealed that work life balance in the work place has become a more important issue as it tends to exhibit positive results such as low turnover intentions, in-role performance, increased employees’ productivity, job satisfaction and organisational commitment (Wang & Walumbwa, 2007; Nawab & Iqbal, 2013) which boast the performance of employees.

Studies by Mmakwe (2018) and Ojiabo (2018) specifically in the financial sector revealed a strong correlation between work life balance practices and employee performance and proposed the banking sector should promote structures to foster a balance between work and family.

On the other hand, employees achieve a healthy balance between work and family through a flexible work arrangement (Asif et al, 2014). However, work life balance policies did not influence the performance of employees in the banking sector in Accra, Ghana because they were not satisfied with their leave programmes (Darko et al, 2018).

The existence of controversies in the literature on the link between work life balance practices and employee performance in the financial sector as described above gives room for further study. In addition, few studies have been carried out on work life balance practices and employee performance in financial institutions in Cameroon and in Buea specifically, where employee performance and work life balance are current issues of concern with the effect of the ongoing crisis.

1.2 Statement of the Problem

Globally, employees continue to experience major conflicts trying to balance work, family, and other private matters related to their life (Brough, Holt, Bauld, Biggs, & Ryan, 2008). As a result, employee burnout, stress, and under performance continues to pervade challenging constructive performance and productivity programmes instituted by organisations. The pressure of work, for those in work place has been escalating over the latest decades, due to current competition in the competitive business world. Work life balance practices and employee performance is still insufficiently studied worldwide although this subject has been receiving increasing attention from scholars.

United States in 1986 gave an insight on the trend of people spending more time on work-related tasks and very little time on other aspects of their personal lives (Emslie & Hunt, 2009). This has caused organisations to loss approximately $74 billion a year due to absenteeism and lost productivity (Lally, 2014). Furthermore, the performance of many organisations in the developed world has deteriorated due to high turnover rates, low loyalty and low productivity (AbuKhalifeh & Som, 2013).

African countries such as Nigeria, Ghana and Kenya have not been an exception.  There has been an upsurge in the consideration of the pressures that work has on family as well as life of employees (Mmakwe et al, 2018).  This has triggered research bordering on work life. Despite the number of studies conducted on WLB and workers performance in the United States, the United Kingdom, Australia and New Zealand; there seems to be little research assessing the influence of WLBP on the performance of people working in Cameroon.

In Cameroon today, the seeking of competitive advantage has led to an increased work load and put a strain on the employees consequently causing an imbalance between their work and life and hence impacting negatively on their performance. Work pressure, for those in work place has been alarming over the years more specifically in financial institutions.

Factors such as long working hours, tight work schedules, fast adaptive technological changes and the pace of change all demand our time and can be sources of pressure (Taiwo, Miebaka & Feyisayo: 2016). This situation is more critical in financial institutions operating in the North West and South West Regions of Cameroon due to the ongoing “Anglophone Crisis”.

In fact nowadays, financial institutions in NOSO region of Cameroon face work life balance issues due to their timing from 8am to 5pm but originally there is no time limit so employees have to work for longer hours due to unpredictable workflows, increase in workload due to the compression of Mondays work to other days within the week due to the observation of Monday as ghost town. Also, with the ongoing crisis, Saturday which was initially a half working day has now been taken as a full working day in these organisations and some have even extended to Sunday to meet up with the lost hours which is observed as ghost town every Monday, giving their employees less time to meet up with family demands and other social issues. As a result, many have reported experiencing stress and work life imbalance.

Furthermore, most of these workers have relocated their families to other regions of the country for education and security purposes. In trying to balance work and family activities, it has often resulted in conflicts. Employees in financial institutions continue to experience major conflicts trying to balance work, family, and other private matters related to their life. These conflicts are due to long working hours, unpredictable working hours, reduced presence at home, missing social activities, and child sicknesses, reducing their job performance and productivity as well as affect the upbringing of children, lead to broken and unhappy homes and poor social life. With the above mentioned challenges face by these organisations, financial institutions have put in place concrete measures by adopting different types of WLBP to address such issues.

Like compressed working weeks, job design, flextime, fringe benefits, telecommuting, leave and employee assistance programmes. For instance, most of these institutions have put in place a concrete leave programme for their employee such as an annual leave, maternity leave and sick leave for their employees.

These WLB policies are aimed at balancing work life of their workers and then create a proper environment for better performance. Although work life programmes have the potential to benefit organisations, they can also be an expensive investment and for this reason, employers are most likely to realize gains in situations where potential benefits outweigh expected costs (Konrad & Mangel, 2000).  However, the effectiveness of these policies has not been studied in the Cameroon context especially with the ongoing socio-political crisis because the work family life of almost every employee has been greatly affected.

1.3 Research Objectives

1.3.1 Main Research Objective

The main objective of this study is to assess the effect of work life balance practices on the performance of employees in financial institutions in Buea.

1.3.2 Specific Research Objectives

1. Analysing the effect of flex time on the performance of employees in financial institutions in Buea.
2. Assessing the effect of leave programmes on employee performance in financial institutions in Buea.
3. Determining the effect of fringe benefits on employees’ performance in financial institutions in Buea.
4. Examining the influence of telecommuting on the performance of employees in financial institutions in Buea.