Examining employee well-being and financial performance in microfinance institutions: insights from cross-country analysis
摘要
This study investigated the relationship between employee well-being and financial performance in microfinance institutions in 139 countries from 1999 to 2019. This study also investigates the moderating role of microfinance institution size in the relationship between employee well-being and financial performance. Furthermore, this study investigates the effects of human resource policies, including employee social protection, employee safety, anti-harassment, and non-discrimination policies, on the financial performance of microfinance institutions.The results suggest a positive relationship between employee well-being and financial performance. However, the positive effect of employee well-being is undermined by the size of microfinance institutions. To ensure the robustness of the results, we further analyzed the effects of employee social protection, employee safety, anti-harassment, and non-discrimination policies on the financial performance of microfinance institutions. The results reveal that microfinance institutions must sustain and implement important human resource policies to improve their financial performance. However, the results of this study clearly demand customization of these policies, as their effectiveness diminishes when microfinance institutions grow larger. One-size-fits-all approach does not apply to large microfinance institutions.