Effect of Work Related Stress on Employee Performance: The Case of Wegagen Bank in Dire Dawa District Branches

The purpose of this research was to assess the effects of workplace stress on employees’ job performance at Wegagen Bank S.C., Dire Dawa District. Three workplace stress factors, including work overload, role ambiguity, and role conflict, affect employees’ job performance. The research design was both a descriptive survey and an explanatory research design, and the target population was managerial and non-managerial employees of Wegagen Bank in Dire Dawa District Branches. The number of respondents was determined using a stratified sampling technique. Data was collected using questionnaires, and out of the target population, 190 questionnaires were distributed to the selected sample of respondents; 142 filled out and returned the questionnaires, making a response rate of 74.73%. In the results of the descriptive statistics, the majority of the respondents agreed that there was a high level of workplace stress in the bank. The Pearson correlation findings revealed that workplace stress dimensions have a significant relationship with employees’ job performance. In general, the findings of this study suggest that workplace stress plays an important role in promoting employees’ job performance. Managers at Wegagen Bank S.C. in Dire Dawa District may enhance the level of employees’ job performance by using organisational systems that minimise workplace stress in and around company practices. Besides, it is recommended that Wegagen Bank reduce workplace stress by reducing work overload, role conflicts, and role ambiguity to improve employee job performance. Finally, as managers, it is necessary to pay attention, evaluate work, and provide guidance to each employee. Employees must complete tasks more thoroughly to improve performance results, especially for newly recruited employees.