ABSTRACT

Rapid changes in technology, information, and deregulation create tight competitions in all sectors. Today, national banks compete not only with local banks but also with foreign banks. To be competitive, banks need to maximize their employees’ performance. This study aimed to evaluate two kinds of strategies: (1) strategies based on self-quality – that is, employees’ competencies and emotional intelligence – and (2) strategies based on motivation – that is, performance appraisal and opportunity for promotion. Each strategy was evaluated using regression analysis. Data were collected through structured questionnaires. The sample was taken from employees at BNI USU Branch. This sample was chosen using saturation sampling. Fifty-six employees participated in this study. The result indicated that both strategies significantly influenced employees’ performance. However, building competencies was more effective to stimulate their performance. Thus, banks need to bolster employees’ emotional intelligence so they can better deal with their jobs.