Training and Competency: The Key to Improving Employee Performance in the Banking Industry

Employee performance is a key factor in determining a company’s success. However, performance-related issues still occur across various sectors, including government agencies, oil and gas, expeditions, regional water companies, manufacturing, and banking. PT Regional Development Bank West Java Banten Tbk, West Java Regional Office, is a banking institution that also faces employee performance challenges. This study aims to analyze the description of training, competence, and employee performance, as well as examine the effects of training on employee competence, competence on employee performance, and training on employee performance through competence. A quantitative research method was employed, using Partial Least Square (PLS) analysis with SmartPLS 4.0 for Windows. Data was collected via an online questionnaire from 332 employees of the West Java Regional Office. The findings indicate that the training variable falls under the “effective” category, employee competence is categorized as “very good,” and employee performance is considered “very high.” The results also show that training has a significant and positive effect on employee competence (11.4%), employee competence significantly and positively affects employee performance (80.5%), and training positively impacts employee performance through competence (9.2%). These findings emphasize the importance of training in improving competence, which in turn significantly enhances employee performance. This study supports the idea that effective training programs not only directly influence performance but also play a critical role in shaping employee competence, thereby indirectly contributing to higher performance outcomes.