EFFECT OF HUMAN CAPITAL DEVELOPMENT ON WORKERS PERFORMANCE (STUDY OF GUARANTY TRUST BANK (GTB) IN BAUCHI).

ABSTRACT This study examined the effect of human capital development on workers' performance in Guaranty Trust Bank (GTB), Bauchi Metropolis, Nigeria, focusing on key drivers such as training, knowledge management, and skills development. In a dynamic business environment, human capital—encompassing knowledge, skills, and expertise acquired through education and training—serves as a critical asset for organizational competitiveness and sustainability. Despite investments in human capital by the banking sector, persistent challenges like employee underperformance, skill gaps, and inefficient knowledge utilization hinder optimal productivity. Employing a descriptive research design, the study conducted a census of the entire population of 75 employees at GTB Bauchi Branch, utilizing structured questionnaires based on a 5-point Likert scale to collect primary data. The analysis of the study was based on 49 questionnaires which were properly filled and returned. Reliability was ensured through Cronbach's Alpha values exceeding 0.7 for all constructs, while data analysis involved descriptive statistics (means, standard deviations) and multiple regression analyzed the hypotheses. Findings revealed strong positive perceptions of human capital practices, with means ranging from 3.531 to 4.122 across variables, indicating broad agreement on their benefits. Regression results confirmed significant positive effects: training (β = 0.562, p < 0.001), knowledge management (β = 0.561, p < 0.001), and skills development (β = 0.544, p < 0.001) collectively explained 60% of variance in employee performance (R² = 0.600, F = 22.497, p < 0.001). These outcomes reject the null hypotheses, affirming that enhanced training reduces costs and improves quality, effective knowledge systems foster innovation and teamwork, and skills programs boost adaptability and productivity. Therefore, human capital development is pivotal for elevating employee performance and organizational resilience in the banking sector. Recommendations included sustained investments in robust training programs, knowledge-sharing platforms, and future-oriented skills planning to bridge performance gaps.