Abstract

This study examines the effect of age diversity on employee performance in public commercial banks in Tanzania, using a sample of 319 employees selected through stratified random sampling. The primary objective was to determine whether age diversity contributes positively or negatively to individual and organisational performance within the banking sector. A quantitative research design was adopted, and data were collected using a structured questionnaire comprising validated scales for measuring age diversity and employee performance. The central hypothesis tested was: H₀: There is significant relationship between age diversity and employee performance in public commercial banks. Descriptive statistics were analyzed for five items measuring age diversity, revealing varied perspectives. The item reflecting inclusive recruitment practices (AD1) received the highest mean score (M = 3.565), indicating strong agreement among staff that the bank recruits across age groups. Conversely, the item addressing management’s encouragement of intergenerational collaboration (AD3) recorded the lowest mean (M = 2.359), suggesting uncertainty or disagreement regarding the practical implementation of inclusive teamwork. Principal Component Analysis (PCA) was conducted to examine the dimensionality of the age diversity construct. The analysis yielded a dominant first component with an eigenvalue of 2.637, explaining 52.7% of the total variance, indicating a largely unidimensional structure. This supports existing literature suggesting that age diversity perceptions typically coalesce around core themes such as inclusiveness and fairness. The findings highlight both strengths and gaps in the current approach to age diversity, particularly the need for more effective translation of policy into practice. Recommendations include reinforcing cross-generational collaboration strategies and ensuring that managerial practices support age-inclusive behaviors to enhance employee performance and organizational cohesion.

Keywords

  • age diversity
  • employee performance
  • public commercial banks
  • generational diversity
  • workforce inclusion

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