The work environment, which includes a variety of factors, has an impact on how employees perform their duties. A welcoming and inclusive workplace environment will improve employee performance; thereby improving organizational performance. The aim of this study was to investigate the effects of working environment on employee performance at Zemen bank. For the purpose of this study, quantitative research approach with descriptive and explanatory research design was used. 50 respondents for the study were chosen using a stratified random sampling technique. For data collection, a structured questionnaire was used. The collected data was analyzed using descriptive statistics, correlation and regression analysis through statistical package for social science (SPSS). Consequently, the finding of the descriptive statistics revealed that majority of the respondents have responded below the average level of preference for reward and training related factors whereas most of employees were sufficiently agreed with physical working environment, leadership style and communication practice related factors. Furthermore, the finding of the correlation and regression analysis revealed that physical working environment, reward, leadership, training and communication practice have significant and positive impact on employee performance. Based on the finding of the study, recommendation was forwarded for the management of Zemen Bank, that the bank has to revised its reward and training system since there is a gap in those area at the bank, whereas the bank also has to keep its strength on physical working environment, leadership style and communication practice