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Customised capacity building is thought to be essential for organisations. However, empirical studies are lacking with respect to its effect on employee outcomes. This study aims to examine the effect of customised capacity building on employee outcomes including employee empowerment and employee engagement through employee learning in Ghanaian local government institutions.

Valid responses from 281 employees of Metropolitan, Municipal, and District Assemblies (MMDAs) in Ghana were collected through a survey. A structural equation model was used to analyse the data and test the hypotheses formulated.

The results showed that customised capacity building has an effect on employee learning, employee empowerment, and employee engagement. Employee learning also had an effect on employee empowerment and employee engagement. In addition, employee learning partially mediated the effect of customised capacity building on both employee empowerment and employee engagement.

This study is of particular relevance to public organisations. As there is a dearth of studies focusing on customised capacity building, this study provides insight into incorporating the phenomenon into public sector organisations to enhance employee learning, empowerment and engagement.