Retention Strategies in Post Consolidation Banking Industry in Nigeria (a Case Study of First Bank Nigeria Plc)

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The Nigerian banking industry is one of the most dynamic and competitive industries in the Country. The banking industry has transformed rapidly in the last ten years, shifting from transactional and customer service-oriented to an increasingly aggressive environment in which competition for revenue is top priority.

The Nigerian Bank can now fit into the global definition of bank. Consolidation of the Nigerian Banking sector is one of many reforms of the Gen. Obasanjo's administration that Nigerians have to embrace happily. (Victor E, 2007)

Prior to the reforms, the industry was highly fragmented, with many banks having very small and undiversified capitalisation. With a much higher capitalisation base, the Nigerian banking sector will be expected to play an important role in financing economic development through increased credit to the private sector. These reforms will also serve to highlight crucial gaps in the skills currently to be found within the banking sector and those needed within the new banking environment. Highlighting what he termed the current ‘mismatch’ of skills in the sector, the Governor stressed that the sector will now need to develop professional bankers who can develop effective banking services, structure transactions and drive down costs. (Soludo C, 2008) The world over, human capacity development is the bedrock of any developmental initiative. And it has become a startling reality that no country can traverse the frontiers of sustainable development without first of all building and in fact developing appropriate capacity and competence needed to support such efforts. Indeed, perhaps one of the greatest impediment of developing economies both at micro and macro levels is not only financial inadequacies but the dearth and underdevelopment of capacity and the attendant competence to create, convert, sustain and maintain the available resources to achieve desired ends. Selecting and retaining great staff is key for business success. Talented people who continue to develop skills and increase their value to your organization and to your customers are your most important resource. (Susan H, 2008)

1.2 Problem Statement
The world all over are experiencing shortage of skilled workers. There is high level of discontentment. One of the greatest business challenges in an economic market where job opportunities are plentiful is keeping good employees. The latest studies show:

the costs of replacing an employee range from 1 to 2 ½ times the person's yearly salary; •From 40 to 50 percent of profit fluctuations may be attributed to employee feelings, opinions, and job motivations; •Money alone does not motivate, but instead has the opposite effect on daily performance; •When the workplace isn't "fun", the most talented people leave first. (Bervelly S, 2007) •The cost of employee turnover can range between 1/2 to 4 times an employee's annual wages and benefits •80% of turnover can be attributed to mistakes during the hiring process(Harvard Business Review) •Employee retention has as much to do with who you hire as what you do after he or she is hired •Traditional methods of hiring employees only provide a 14% likelihood of a successful job hire (Michigan State University) Long-time banking employees are becoming disenchanted with the industry and are often resistant to perform up to these new expectations - if they stay with the company at all. The diminishing employee morale results in decreased revenue. Because of the inherently close ties between staff and clients, losing those employees completely can mean the loss of valuable customer relationships. The banking industry is concerned about employee retention from all levels: from tellers to executives to customer service representatives because competition is always moving in to hire them away. Beyond the mere fund-raising and mergers, the challenges awaiting the banks are multifaceted and...
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