The Impact Of Employee Job Satisfaction On Employee Retention In The Nigeria Banking Industry

Abstract

The high employee turnover ratio is the major concern of most banks in Nigeria because it is very expensive to the banks. Employees take an increasing role in service-based industries like banks in driving organizational profitability, therefore retaining skilled employees is the goal of many banks in Nigeria. The purpose of this study is to examine the impact of employee job satisfaction on employee retention in the banking industry. The primary objective was to examine how job satisfaction of employees’ variables like work environment, compensation/salary, promotion (career growth), and job security, impact employee retention.

This study aligned with the positivist position, based mainly on the deductive approach, and follows the main steps of quantitative research. Employees of commercial banks were selected through convenience sampling and questionnaire was used to collect the primary data. 228 respondents that gave their consent participated in this study by filling the questionnaire on the internet. The four hypotheses drafted were tested using Pearson Correlation and Simple Linear Regression.

This study concluded that the work environment has a significant influence on employee retention in Nigeria’s banking industry, there is a significant relationship between compensation/salary and employee retention in Nigeria’s banking industry, promotion (career growth) has a significant impact on employee retention in Nigeria’s banking industry, and job security has a significant relationship with employee retention in Nigeria’s banking industry.

It was suggested by this study based on the findings that factors such as job security, promotion (career growth), compensation/salary, and work environment should be taken into account by bank management to increase employees’ retention in the Nigerian banking industry. Also, management of banks should not only target money in framing the bank compensation policies, they should include other things like recognition, job security, stock options, training and educational opportunities, promotion (career growth), flexible work schedules, job redesign, work environments, dry-cleaning services, fitness centers, and on-site daycare which are also effective in enticing employees to remain with the bank for a longer period and they also have other benefits that enhance the individual effort.