Employee Perspective of Compensation, Labour Turnover and its Effects on Performance in Nigerian Banking Industry: Post Consolidation

Abstract

Since, the period of Nigerian banking recapitalization and consolidation reform program, human resource management challenges become more pronounced in the industry. In this connection, bank employees especially the marketing team, work based on performance targets without corresponding compensation tightly linked to such targets. This brought about human resource challenges which lead to high rate of employee turnover in the industry. However, the challenges become vulnerable making it difficult for most of the banks to realize their set objectives. Drawing on the body of Strategic human resource literature, the study investigate the employee perspective of compensation and labour turnover with a view to ascertain its impact on the performance of Nigerian banks. A Survey of 248 employees was conducted, data was collected through questionnaire designed on a five points likert scale. Two hypothesis were formulated, tested and analyzed using regression analysis. The findings for the study revealed a significant relationship between remuneration and employee performance, while insignificant association was reported between labour turnover and employee performance in Nigeria. Recommendations and area for further study was also suggested.