Factors Motivating Employee Loyalty and Employee Retention in Deposit Money Banks in Nigeria

Abstract

For some time, the banking sector in Nigeria has been witnessing incessant labour turnover. The study focused on the factors motivating employee loyalty and employee retention in the deposit money banks. This study used descriptive survey research design. Four banks namely First Bank of Nigeria, United Bank for Africa, Guaranty Trust Bank and First City Monument Bank were randomly selected for the study. The sample size for the study consists of 190 employees out of the total population of 360 employees. A set of self constructed questionnaire was used for data collection. 118 copies of the questionnaire that were correctly completed out of the 190 copies which were administered were used for the study. Percentages, frequency and mean ranking were used to analyze the data collected. The result showed that training and development (3.95) and promotion (3.86) were the main motivating factors for employee loyalty while training and development (4.01) and job security (3.90) were the best ranked employee retention factors. The implication of the result is that, apart from training and development, the better motivating factors for employee loyalty and employee retention are not the same. The result of the hypothesis showed a strong positive relationship between employee retention and loyalty factors in deposit money banks(r = 0.83). It is recommended that management should provide quality training and development programmes as important motivating factors for both employee loyalty and employee retention. The inclusion of other major motivating factors in the organizations’ HRM policy will be an added advantage.