ABSTRACT
Talent management practice is gaining
prominence in the international scene academically and professionally. Many
literature on talent management observed that in a competitive marketplace, talent
has become a primary driver of
organizational success. Scarcity of talent is a global issue,
even the Nigerian commercial banks are finding it difficult to attract and
retain talents. Hence, there is a need to carry out the present study on talent
management and employee job satisfaction in selected commercial banks in Lagos
State, Nigeria.
Survey research design was adopted for the
study. The population of this study consist of employees
of the five selected commercial banks (Guaranty Trust Bank, Zenith bank, Eco
bank, Access bank and First Bank Plc) located in Lagos State which amounts to
41,191 employees. Using Yamane (1967) fundamental
equation, the sample size was 520 bank employees and stratified
sampling technique was employed.A self-structured questionnaire were administered to the respondents,
while the research instrument was validated and data gathered was analyzed
using descriptive statistics and multiple regression analysis was carried out
to test the hypotheses.
The result of the analysis showed there is a significant
effect between talent attraction, talent development, talent retention and
talent utilization on incentives among employees of commercial banks in Lagos
State at the value of (p=000, R=.514a, p<.05). Similarly talent attraction,
talent development, talent retention and talent utilization do significantly
influence salary of commercial bank employees in Lagos State (p = 0.00, R =
.475a, p < .05). Also, there is a positive effect between talent attraction,
talent development, talent retention and talent utilization on job security
among commercial bank employees in Lagos State with the value of (F(3, 95) =
8.400, P-value = < 0.00, R = .685) and further result showed that there is
no combine effect between talent attraction, talent development, talent
retention and talent utilization on supervisory support among employees of
commercial banks in Lagos State (B = -.596, t = -.334, p> 0.05).
Conclusively, talent
management contributes immensely towards the level of employee job satisfaction
within the bank industry. The
study therefore, recommends that the board of directors of commercial banks
should expand employee’s opportunities for personal development or broaden the
job description at all departmental level in order to enhance employees’ sense
of belonging to the organization and to increase retention level as well as
re-consider adding additional financial and non-financial incentives to
guaranty higher employee job satisfaction.
CHAPTER
ONE
INTRODUCTION
1.1 Background to the Study
The
management of talent is an essential contributor towards direct development and
growth of human resources within the organization. In developed nations of the
world, it is known that knowledge and service based sector like the banks would
always keep professionals as backbone of the company performance due to their
experience on the job. It goes a long way to say that the quality of skills and
talent is seen as the only way to leverage an organization in order to create
competitive advantage (Woollard, 2010). Yet, in some banking sectors in Africa,
there is a considerable shortage of skills and talent to retain like the case
of South Africa and Nigeria (Howard & Wellins, 2012). In this sector of the
economy, firms need to pay as much attention to providing a great working
experience for their staff as they do to provide a great service experience to
their customers and clients (Economist Intelligence Unit and Project Management
Institute, 2014).In Nigeria today, one could say that service organization like
the banks should understand the fact that service excellence is largely a
product of personal relationships. Its emphasis is on the fact that clients
feel confident in the people providing the service and that service providers
have a memory of client needs and issues (Otoide, 2014). If that relationship
is broken as a result of key talent leaving the organization, the ability of
the organization to provide sustainable service is severely compromised (Abdul,
2013).
Consequently,
loss of talented employees has the potential to compromise future business with
the associated opportunity costs. This goes a long way to point out that in
Nigeria banks, talent management is still under evaluation as many service
driven organizations are battling with sustaining professionals in their firms
due to lack of relationship management or low satisfaction on the job (Alam,
Sameena, & Puja, 2012). The human resource of every organization has been
identified as the most important asset of that organization as its success depends
largely on their effective contributions (Mujtaba & Shuaib, 2010). In a competitive marketplace, talent therefore becomes a primary driver of organizational success
(Capelli, 2008). Goffee and Jones
(2007) define talent as a handful of employees whose ideas, knowledge and
skills that
give employees the potential toproduce the disproportionate value from
the resource they have available from them. Bersin (2012), defines talent as a complex
amalgam of skill, knowledge,
cognitive ability, potential as well as value of an individual.
Imparto (2013)considered talent to be people who are in
the top
positions, team leaders, individual who have the scarcecapability to make major
contribution in an organisation. At the same time, it
is the amalgamation of all the skills,knowledge,
experience and behaviours that a person has and brings to work. Talent, therefore, is used as an all encompassing termto
describe the human resources that organisations want to acquire and develop in
order to meet their business goals (Cheese, 2008).Talent management is the implementation of integrated
strategies processes and systems designed to increase workplace productivity bydeveloping improved
processes for attracting, developing, retaining and utilizing people with the
required skills and aptitudeto meet current and future business needs (Collings
& Mellahi, 2009).In the 1970s and 1980s, the business function which was responsible for people
was called "The Personnel Department”. The role of this group was to hire people, pay them, and
make sure they had the necessary benefits. The system which grewup to support
this function were the batch payroll system and in this role, the personnel department became a well
understoodbusiness function (Bersin, 2012).
In
the 1980s and 1990s organizations realized that the human resource function was
in fact more important. During this period, the human resource managers had a much larger role;
recruiting the right people, training them, developing, designing and defining job roles and organization
structures (organization design), develop "total compensation"
packages which include benefits, stock options and bonuses, and serving as a
central point of communication for employee health and happiness (Bersin, 2012). In the last decade, talent hasbecome a
precious commodity that enhances organizational effectiveness however, there has been a
shortage of talent in the workplace (Frank & Taylor, 2004). Organizational leaders
struggle to find talented workers, human resources (HR) managers have had to work closely with senior
managers to
attract, hire, develop, utilize and retain talent(Berger, 2003). The ability of an organization to effectively
and efficiently manage talent has the
potentials to positively impact on their growth and development. Major companies are now
developing
talents rather than acquiring talents because it saves money, reputation and
has long term benefits to the stability of the organization (Capelli, 2008). Talent
and talent management have been prioritized in life cycle of human resource
activities and thisgives talent management a prominent scene in corporate human resource strategies. This has also brought about increase in interest among
firms in the area of human resource management (HRM) and
human resource development (HRD) (Capelli, 2008).
The
practices of talent management generally differ from industry to industry and
in many cases certain practices are more suitable for certain industries than
others. At the same time, there are some practices which are prevalent in most
of the industries. These talent management practices helps to build
competencies, skills and career plans, maximize contribution and preparation
for advancement or transitioning to retirement (Zineldin, 2012). Organizations
of today take great care in the retention of their valuable employees and as
good employees are, becoming more difficult to find, and for this reason,
organzations ensure that talent or employees are well satisfied with their job
(Frank & Taylor, 2004).
Job
satisfaction plays an important role in achieving organizational goals and also
in achievement of the use of talents. Vroom (2000) asserts that positive
attitudes toward one’s job are technically equivalent to job satisfaction. It
implies that if an employee has negative attitudes toward his/her job, it is
equivalent to job dissatisfaction. Morse (2009) argues that job satisfaction is
anything that is capable of decreasing the tensions of workers. He opines that
stress comes from the basic human needs and that when these needs are met,
tensions become fewer or completely gone and this eventually leads to job
satisfaction. According to Cheese (2008) satisfied employees are more
productive, innovative, and loyal to their employers than non-satisfied
employees.
Denton
(2010) was of the opinion that satisfied and happy employees are more dedicated
to their work and put in effort to improve organizational customer’s
satisfaction. An employee who does not get a sufficient wage is faced with the
problem of maintaining his or her family life and other responsibilities
(Akintoye, 2012). This problem leads to dissatisfaction of employees. Also, job
satisfaction of employees has an important place in the work environment and
will affect the quality of the service he or she renders (Banjoko, 2010). Job
Satisfaction plays an important role in achieving organizational goals and also
the achievement of the use of talents. Owing to this fact, it is expedient to
add that the satisfaction level of employees can be consistently maintained
when organizations embrace working strategies that would enable them identify
factors that mostly contribute to employee satisfaction so they can better
implement them to attract and
retain talents over time.
Commercial banks in Lagos state are known
for their long working hours and high work load on their employees and these
affect their job satisfaction (Epie, 2011). Commercial banks exist due to the
various services they render to all sector of the economy (Cornett &
Tehranian, 2004). These services result in satisfaction of various financial
needs of the sectors of the economy as experienced by their numerous customers.
Importantly,
it could be assumed that organizations can enhance the potential and ability of
employees using configurations of human resource practices that are aligned
with their talent management strategy. Of critical concern is whether talent
management impacts employees’ job satisfaction and whether a focused talent
strategy is capable of delivering a return on investment to ensure talented
employees enjoy enough benefit to stay motivated and satisfied while working
with the organization. From the foregoing, the focus of this study is to
examine the relationship between talent management and job satisfaction of
employees of selected banks in Lagos State, Nigeria.
1.2 Statement of the Problem
The
current global business environment has become dynamic and there is a vital
need for flexible, innovative and rational approach to the management of human
capital, particularly with regard to the high talent professional employees.
There is a scarcity of talent and the concern about the scarcity of talent is
almost universal. This is part of the reason why organizations around the world
are competing for the same pool of talents. The issue of talent management has
become top challenge for managers since many employees complain of low job
satisfaction (Price Water House Coopers, 2012). Since lack of available talent
could threaten an organization from staying ahead of competition in their
industry, Nigerian banks have lost some of their highly skilled professionals
to the United States, Canada, France, the United Kingdom, Australia and the
Gulf States due to their lack of job satisfaction (Gara, 2007).
Talent
attraction involves the search for the best candidate for a job position and it
is a highly competitive demand in the global business arena in recent time. It
is not strange to find a number of employees still not measuring up to
expectation of their employers in terms of expert knowledge, experience, skills
and qualification (Hiltrop, 1999). Based on this fact, it becomes more
challenging for organizations to attract appropriately skilled talents,
develop, motivate and retain in a competitive business environment.
Talent
development has brought about scarcity of talents. Poor organizational
structure, inappropriate talent management system and delay in talent
development have not translated into job satisfaction for employees. According
to Kehinde (2012) the cause of such issue as mentioned earlier could be due to
lack of proper planning and implementation of proper and the bulk of these
issues has a negative effect on employee job satisfaction.
Talent
utilization involves the exploration of employee skills on the job and
experience for efficient performance. In other to ensure how efficient a talent
is in the organization, managers design evaluation strategies in form of
appraisal, tangible re-enforcement and restructuring (Mandong, 2015). Some of
these appraisals do not address the inadequacy of employees as a result of
process and design implementation, therefore, the organization do not get the
expected result.
Talent
retention is achieved when employees are satisfied on the job. Some of the
reasons why organizations experience low retention rate on talents could be due
to low employee job satisfaction which to an extent might be attributed to low
salary and poor incentives which are motivating factors towards job
satisfaction among employees. The result could be a long breakdown in employer
employee relationship (Wright & Bonnett, 2007; Tat & Abdullah, 2013).
From
literature examined in the course of this study, it was discovered that
scarcity of talent is a global issues and effort are been made to resuscitate
this issue by many organizations around the world, even the Nigeria commercial
banks are not an exemption. There is a huge demand in Nigerian Banks for
skilled professionals of all types, particularly those with technical or
quantitative skills such as computer engineers, information technologists,
financial planners and investment bankers. Gara (2007) observed that since the
oil boom began in the Gulf region, the temptation for Nigeria’s best and
brightest professionals to take up more lucrative positions abroad has been
strong. The exodus of highly skilled professionals to Europe and the United
States is a daily occurrence in many African countries such as Nigeria, Ghana,
Kenya and Ethiopia, and is largely responsible for talent scarcity (Gara,
2007).
Though,
research have been done to address these issues as it related the banking
industry in Nigeria, but more still needs to be done to close the gaps in
literature. It is based on the foregoing, that the present study seeks to
examine talent management and employee job satisfaction in selected commercial
banks in Lagos State, Nigeria.
1.3 Objective of the Study
The
general objective of the study is to examine the relationship between talent
management practice and employee job satisfaction among selected commercial
banks in Lagos State. The specific objectives are to:
1. examine
the effect of Talent management on incentives among employees of selected commercial
banks in Lagos State;
2. ascertain
the influence of Talent management on salary among employees of selected
commercial banks in Lagos State;
3. determine
the effect of Talent management on job security of employees of commercial
banks in Lagos State and
4. find
out the relationship between Talent management on supervisory support among
employees of selected commercial banks in Lagos State.
1.4 Research Questions
The
following questions were answered in the course of the study.
1. What
is the effect of Talent management on Incentives among employees of selected
commercial banks in Lagos State?
2. What
is the influence of Talent management on salary among employees of selected commercial
banks in Lagos State?
3. What
is the effect of Talent management on job security of employees of selected commercial
banks in Lagos State?
4. What
relationship exists between Talent management on supervisory support among
employees of selected commercial banks in Lagos State?
1.5 Hypotheses
H01:
There is no significant effect on Talent management on incentives among
employees of selected commercial banks in Lagos State.
H02:
Talent management does not significantly influence salary of selected
commercial bank employees in Lagos State.
H03:
There is no positive effect of Talent management on job security among selected
commercial bank employees in Lagos State.
H04:There
is no effect on Talent management on supervisory support among employees of
selected commercial banks in Lagos State.
1.6 Scope of the Study
This
study focuses on the effect of talent management on employee job satisfaction
in selected commercial banks in Lagos State. The study covered the selected
commercial bank Headquarters located in Lagos State, Nigeria because the
headquarters are domicile there and Lagos is considered the economic hub of the
State. The choice of commercial banks is due to the competitive nature of
banking job and the need to employ the best talents in the industry to carryout
banking services. The rigor involved in talent attraction, development,
utilization and retention were all part of the focus of choice. The upper,
middle and lower level managers of the banks under study form the population of
the study since most have had opportunity to lead various teams at one point or
the other in the course of carrying out their duties in the banking system to
ensure the right talents are properly placed in the right job or position. The
study time frame is 2017.
1.7 Significance of the Study
The
present study is significant in the following ways;
Management Practice
The
management of selected banks under study would find the outcome of this study
relevant in that it would inform them of various talent management models they
can adopt for effective organizational development to be attained within a
short period of time. The best technique suitable for the organization can be
examined as recommended in this study. The perception of talent management by
employees could foster higher talent management in the organization if the
management team spends more time to study non-performing talents and organize
regular training to improve their productivity and increase their satisfaction
level on the job. Management team of selected banks under study would benefit
from an idea on how to better clarify the issue of talent appraisal of employee
in order to ensure high retention rate among satisfied employees.
Industry
Banking
industry as knowledge-based service derived competitive firm needs workable
talent management system that ensures that they attract, train and retain
competent and productive employees. They constantlydo it as it forms the
bed-rock of consistent performance in their industry. Since employees are the
key players of organizational development, it is imperative to master the act
of retaining their manpower. This study provides the very strategy required for
banking industry to scale up their talent management.
Government
The
outcome of this study would serve as a pointer towards encouraging government
agencies to publish relevant and up-to-date articles that support talent
management within the banking sector and other sectors of the economy.
Society
This
study would expose the fears and challenges individuals, groups and companies
have encountered when it comes to talent management. With the review of relevant
literatures data gathered to ascertain views on talent management, this study
would inform the researcher to make commendable recommendation that would
enhance the societal interest on the present study focus.
1.8 Operationalization of Variables
Y=f(X)
Where
X=
Independent variable
Y=
Dependent variable
Where
X= Talent Management (TM)
Y= Employee Job Satisfaction
(EJS)
X= (x1, x2, x3,
x4)
Y= (y1, y2,
y3, y4)
Where
y1
= Incentives
y2
= Salary
y3
= Job Security
y4
= Supervisory Support
and
x1
= Talent Attraction
x2 = Talent
Development
x3 = Talent
Retention
x4 = Talent
Utilization
Y=f(X)
y1=f(x)…..y1=α+ß1x1+ ß2x2+
ß3x3+ ß4x4+µ
y2=f(x)…..y2=α+ ß1x1+ ß2x2+
ß3x3+ ß4x4+µ
y3=f(x) …..y3=α+ ß1x1+ ß2x2+ß3x3+
ß4x4+µ
y4=f(x) …..y4=α+ ß1x1+ ß2x2+
ß3x3+ß4x4+µ
1.9 Operational Definition of Terms
Talent:
Talent deals with the competence that is central to individual employability
Talent
Management: Talent management is the implementation
of initiatives and strategies to harness the special talents of individual
employees and convert them into optimum organization performance
Talent Development: This
is the process of planning, selecting and implementing development strategies
for the entire talent pool to ensure the organization has current and future
supply of talent to meet strategic developmental objectives in line with talent
management processes.
Talent Attraction: This
refers to activities involved in soliciting candidates with the required
knowledge skills and attributes to create a talent pool to meet organizational
goals and objectives
Talent Utilization:
This is the application of employee’s current skills more effectively to
his/her current or alternate role.
Talent Retention: The
ability of an employer to retain its skillful workforce against their
competitors in the same industry.
Employee:
Employee is the person that performs a task for a fee.
Job Satisfaction: It
is the pleasurable emotional state resulting from the appraisal of one’s job
experience.
Job security: Job
security refers to the assurance of the continuity of one’s job in the future.
Incentives: A
motivational factor that triggers an employee to perform his duties effectively
and efficiently in the workplace. They are often called tools managers use to
reward employee, encourage them for a good work carried out within a specified
period.
Salary: It
is a fixed periodic payment from an employer to an employee, which is often specified
in an employment contract
Supervisory Support: The
extent to which a manager, leader or director places value on their employees’
contributions towards the organization and how best he/she cares about their
well-being
Commercial Banks
Commercial
banks are financial institutions that are authorized by law to receive and lend
money to businesses and individuals. Commercial banks are open to the public
and serve individuals, institutions and businesses. Banks are regulated by
federal and state laws depending on how they are recognized and the service
they provide.
1.10 Historical Background of the Selected
Commercial Banks
Access Bank
Access
bank was issued a banking license on December 19th1988 and on
February 8th1989 the bank was incorporated as a privately owned
bank. On the 11th of May, 1989 it commenced its operations at Burma
Road, Apapa Head Office and on the 24th of March, 1998 it became a
Public Limited Liability Company. By November 18th1998, Access bank
was listed on the Nigerian Stock Exchange and it obtained its universal banking
license from the Central Bank of Nigeria.
Over
the past years, Access Bank has evolved into a world class African financial
Institution and today it has grown to be one of the five largest banks in
Nigeria in terms of assets, branch networks etc which has been achieved through
long term innovative client solutions and committed policies. The banks mission
n vision are written below:
Vision:
Our vision is to be the world’s most respected African bank.
Mission:
Setting standards for sustainable business practices that unleash the talents
of our employees deliver superior value to our customers and provide innovative
solutions for the markets and communities we serve (Access bank, 2015)
EcoBank
ETI(Eco
bank Transnational Incorporated) is a public limited liability company was
established as a bank holding company in 1985 under a private sector initiative
spearheaded by the federation of West African Chambers of Commerce and Industry
with the support of ECOWAS.
Mission and Vision: The
dual objective of Eco bank Transnational Incorporated (ETI) is to build a world
class pan-African bank and to contribute to the economic and financial
integration and development of the African continent.
Ethics and
Transparency: Eco bank Group has codified policies on
corporate ethics which applies to directors and employees across the group.
These policies are regularly reviewed to ensure that they are in line with
international practice and standards (Eco bank 2016)
First Bank of Nigeria
First
bank has been a solidified brand of fortitude, strength and innovation since
its inception in 1894. Since its launching, it has grown to be the leading
international banking group in Sub Saharan Africa with a total asset of N3.3
trillion, customer deposits of N2.6 trillion and a strong capital adequacy
ratio of 18.9% well above the Central Banks mandated minimum
Vision: To
be the clear leader and Nigerian’s bank of first choice.
Mission: To
remain true to our name by providing the best financial service possible (First
Bank 2016)
Guaranty Trust Bank
Guaranty
Trust Bank Plc was incorporated as a limited liability company licensed to
provide commercial and other banking services to the Nigerian public in 1990.
The bank commenced operations in February 1991, and has since then grown to
become one of the most serviced focused and respected banks in Nigeria. In
September 1996, it became a publicly quoted company and won the Nigerian Stock
Exchange Presidents Merit Award that same year and subsequently in the years
2000, 2003, 2005, 2006, 2007, 2008 and 2009. The bank was granted its universal
banking licence and later appointed a settlement bank by the Central Bank of
Nigeria in 2003
Vision: We
are a team driven to deliver the utmost in customer service, we are synonymous
with innovation building excellence and superior financial performance and
creating role models for society
Mission:
We are a high quality financial services provider with the urge to be the best
at all times whilst adding value to all stakeholders.
Corporate Governance:
Guaranty Trust Bank plc has over the years acquired an enviable reputation
built on a solid foundation of integrity, professionalism, value adding service
delivery and excellent corporate governance. As a publicly quoted company with
a highly diversified ownership structure, the bank is committed to improving
shareholders value through transparent best business practices (Guaranty Trust
Bank 2016).
Zenith Bank
Zenith
bank Plc was established in May 1990, and commenced operations in July of the
same year as a commercial bank. The bank became a public limited company on
June 17, 2004 and was listed on the Nigerian Stock Exchange (NSE) on October
21, 2004 following a highly successful Initial Public Offering (IPO). Zenith bank
Plc currently has a shareholder base of about one Million and is Nigeria’s
biggest bank by tier-1 capital. In 2013, the bank listed $850 million worth of
its shares at $6.80 each on the London Stock Exchange (LSE). It was Founded by
Jim Ovia in 1990 the bank has since grown to become one of the leading
financial institutions in Africa. The Bank grew its shareholder’s funds of N20
million in 1990 to N509.25 billion as at year end 2013.
Vision:
To become the leading Nigerian, technology-driven global financial institution
providing a distinctively unique range of financial service
Mission: To
build the Zenith brand into a reputable international financial Institution
recognized for innovation, superior performance, and creating premium value for
all stakeholders
Core values: Integrity,
professionalism, excellence, best corporate governance, commitment,
transparency, and service (Zenith bank 2016).
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