HOW THE NIGERIAN BANKING SYSTEM IS KILLING EMPLOYEE LOYALTY.
I was at the bank last week to complete a pending transaction that has lingered for two weeks because my account officer has been changed Three times in just one year. NO, they didn't "Japa" they have simply moved to another bank in search of promotion. With the hike in commodity price, removal of subsidy and now increase in Electricity tariff I do not blame the staffs for moving to get the next grade.
The Nigerian banking industry—a system that unfortunately rewards employees who jump from bank to bank in search of faster promotions, rather than recognizing the value of loyalty and commitment.
The average duration for an employee to progress to the next grade within a single bank is around four years. However, the situation drastically changes when individuals decide to move between banks. Shockingly, they can achieve promotions every six months by hopping from one institution to another.
When I was in the banking industry, I personally spent 3 years on a grade before getting promoted and I was considered to be a superstar as this was slightly faster than the industry average. Meanwhile, my friends at the Big4 got promoted three times during the same period.
We must consider the adverse consequences of this practice.
Why is Employee loyalty important?
- Employees no longer invest enough time or effort in acquiring in-depth knowledge of the products and services offered by the bank. As a result, customers are left with unanswered questions, inefficient service, and a diminished level of trust.
- Lack of loyalty can hinder the development of long-term relationships between employees and customers. Job hopping disrupts this bond, making it harder to establish strong connections and understand customer needs.
- It is cheaper to retain an employee than employ a new one.
-The culture of rewarding job hopping creates an environment where employees are constantly focused on their next career move. This mentality can undermine teamwork, collaboration, and the sharing of knowledge and experiences among colleagues.
To address this issue, it is crucial for Nigerian banks to reevaluate their reward systems and place a stronger emphasis on rewarding loyalty, commitment, and skill development.
In a nutshell, Dear banks please promote your performing staffs and review salary constantly as it makes no sense to be paying staff the same salary range for 10 years when the economy has experienced a cumulative 85% inflation over the years.
Let us come together as professionals and bring back corporate loyalty, this issue cut across other industries as well. By addressing this flaw in the system and promoting a more balanced and sustainable approach to career advancement, we can ensure better service delivery, enhanced customer satisfaction, and ultimately, the growth and prosperity of the industry as a whole.
written by Olabode Ifeanyi
This section is all about banks, banking, products, services, news, trends and customer experiences
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