International Journal of Human Resource Studies

ISSN 2162-3058
2018, Vol. 8, No. 3

Factors Motivating Employee Loyalty and Employee

Retention in Deposit Money Banks in Nigeria
Adedeji, Abosede O. (Correspondence author)
Department of Business Administration,
Federal University of Technology Akure, Nigeria

Ugwumadu, Obianuju C.
Department of Project Management Technology,
Federal University of Technology Akure, Nigeria

Received: July 15, 2018 Accepted: August 20, 2018 Online published: August 27, 2018
doi:10.5296/ijhrs.v8i3.13555 URL: https://doi.org/10.5296/ijhrs.v8i3.13555

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.

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Keywords: employee loyalty, employee retention, motivating factors

1. Introduction
Labour turnover appears to be rampant in the deposit money banks previously known as
commercial banks in Nigeria, resulting in employees seeking better opportunities in
organizations within and outside the country. With the dearth of qualified personnel probably
occasioned by the abundance of unemployable graduates, employee loyalty and retention
become very important. Good employees ought to be retained and this may depend on their
loyalty to the organization. This is as a result of many organizations trying to attract and
recruit highly priced and competitive employees because they add value to their employers.
To obtain employees’ loyalty and retention so that they are not poached by competitors, there
is the need for employers of labour to provide factors that motivate the employees to stay on.
Employee loyalty and retention are factor-based but there has been no agreement on the
generally acceptable factors that motivate staff to be loyal and stay on the job.
Uzma(2015) opined that employees are assets to every organization and they are the main
factor of any organizational progress. Although employee loyalty and retention are issues in
human resource management but they are particularly important in the deposit money banks
in Nigeria that appears to be volatile. Employee loyalty and retention need to be studied
because the deposit money banks in Nigeria have just endured economic recession, unstable
forex regime, huge non- performing loans and unpredictable corporate governance (Adedeji,
2018). The loyalty and retention of the human capital need to be examined since good
employees are not easily replaced without costs. Therefore, good employees could mean
good and profitable organizations.
According to the National Bureau of Statistics (2010), many factors have led to some
qualified personnel who possess the right knowledge, skills and abilities to leave banking and
find greener opportunities in other lucrative sectors of the Nigerian economy. Perhaps, longer
working hours, increased workload, poor managerial style, job insecurity, poor working
environment, dissatisfaction with rewards and recognition, and lack of work-life balance have
been responsible for the incessant turnover in the sector. The perceived lack of career
progression has also been a contentious issue in the deposit money banks and banking
industry in Nigeria. Eight years after the report, labour turnover have not abated in the banks.
All these factors have made employee retention a major issue of discuss in the sector. It
behooves on management and other stakeholders to come up with strategies that will
encourage employee retention in the banks since their retention reduces cost of recruitment.
Adding employee disloyalty and not-to-stay decision to the myriads of challenges plaguing
the banks should be avoided because disloyal and unstable workforce may be detrimental to
their employers. One begins to imagine which factors will enhance loyalty and retention
among employees of the deposit money banks in Nigeria in this time of economic
uncertainty.
In other words, finding and retaining the best employees is every company's challenge
(Mehta, Singh, Bhakar & Sinha, 2010). Based on current happenings in the workplace, it
could be envisaged that in the future, successful organizations would be those that adapt their

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organizational behaviour to innovation, creativity and flexibility; achieved by employee

loyalty and retention. Loyal employees utilize their skills, knowledge, expertise, talent and
other attributes for the benefit of the organizations they work for and can go extra mile to
ensure the survival of the workplace through excellent performance.
According to Mwangi and Omondi (2016) staff retention is one of the key challenges facing
many organizations around the world. Human resource managers are tasked with the
responsibility of coming up with viable and better strategies to attract, retain and motivate
staff, in order to achieve both employee and organizational goals and objectives (Kassa,
2015). Employee retention is a key factor in an organization’s success (Lyria, 2013). It affects
both public and private organizations occasioned by globalization that has intensified
competition and increased mobility of highly skilled employees (Ng’ethe, 2013).
According to Amadasu (2003) and Gberevbie (2008), if appropriate employee retention
strategies are adopted and implemented by organizations, employees will remain and work
for the successful achievement of organizational goals. Nonetheless, the question of how
motivation should be induced in the employees in order to maintain their loyalty to the
organization still remains. The reviewed literature did not reveal the generally accepted
factors that motivate bank employees’ loyalty and retention. Consequently, Robbins, Judge
and Sanghi (2007) explained that the question is not about if a person is motivated or not, but
it is important to know the factors that motivate employees and bring about loyalty and
retention willingly and without coercion. Building on Al-Ma’ani (2013), achieving a high
level of organizational loyalty is one of the factors that help banks to achieve their objectives.
It is a prerequisite for many modern organizations because the banks that have employees
with high degree of loyalty are effective banks and thus they achieve the desired goals of
significant profits and the highest performance. They also achieve additional competitive
advantage as a result of retaining qualified staff in the banking sector.
The objective of this study is to examine the factors that motivate employee loyalty and
retention among the employees of deposit money banks in Nigeria. This study is also to
ascertain the relationship between factors motivating employee loyalty and retention in the
banks.
1.2 Research Questions
The following research questions were asked and answered:
i. What are the factors motivating employee loyalty and retention in deposit money banks?
ii. What is the relationship between factors motivating employee loyalty and retention in
deposit money banks?
1.3 Objectives of the Study
The specific objectives of the study are to:
i. examine the factors motivating employee loyalty and retention in deposit money banks;
and

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ii. ascertain the relationship between factors motivating employee loyalty and retention in
the banks.
1.4 Research Hypothesis
Only one null hypothesis was formulated for the study:
H01: There is no significant relationship between employee retention factors and employee
loyalty factors in the deposit money banks
2. Literature Review
2.1 Conceptual Review
2.1.1 Concept of Retention
Retention is defined as a voluntary move by an organization to create an environment, which
engages employees for long term and with primary aim of preventing the loss of competent
employees from the organization as this could have adverse effects on productivity and
service delivery (Oginni, Dunmade & Ogunwole, 2018). The retention of high performing
employees has become more challenging for managers. Such employees are quite mobile and
frequently move from one job to another because many organizations want to attract and
poach them at a time. Luna-Arocas and Camps (2008) believe that maintaining a stable
workforce is one of the key sources of sustainable competitive advantage for organizations. It
is one thing to employ staff; it is another effort to retain them. Any organization that does not
retain its staff will be incurring costs of recruitment, training and retraining as well as
employee disloyalty. Employee retention is important to the overall success of any
organization. In this study, employee retention is viewed from the perspective of employees’
willingness to remain in the organization based on availability of motivating factors.
2.1.2 Concept of Loyalty
Kumar and Shekhar (2012) described loyalty as the willingness to put one’s personal needs
aside for the betterment of a relationship. It refers to a person’s preparedness to defend
another person or entity irrespective of the opinion of others. According to Antoncic and
Antoncic (2011), employees are loyal when they believe in the objectives of the company,
accept the objectives as their own, work for their common welfare, and want to stay in the
company. Employee loyalty is a deliberate commitment to further the best interests of one’s
employer, even when doing so may demand sacrificing some aspects of one’s self-interest
beyond what would be required by one’s legal and other moral duties. A loyal employee is
such that is willing to work in that organization, thinking or believing that to work in the
organization is the best option for him. For this purpose, the employee tries his best for the
success of the organization to ensure that it survives.
2.2 Theoretical Review
This study is based on equity theory by Adam Smith. Smith (1965) in the theory posits that
employees seek to maintain equity between the input that they bring into a job and the
outcome they receive from it against the perceived inputs and outcomes of other employees.

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Employee input include effort, loyalty, hard work, commitment, skill, ability, adaptability,
flexibility, tolerance, determination, heart and soul, enthusiasm, trust in our boss and superiors,
support of colleagues and subordinates as well as personal sacrifice while the output include
pay, salary, expenses, perks, benefits, pension arrangements, bonus and commission - plus
intangibles - recognition, reputation, praise and thanks, interest, responsibility, stimulus, travel,
training, development, sense of achievement and advancement and promotion.
Equity theory proposes that individuals who perceive themselves as either under-rewarded or
over rewarded will experience distress, and that this leads to efforts to restore equity within
the organization. This theory appears appropriate for this study and it is used as the
theoretical framework.
2.3 Empirical Review
Employee loyalty and retention have attracted empirical studies recently due to their
importance. Logan (2000) found that opportunity to learn and do new things enhance
employee retention. It can be deduced that organizations that allow employee assertiveness
and use of their initiative in carrying out their duties will enhance employee loyalty and
retention. According to Clarke (2001), employees remain where there is strong relationship
with colleagues in the workplace. This can be viewed from the perspective of team building
for task accomplishments and interactions beyond the office. It can lead to team
encouragement for the achievement of set goals.
Samuel and Chipunza (2009) studied the use of motivational variables as a panacea for
employee retention and turnover reduction among employees of two private and two public
sector organizations in South Africa. The study which was based on cross-sectional survey
research design had a total population of 1800 employees and a sample size of 145
respondents. A self constructed questionnaire was used for data collection and Chi-square test
of association was used in testing the hypothesis formulated at 0.05 level of significance. The
result of the study indicated that intrinsic and extrinsic motivational factors to a very large
extent influenced both private and public sector employees to remain on their job.
Specifically, training and development, challenging/interesting work, freedom for innovative
thinking and job security were found to influence employee retention in both private and
public organizations.
Nyamekye (2012) carried out a study to investigate the impact of motivation on the retention
of employees in Standard Chartered Bank, Ghana Limited. A total of 180 respondents were
selected for the study and regression analysis was used for data analysis. The result of the
study showed that motivational factors such as salary and fringe benefits were rated as most
important to the workforce of the bank, followed by job security and relationship with
co-workers. Other strategies rated important to the workforce are recognition, training
opportunities, openness and trust, promotional opportunities, and effective communication.
Sinha and Sinha (2012) studied the factors affecting employee retention among 100
employees holding middle managerial positions in two organizations from heavy engineering
industry in India. In EEPL three factors ranked in order of importance are competence and

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relationship oriented, scholastic and futuristic oriented and developmental and reward
oriented. In MBPL, relationship oriented came first, followed by competence and scholastic
oriented and thirdly by reward oriented. Also, the employees of both companies found their
organizations retention factors adequate and suitable for them although the factors differ in
order of importance to the employees. The implication of this result is that what is good for
one set of employees may not motivate the other set based on individual differences and
interests.
Khuong and Tien (2013) worked on factors that have direct and indirect influence on
employee loyalty through job satisfaction among bank workers in Ho Chi Minh City
(HCMC), Vietnam. The study involved 201 employees of 11 banks. Multiple regression,
factor and path analyses were used to analyse the collected primary data. The study revealed
that job satisfaction, organizational environment and incentives among others were related to
organizational loyalty. The researchers recommended that those factors need to be provided
in the workplace for employee loyalty.
Osibanjo, Salau and Falola (2014) studied the relationship between motivational factors
(salary, promotion, incentives, award, relationships and benefits); employee retention and job
satisfaction in the Nigerian banking industry. The survey research design was adopted and
primary data were obtained through a self- administered questionnaire from the sample size
of three hundred and seventy six (376) respondents. AMOS 21 Structural Equation Model
(SEM) was used to analyse the data. The result showed that salary and promotion have strong
positive implications for employee retention. Similarly, incentives and benefits were also
found to have positive effects on job satisfaction. However, award and relationships were
found to have negative effects on job satisfaction.
Dama and Isah (2015) investigated the influence of training and development on staff
retention and loyalty among bank workers in Adamawa State, Nigeria. The sample size of the
research was 197 and the instrument used was a set of questionnaire. Using regression for
data analysis, they found that training and development positively affect staff retention and
loyalty.
Mwangi and Omondi (2016) conducted their study on factors influencing staff retention in
Equity Bank Limited, Kenya with 100 employees at various levels of management as study
sample. Data analysis was done using descriptive statistics such as mean and standard
deviation and inferential statistics that include correlation and regression analysis. The study
revealed that financial and non–financial needs, reward system and training are factors
driving employee loyalty.
Oginni, Dunmade and Ogunwole (2018) examined employee’s work expectations,
satisfaction and labour turnover in the service industry in Nigeria. Data collected with the use
questionnaire from 542 respondents in three states were analyzed using correlation and
regression analysis. The study found a positive and strong relationship among the variables
and recommended that management should understand employees work expectations at the
point of entry. This will enable management to harmonize employee job expectations with
organizational expectations for the benefit of all stakeholders. The result showed positive

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linear relationship between job satisfaction and retention.

The reviewed literature showed that there is no agreement on the specific factors motivating
employee loyalty and retention although some factors continued to appear as the most
preferred in the studies. Perhaps the result of this study would align with the previous ones or
be different.
3. Methodology
This study employed descriptive survey design. Four deposit money banks in Akure, Nigeria
namely First City Monument Bank(FCMB), United Bank for Africa(UBA), First Bank of
Nigeria(FBN) and Guaranty Trust Bank(GTB) which are the major players in banking
activities and with a total population of 360 employees were investigated. Population of the
study comprised all the top level, middle level and low level management staff of the banks
respectively. The sample size being 190 was selected using random sampling technique. The
research was based on primary data that were collected through a set of self administered
questionnaire. The questionnaire contained the demographic information of respondents,
statements on motivating factors, employee loyalty and employee retention. It had a
five-point Likert scale rating from 1-‘’not important’’ to 5-‘’very important’’. In this study,
motivating factors formed the independent variable while employee loyalty and retention
formed the dependent variable. Percentages, frequencies and mean ranking were used to
analyze the data collected. The hypothesis was tested at 0.05 level of significance (p<0.05)
and analyzed using Pearson Correlation Coefficient. The Formula is given as:

Correlation coefficient, r, is subject to the constraint: - 1 ≤ r ≤ +1

The closer is to , the stronger the monotonic relationship.

The validity of the research instrument (questionnaire) was determined using content
validity approach by ensuring that the instrument clearly defined some concepts and
constructs used to frame the items that highlight the concept or constructs used. The
reliability of the research instrument was measured using test-retest approach to test
the consistency level of the instrument employed for the study. The reliability
coefficient being r=0.8which is adequate.
4. Results
4.1 Response Rate per Bank
The 190 copies of questionnaire were distributed to the four banks as follows: FBN 63 copies
were administered with 41 retrieved, FCMB got 37 with 23 retrieved, UBA got 48 with 29
retrieved and GTB got 42 with 25 retrieved. In all 118 copies representing 62.1% were

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retrieved. The retrieved copies are adequate for the study.

4.2 Demographic Information of Respondents
The data collected showed that 86 males (72.9%) and 32 females (27.1%) were used as
respondents. It shows that there are more male employees than female employees in the
sampled banks. The reason for the disparity could not be ascertained. Their educational
qualification revealed that 50 respondents (42.4%) possessed NCE/OND certificate, 42
respondents (35.6%) possessed Bachelor degree, 22 respondents (18.6%) possessed Master
degree and 4 respondents (3.4%) possessed the PhD degree. It could be deduced that
employees with NCE/OND certificates are in the majority; perhaps due to outsourcing of
tellers and similar employees by some of the banks. These set of employees are semi skilled
and carry out routine assignments. Graduates constitute about 36% of the workforce and are
next in number to the NCE/OND holders. As skilled workers, they need to take up
supervisory tasks and are usually permanent staff. It is noteworthy to observe that banks now
have PhD holders as staff though in insignificant number. On the number of years spent so far
on the current job, 74 respondents (62.7%) have spent 0-4 years, 40 respondents (33.9%)
have spent 5-9 years and 4 respondents(3.4%) have spent 10 years and above on their current
job. From the analysis, about 2/3 of the workforce are 0-4 years on the job while only 3.4%
are 10 years and above on the job. The data analysis tend to suggest high turnover rate within
the banking industry.
4.3 Factors Motivating Employee Loyalty in Deposit Money Banks
Table 1 shows the perception of respondents on the importance of employee motivating
factors affecting loyalty. It must be noted that all the factors are important based on the
perception of the respondents. Training and development occupies the first position among
the loyalty factors with a mean rank of 3.95. Other factors have the following mean rank:
promotion (3.86), job security (3.78), job satisfaction (3.63) and managerial style (3.58).
They came second, third, fourth and fifth respectively. The result shows that participation in
decision-making (3.15), organizational values and beliefs (3.14) and reward and recognition
(3.10) are not as important as the first five factors. They were the least three important factors
in tenth, eleventh and twelfth positions correspondingly.

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Table 1. Factors Motivating Employee Loyalty in Deposit Money Banks

Factors 1 2 3 4 5 N Mean Ranking
Training and Development % 3.4 6.8 20.3 30.5 39.0 118 3.95 1st
Promotion % 1.7 11.9 16.9 37.3 32.2 118 3.86 2nd
Job Security % 5.1 8.5 13.6 49.2 23.7 118 3.78 3rd
Job Satisfaction % 3.4 3.4 37.3 39.0 16.9 118 3.63 4th
Managerial Style % 3.4 15.3 23.7 35.6 22.0 118 3.58 5th
Organizational Justice and Prestige % 3.4 11.9 30.5 35.6 18.6 118 3.54 6th
Work Environment % 13.6 13.6 8.5 37.3 27.1 118 3.51 7th
Work-Life Balance % 18.6 16.9 5.1 27.1 32.2 118 3.37 8th
Hiring practices or Employee% 9th
16.9 13.6 20.3 30.5 18.6 118 3.20
Selection
Participation in Decision-Making % 10.2 20.3 28.8 25.4 15.3 118 3.15 10th
Organizational Values and Beliefs % 15.3 16.9 22.0 30.5 15.3 118 3.14 11th
Reward and Recognition % 10.2 25.4 25.4 22.0 16.9 118 3.10 12th
Valid N (listwise) 118
Note 1= not important, 2= of little importance, 3= moderately important, 4= important, 5 =
very important
Source: Field Survey (2018)
4.4 Factors Motivating Employee Retention in Deposit Money Banks
The respondents were asked to state how important the twelve factors are if they are to
consider remaining in their present employment, just like the factors were rated under loyalty
factors. The result as displayed in Table 2 shows that 1.7 % of the respondents stated that
training and development as employee retention factor is not important, 15.3% stated that it is
of little importance while 27.1% and 49.2% said that it is moderately important and very
important respectively. Training and development was ranked first with mean value of 4.07
by the respondents. Job security, reward and recognition, managerial style and promotion
were ranked second, third, fourth and fifth respectively with mean values of 3.90, 3.52, 3.51
and 3.46 in that order. Work environment (3.22), organizational values and beliefs (3.14) and
participation in decision-making are least three important factors giving the consideration for
other identified factors presented in the table. Participation in decision-making has 6.8% of
not important to employee retention, 18.6% of little importance, 39% of moderately
important, 25.4% of important and 10.2% of very important factors motivating employee
retention.

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Table 2. Factors Motivating Employee Retention in Deposit money banks

Factors 1 2 3 4 5 N Mean Ranking
Training and 1st
1.7 15.3 6.8 27.1 49.2 118 4.07
Development
Job Security 0.0 10.2 18.6 42.4 28.8 118 3.90 2nd
Reward and Recognition 10.2 22.0 10.2 20.3 37.3 118 3.53 3rd
Managerial Style 1.7 15.3 32.2 32.2 18.6 118 3.51 4th
Promotion 13.6 13.6 8.5 37.3 27.1 118 3.46 5th
Organizational Justice 6th
3.4 22.0 16.9 40.7 16.9 118 3.37
and Prestige
Job Satisfaction 0.0 23.7 30.5 33.9 11.9 118 3.34 7th
Hiring Practices or 9th
20.3 10.2 18.6 20.3 30.5 118 3.31
Employee Selection
Work Environment 13.6 22.0 16.9 23.7 23.7 118 3.22 10th
Organizational Values 11th
23.7 13.6 13.6 23.7 25.4 118 3.14
and Beliefs
Participation in 12th
6.8 18.6 39.0 25.4 10.2 118 3.14
Decision-making
Valid N (listwise) 118
Note: 1= not important, 2= of little importance, 3= moderately important, 4= important, 5 =
very important
Source: Field Survey, (2018)
4.5 Test of Hypothesis
H01: There is no significant relationship between employee retention factors and employee
loyalty factors in the deposit money banks
The results of the test of the hypothesis are presented in Table 3. Pearson Correlation
Coefficient and significant probabilities for the relationship between employee retention
factors and employee loyalty factors in the deposit money banks are itemised. The result
shows that there is a very strong positive relationship (i.e. correlation coefficient, r=0.830)
between employee retention factors and loyalty factors in the banks. The significant
probability for this association is 0.00. Since correlation is significant for this research at 0.01
level (2-tailed) and significant probability for the hypothesis is less than 0.01 (2-tailed), the
null hypothesis is rejected, hence, the acceptance of alternate hypothesis that there is
significant relationship between employee retention factors and employee loyalty factors in
the deposit money banks.
Table 3. Relationship between Employee Retention Factors and Employee Loyalty Factors
Loyalty Retention
Pearson 1 .830**
Correlation
Loyalty Sig. (2-tailed) .000
N 118 118
Pearson .830** 1
Correlation
Retention Sig. (2-tailed) .000
N 118 118
**. Correlation is significant at the 0.01 level (2-tailed).

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Source: Field Survey (2018)

5. Discussion
The study was aimed at examining the factors motivating employee loyalty and employee
retention in deposit money banks in Nigeria. Majority of banks in the country have their
corporate headquarters in Lagos and branches all over the country. To this end, employment
guidelines are centrally formulated at the headquarters and applied to all employees
irrespective of their branch locations. Although there have been studies on motivation and
employee loyalty and retention, there has not been generally acceptable criteria among
researchers. The findings of this study will reinforce the importance of those factors that keep
recurring in studies as the major factors for loyalty and retention in order to stem incessant
turnover especially in the Nigerian banking industry. It will further assist human resource
managers and management in formulating enduring and practical policies using appropriate
motivational factors.
The study found training and development, promotion and job security as the three most
important motivational factors for employee loyalty. It also found training and development,
job security plus reward and recognition in that order as the major motivational factors for
employee retention. The findings are not significantly different from some previous research
findings but imply that the motivational factors should be given the importance they deserve
in the workplace in general and banks in particular. World economy appears to depend largely
on knowledge and innovation which are enhanced through training and development.
The finding of this study is supported by Logan (2000) that employees will remain where
there are opportunities to learn and do new things. Other previous findings in support of the
present study include Dama and Isah (2015) and Samuel and Chipunza (2009) that training
and development stimulate loyalty and decision to stay in employees. This study showed that
training and development are critical factors for employee loyalty and retention. Messmer
(2000) found that one of the important factors in employee retention is investment on
employee training and career development. Garg and Rastogi (2006), explained that in
today’s competitive environment feedback is very essential for organizations from employees
and the more knowledge the employee gets, the more he or she will perform and meet the
global challenges of the market place and will be willing to remain with the organisation.
The outcome of this study differs from the study of Khuongi and Tien (2013), which revealed
that job satisfaction, supervisor support, training and development, teamwork, and working
environment all play crucial roles and significantly affect employees’ loyalty, although
training and development was named as one of the motivating factors. Also, Waqas et.al
(2014) reported that a strong relationship exist between job satisfaction and job loyalty
The current study shows that promotion and job security support employee loyalty while job
security, reward and recognition enhance employee retention. Job security is essential and
puts the employees at ease in order to do the work well. Promotion, reward and recognition
should be the outcome of jobs well done. The findings agree with the studies conducted by
Nyamkye (2012), Osinbajo et al. (2014). The findings differ from those of Clarke (2001) that

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retention is dependent on strong interpersonal relationship with colleagues. It also differs

from Oginni et al.(2018) that job satisfaction determines employee retention; and Nwangi and
Omondi(2016) that financial and non-financial needs influence loyalty and retention.
The finding is different from those that put high premium on other motivational variables
such as salary and fringe benefits (Nyamkye, 2012), and organizational environment
( Khongi and Tien, 2013), among others.. The importance of these findings is that employees
as human enterprise need some motivating factors to show loyalty and remain with the
organizations they are working for. The appropriate factors ought to be identified and
provided for them to ensure loyalty and continuity on the job.
6. Conclusion
Employee loyalty and retention are necessary for the competitiveness and sustainability of
organizations since employees control and use other resources of production. Disloyalty can
create problems for the system and turn it to a wasteful venture. It becomes necessary for
management to have motivated employees through the identification and provision of factors
that enhance loyalty and retention. It is very essential to understand that motivating factors
are diverse which tend to show that loyalty and retention are psychological. This study has
added to the body of knowledge that motivational factors of training and development and
job security are significantly related to employee loyalty and retention in the Nigerian banks.
Getting to understand the specific retention strategies is beneficial instead of applying general
or blanket strategies that may be disadvantageous in the long run.
7. Limitations
The study was limited to four of the 23 deposit money banks in Nigeria. Perhaps involving
more banks in the study could have influenced results. Its being difficult to ascertain the
genuineness of the respondents in answering the questions and statements of the
questionnaire is a limitation.
However, the aforementioned have not reduced the contribution of the study to knowledge.
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