Inflation and economic instability affect talent retention in the Nigerian financial sector

Duplo’s financial results have highlighted the challenges of Nigeria’s financial sector, revealing that inflation and economic instability lead to pay dissatisfaction and difficulty retaining talent.

According to a press release from Duplo, 593 finance professionals are demanding salaries adjusted to inflation and better support for employee training.

Duplo conducts surveys to identify key issues in the financial sector

Duplo, a provider of technology solutions aimed at optimizing the financial operations of businesses in Africa, conducted the Salary Report 2024 survey, focusing on issues impacting talent retention in the Nigerian financial sector.

The survey covered 593 finance professionals, with most respondents having 5-10 years of experience (31.5%), followed by those with 3-5 years (19.9%) and less than 3 years (18.6%).

The results showed that almost 27% of respondents were very dissatisfied with their current compensation, while 29% were moderately dissatisfied. Only 3% say they are very satisfied with their salary, compared to 14.8% in 2023.

Economic instability and migration threaten talent retention

The survey reveals that economic instability (41.4%) and migration, commonly known as “Japa” (34.5%), pose the biggest threats to talent retention in the sector. 91.6% of respondents reported being negatively affected by exchange rate fluctuations and inflation, highlighting the economic pressures placed on financial professionals in Nigeria.

The results suggest that these challenges lead to increased dissatisfaction and a growing need for competitive compensation strategies.

Salary negotiations linked to job satisfaction

The report also highlights that professionals who regularly negotiate their salaries report being more satisfied with their compensation. This indicates that salary negotiation plays an important role in improving job satisfaction.

The findings align with broader industry trends, showing that effective salary negotiations can contribute to greater financial growth and job satisfaction.

Training and professional development needed to increase revenue

The survey also examined the role of job training in employee satisfaction. 79% of respondents said they had received professional training in the past five years. Additionally, 22.8% had moved or pursued additional education to improve their earning potential. However, only 12% received financial support from their employer for these initiatives.

The report suggests that organizations should invest more in employee training and development, particularly in areas such as digital finance, data analytics and compliance, to help workers increase their earning potential and improve their job satisfaction.

Duplo’s recommendations for talent retention

Yele Oyekola, CEO and co-founder of Duplo commented on the findings, highlighting the importance of inflation-adjusted compensation to retain talent.

“CFOs and financial leaders must prioritize transparent, inflation-adjusted compensation programs to alleviate current economic pressures and give themselves the best chance of retaining talent. » said Oyekola.

He also recommended companies explore benefits such as flexible work arrangements, performance-based incentives and upskilling opportunities to improve employee engagement and retention without overstretching budgets.