The Impact of Financial and Non-Financial Rewards on Employee Migration Intentions in Lagos Banking Sector

Abstract

The Nigerian banking sector has been facing a significant exodus of skilled employees in recent times which has continued to threaten the sector's development. However, despite numerous studies to address this phenomenon, fewer empirical studies have explored how financial and non-financial rewards impact the migration intention of employees in the banking sector in Nigeria. This study therefore examines how reward systems including financial and non-financial affect the migration intention of employees in Lagos banking sector. A cross-sectional design with purposive and proportionate sampling was adopted for the study. The purposive sampling was adopted to select eight banks in the Mainland Local Government Area of Lagos, Nigeria while a proportionate sampling was used to sample the respondents to ensure adequate representation across the banks. A structured questionnaire was used for collecting data from a sample size of 99 which was determined from a population of 131 in the selected banks using the Yamane formula. However, only 89 responses were obtained across the selected banks and were then statistically analysed using descriptive statistics for the socio-demographic data. Correlation with multiple regressions was utilised for hypothesis testing at a 5% significance level and the study found that both financial and non-financial rewards significantly affect employees’ migration intention. Therefore, the management of banks should improve on the existing financial reward systems to make them more globally competitive as this would enhance talented employees’ retention and reduce employees’ migration intention in the banks.