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 to produce 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 scarce capability 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 term to 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 by developing improved processes for attracting, developing, retaining and utilizing people with the required skills and aptitude to 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 grew up to support this function were the batch payroll system and in this role, the personnel department became a well understood business 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 has become 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 this gives 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:
- examine the effect of Talent management on incentives among employees of selected commercial banks in Lagos State;
- ascertain the influence of Talent management on salary among employees of selected commercial banks in Lagos State;
- determine the effect of Talent management on job security of employees of commercial banks in Lagos State and
- 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.
- What is the effect of Talent management on Incentives among employees of selected commercial banks in Lagos State?
- What is the influence of Talent management on salary among employees of selected commercial banks in Lagos State?
- What is the effect of Talent management on job security of employees of selected commercial banks in Lagos State?
- What relationship exists between Talent management on supervisory support among employees of selected commercial banks in Lagos State?
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;
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.
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 constantly do 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.
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.
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 managem