CHAPTER ONE

INTRODUCTION

1.1 Background Of The Study

Employees’ training and development is very important for employees’ retention and organizational performance. A well informed employee exudes confidence and performs best with little supervision. Unlike in the past, where employees were seen as part of machinery, reforms in labour relations have now placed employees at the pinnacle of most organizations (Vemić, 2007).

According to Acton & Golden (2002) the prominence of training is twofold. From an institutional perspective, employee training is important for both organizational operations and organizational advancement. From an employee stand point, training and development undertakings are vital for both skills development and career advancement. Absence of trained and skilled employees has prompted organisations to inquire methods of retaining their educated and skilled employees. However, that is why most organisations’ thinking is focused on improvement of their training and development initiatives and investment. Imperative to stress is that training investment received direct return in the form of improved workplace productivity. Kellie (1999) notes that the corporate sector experienced productivity enhancement through application of training and development. In the same vein, Brannick et,al. (2002) acknowledges that extensive training practices act as a vital channel to enhance realization of desired service performance standards in the public sector space.

Organizations are therefore ready to go any length to attract and retain the best of human resource, such as through poaching so as to achieve their objectives. In the advent of technology, especially ICT has moved the focus of organization from using brawl strength to information management. As part of its strategies to remain relevant in an industry and be ready for competition, organizations are focusing more on curbing high attrition through Training and Development. The need for improved productivity and retention of performing employees has become universally accepted and that its dependence on efficient and effective training is apparent. It has further become necessary in view of advancement in modern world to invest in training. Thus the role played by staff training and development can no longer be over-emphasized. Staff training and development are based on the premise that staff skills need to be improved for organizations to grow.

Training is a systematic development of knowledge, skills and attitudes required by employees to perform adequately on a given task or job (Oluoch, 2013). It is also generally agreed that at each level of organizational existence, training of human resources is critical to adequately prepare them to meet the goals of the organization through the acquisition of relevant knowledge, attitude and skills. Staff training and development and its impact on employee retention has been identified by various scholars and authors to be very crucial to an organization and its effectiveness (Oluoch, 2013; Gupta, Bostrom, & Huber, 2010; Aguinis, & Kraiger, 2009).

1.2 Statement Of The Problem

The issue of staff retention, especially skilled staff is a major concern to managers. This is because all organisations are set up to achieve specific goals and that human resource is the most crucial resource in the achievement of the goals. To retain employees requires training and development as part of motivation; these are the factors that motivate employees to stay in their jobs. This is because skilled employees enable organisations to gain competitive advantage. This agrees with Awolusi (2013), that a highly motivated person works hard towards achievement of organisational goals, given the ability and adequate understanding of the job. Most organization in Nigeria tends to seek the services of experienced personnel thus increasing their wage bill which in turn affect organizational performance. It is to this regard that the study desire to analyze the impact that employee training and development has on retention in the Nigerian Banking sector

1.3 Aim And Objectives Of The Study

The aim of this research is to establish the impact that employee training and development has on retention in the Nigerian Banking sector.

Objectives

1. To critically analyze the employee training and development process in banks in Lagos State.
2. To demonstrate the importance of training and development to employees in banks in Lagos State.
3. To examine the relationship between employee training and development and retention strategies in banks in Lagos State.
4. To identify different approaches towards training and development in banks in Lagos State.
5. To make recommendations on alternative retention strategies that can be adopted in banks in Lagos State.

1.4 Research question

The study came up with research questions so as to ascertain the above objectives of the study. The research questions for the study are:

1. What is the nature of employee training and development process in banks in Lagos State?
2. What is the importance of training and development to employees in banks in Lagos State?
3. What is the relationship between employee training and development and retention strategies in banks in Lagos State?
4. What are approaches towards training and development in banks in Lagos State?
5. What are alternative retention strategies that can be adopted in banks in Lagos State?

1.5 Research Hypothesis

H01: the employee training and development process in the Nigerian banking sector is not effective

H02: training and development to employees is not beneficial to the Nigeria banking sector

H03: there is no significant relationship between employee training and development and retention strategies

H04: the approaches towards training and development in Nigeria banking sector does not enhance employees’ retention

H05: alternative retention strategies that cannot be adopted in Nigeria banking sector

1.6 Significance of the study

The study on impact that employee training and development has on retention in the Nigerian Banking sector will be of immense benefit to the entire banking sector in Nigeria in the sense that the findings of the research work will explain to the bank management and other organisation in Nigeria that practices employees’ training and development on the best kind of training to enroll their staff on. The study will serve as a repository of information to other researchers that desire to carry out similar research on the above topic. Finally the study will contribute to the body of the existing literature on employee training and development has on retention in the Nigerian Banking sector.

1.7 Scope of the study

The study on impact that employee training and development has on retention in the Nigerian Banking sector will focus on commercial banks in Lagos State.

1.8 Limitation of the study

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9 Definition of terms

Emplyees’ Training: Employee training is a program that is designed to increase the technical skills, knowledge, efficiency, and value creation to do any specific job in a much better way.

Employees’ Development: Employee development is defined as a process where the employee with the support of his/her employer undergoes various training programs to enhance his/her skills and acquire new knowledge and skills.

Employees’ Retention: Employee retention refers to the ability of an organization to retain its employees.