Three out of the 23 banks in the country reduced staff salaries last year while four others increased the average pay package of its staff. A report compiled by Thaddeus Investment Advisors & Research Ltd.
According to the Investment Company “We recently completed a proprietary analysis that reveals banks that are getting it right in terms of managing their workforce and those that are not.
It said that First Bank decreased its average salary per head in 2013 by 12% and improved its employee value added ranking by 5 spots relative to 2012, moving from 9th place to 4th place. In addition, its employees scored four more points than the 2012 fiscal year when it came to value-added. Its employees also increased their productivity by 3% despite the decrease in average salary.
GT Bank according to Thaddeus Investment, the toast of African fund managers decreased its average salary per head in 2013 by 26% while increasing employee count by 24% and also improved its employee value added ranking by 2 spots moving from 3rd place to 1st place. In addition, its employees scored seven more points than the 2012 fiscal year when it came to value-added. Its employees also increased their productivity by 14% despite the 26% decrease in average salary.
The report said that Sterling Bank, the best dividend yield in the banking industry for 2013, maintained its last position for the second year in a row as the least paying bank in the industry on average. The bank increased salaries on average by 7% little less than average inflation in 2013 and its employees responded as the bank improved its employee value added ranking by 3 spots. In addition its employees scored two more points than the 2012 fiscal year when it came to value-added. Its employees also increased their productivity by 14% despite being the lowest paid in the industry and this was achieved with a 7% increase in average salary. You can imagine what its employees can do with just a little bit more of motivation.
Access Bank on the other hand increased its average employee salary by 34% (despite decreasing employee count by 19% and turning over most of its executive management in the same year its first CEO let go of the reigns at the helm of the bank. Access Bank lowered its employee value added ranking by 5 spots relative to 2012 moving from 5th to 10th place. In addition, its employees scored five less points than the 2012 fiscal year when it came to value-added. Its employees also decreased their productivity by 8% despite the 34% increase in average salary.
Zenith Bank, another toast of Africa fund managers, increased its average salary per head by 29% and also lowered its employee value added ranking by 4 spots relative to 2012 moving from 2nd place to 6th place. In addition, its employees scored five less points than the 2012 fiscal year when it came to value-added. Its employees also decreased their productivity by 10% despite the 29% increase in average salary. The bank’s CEO during the period now runs Nigeria’s Central Bank and its founder is now back at the helm of the board of the bank.
According to Thaddeus Fidelity Bank increased its average salary per head by 12% without reducing employee count which we deem commendable and lowered its employee value added ranking by 1 spot relative to 2012 moving from 10th to 11th place. In addition, its employees scored four less points than the 2012 fiscal year when it came to value-added. Its employees also decreased their productivity by 63% despite the 12% increase in average salary.
Wema Bank increased its average salary per head by 32% and reduced its employee count by 14% simultaneously and lowered its employee value added ranking by 1 spot relative to 2012 moving from 12th to 13th place.
This was the highest spike in average salary per head in the Nigerian Banking industry in 2013 and was overdue depending on whom you talk to. In addition, its employees scored four less points than the 2012 fiscal year when it came to value-added. Its employees did increase their productivity level by a whopping 135% as a result of the 32% increase in average disposable income power. It needs to strive to bring in higher quality people relative to the overall employee head count and we see much better days ahead for the bank. Its employees are working a lot harder as the numbers reveal.
According to the investment firm “The overall rankings for staff-value added not productivity. GT Bank;UBA ; Sterling Bank; First Bank; Skye Bank; Zenith Bank; FCMB; ETI and Diamond. Others are Access Bank; Fidelity Bank; Unity Bank; Wema Bank; Stanbic Bank and Union Bank
According to Thaddeus Investment Advisors Nigeria’s most illiquid bank, trading perspective, Stanbic IBTC’s stock price has risen 37% this year thus far and 94% in 2013 after a share reconstruction in the last quarter of 2012. It has the most expensive employees on average in the Nigerian banking industry though the gap between 1st and 2nd has reduced from 32% to 30%. Access Bank has dethroned Union Bank from the 2nd spot. This is a bank that on many occasions trades less than $50,000 per day and is now Nigeria’s 4th most capitalised bank. Its brokerage arm pretty much has a stronghold on the leader board of trading transaction value on the Nigerian Stock Exchange. Its staff still rank 14th out of a possible 15 in terms of staff value-added in the industry. Its employees; total value-added points score did improve from -12 to -7 from 2012 – 2013. Its employees are giving back less than they are receiving from the bank.
The Nigeria arm of ETI, its cash cow though it has not been as generous as anticipated when the merger with Oceanic Bank took place, has continued to be its greatest ASSET and also its greatest LIABILITY. The bank appears to be on course under its new CEO as the Nigerian staff count increased 30.5% (2,194 employees) in 2013 and average wage per head decreased by 7%. Based on the above events, they just might be onto something as long as the new additions are bringing quality and not just enthusiasm.
