Literature their human resources (Aston and Morton, 2005) as

Literature Review

Conceptual Framework

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development and management of Human Capital is probably the largest task in any
corporate or say formal establishment irrespective of the ownership structure.
The priority of organization is their human resources (Aston and Morton, 2005)
as such, human capital management is the most valuable asset that enables an
organization to meet their goals irrespective of where the organization is
located or the service render or product sold. This does not exclude the banks.
A bank can grow if the human capital management which is referred to as talent
management is utilized in the right proportion to the benefit of the bank.
Talent management involves how employee with the right skills and knowledge are
attracted, engaged and develop (Horwitz, Heng and Quazi, 2003).


to (Oladapo, 2014) Talent management simply refers to an organized syystem of
attracting, selecting, hiring, engaging, training and developing, retaining and
utilizing top talents to an organization’s best advantage. It aims at ensuring
the right job placements at the right time, in the right position for the right
candidates to deliver their best and remain committed to the organization.
Though, talent management is tailored towards the ethics and core values of an
organisation, but the focus is on developing and end ensuring optimal
exploration of high potentials or talents of individuals within the
organization more quickly than ever to improve the competitive edge.

is one of the critical resources for organizations to attain competitive
advantage”(Zhang, et al, 2012) and talent management will fail without top
management commitment to retaining its workforce (Lockwood, 2006) as cited in
(Izwar & Aerni, 2014).

talent management is done effectively, the result is a stronger bond between
the employee who is talented and the organization they work for or wish to work
for. They begin to see themselves in the light of the value they offer and the
joy of working that they get in return, hence they remain loyal and even more
productive. It ensures that employees remain professional at all times in their
business practices, serve meritoriously, have the right people made up of
seasoned professionals, who have excelled in their various professions,
possessing the requisite integrity, skills and experience.

the task of running an organization in this recent economic and democratic
times has now gone father and deeper than just hiring top talents from
institutions, this is considering also how complex human beings have evolved to
become over the last few years. It involves retaining talents with high
performing potentials who can add value to the organization. This requires but
not limited to creating recognition programs, offering adequate remuneration,
career development opportunities, promotion, interesting and challenging
responsibilities, conducive work climate for employees to perform at their
best, work-life balance, trust and confidence in management, involvement in
decision making and reward since they provide a strong basis for retention.
This can have a lasting impression on the hearts and minds of employee and
continue to substantiate employees’ perception that they are valued by their
employers (Silbert, 2005).

a general consensus an organization’s reward system is responsible for the
quantum of influence on the performance as well as their desire to remain
connected with such organisation.  (Bamberger
& Meshoulam, 2000, MacDuffie, 1995). Focusing on retention is also very
essential for job satisfaction and employee commitment because it would help to
fulfil basic needs of employees and striving to attain organization’s goals.

in his work stated that talents can be retained if talented employees have a
positive perception of their employer and are less likely to voluntarily leave,
have greater employee loyalty, and improved performance. By experience and
diligent research, organizations that provide career development opportunities
to employees rank higher in the likelihood to experience a low voluntary turnover
(resignation in regular parlance) of top performers which can deplete
organizations’ talents. When employees have the confidence that their
organization holds their development dearly, they often  become more committed and loyal to their
organization. In other word, employers need to demonstrate to employees that
talent management is a priority for all employees, sourcing talents, and
rewarding managers for improvement. (Schuler, et al., 2011). “The commitment
will be mutual and the arrangements for involvement will be genuine, i.e.
management will be prepared not only to listen but to act on the views
expressed by employees” (Armstrong, 2006).

is essential that management keep employees informed on matters that affect
them and provide platforms that encourage them to freely express their views and
opinions which are necessary for change. Commend employees and make them
understand the contributions they can make and how it would benefit them.
Organizations that identify talent, enrich job contents to motivate and retain
talented people would certainly (Guthridge, McPherson, & Wolf, 2009) compete
successfully and earn a competitive advantage. Several studies have shown that
talents are the fabric of every organization. Often times, more intelligent
employees and top performers feel they are highly sought after as a result of
their talent and as such, if they do not feel appreciated, at least to a level
of personal fulfilment in an organization, they leave the organization for
another competing firm/organization and do not stay long irrespective of how
much has been invested in training and developing them. On the other hand if
retained, an organization would not remain underdeveloped, rather retention
would enhance growth and survival of the organization irrespective of

market condition keeps fluctuating rapidly so does the need for organizations
to ensure its workforce is highly qualified, skilled and motivated to take on
the ever growing competition. This is especially as the conventional market
place expands and new field are emerging from old ones, the financial industry
is not left out. For example, as an examine the banking and financial industry,
we see a new trend in the new age digital currency (crypto-currency) which as at
the time of this work is distorting the financial markets. To this end, it will
be expected that banks will manage their talents well enough in order not to
loose them to current trends.

is therefore evidence of an organization which strives to make a difference to
possess a highly qualified and motivated workforce. As a result of the
foregoing, the demand for committed employees is high, especially for key

management apparently centers on key employees who can have a disproportionate impact
on business performance (Armstrong, 2006). Ultimately, its aim is majorly to
attract, develop and retain top talents (Stewart & Harte, 2010). Effective
talent management helps to avert the possible disruption associated with the
departure of talented people and adopting required strategies to retain them,
be more productive and gain greater efficiencies.





of the primary concerns of many organizations today is employee retention. As defined
by (De Long & Davenport, 2003; Schramm, 2006) “Retention is viewed as a
strategic opportunity for many organizations to maintain a competitive
workforce”. Attracting and retaining a talented workforce keeps many vice
presidents of HR thinking of possibilities and opportunities (Kaliprasad,

is seen to be improved when employees are offered compensation and benefits,
have a supportive work culture, can develop and advance and balance work and
life activities (Messmer, 2006). Retention of talents encompasses all the
activities, practices, systems, and strategies likely adopted by an
organization geared toward preventing talented employees from voluntary
resignation or redundancy and/or leaving an organization prematurely .Growth
opportunities are offered to employees to lower turnover intentions (Allen,
Shore and Griffeth, 2003; Steel et al., 2002). Silbert (2005) argued that
individuals who are skilled and better positioned, may find similar job
opportunities elsewhere but to retain these ones, organizations may need to
formulate socially supportive policies. According to PSUWC, (2013) Employee
Commitment refers to one’s feelings of loyalty to an organization because he or
she believes in the organization and has an emotional attachment to and
identification with the organization”. A committed employee identifies
with the business and wants to stay with the brand.

drive for commitment is targeted at winning the ‘hearts and minds’ of
employees, identify with the organization, exert themselves more cursorily on
behalf of the organization and remain committed to the organization with the
highest levels of committment. This type of commitment is eviidently the result
of a supportive work environment in which individuals are treated fairly and
the value of individual contributors is embraced (Carter, 2015). Building
positive supervisory relationships is a powerful practice for retaining
talented employees. This will help to determine what works, what doesn’t, what
lies ahead, what potential is required, what talent should be retained, what is
not worth the effort, etc. The level of support employees receive from
management, job security, the personal attributes they bring to the job, the
industry norms and the way all these components are managed in the workplace,
impact worklifewhich can equally affect employee commitment and lower turnover
rate (Mulvaney, et al. 2006; Cleveland, et al. 2007; Namasivayam & Zhao
2007; Karatepe & Uludag 2007; Rowley and Purcell, 2001).Although, managing
a talented workforce is challenging (Schuler, Jackson, & Tarique, 2011;
Scullion, Collings, & Caligiuri, 2010; Stahl et al, 2012).

major challenge many organizations grapple with is the exit of talented
employees, when they leave with all the competence and wealth of experience,
most of which were acquired at the expense of the organization.


Theoretical Framework

study is anchored on the human capital theory by Becker (1964). This theory suggests
that human capital – the composition of employee skills, knowledge, and
abilities – is an essential driver of employee performance. This theory has
assumed wide acceptance in the field of human resource management (Crook, Todd,
Combs, Woehr, & Ketchen, 2011; Fisher, 2009; Lepak & Snell, 1999;
Nafukho, Hairston, & Brooks, 2004; Strober, 1990). The human capital as a
competitive resource that organizations can invest in and is valued by the
organization since it increases productivity(Kessler & Lülfesmann, 2006;
Lepak & Snell, 1999; Nafukho, et al., 2004; Strober, 1990). The relevance
of this theory is that if organizations pursue goal congruence, and focus more
on retaining top performers, the huge amount invested in top performers pays
off with long term benefits to the organization. If employees are  invested in adequately, well managed and
retained, they will be more creative and innovative, they will also be readily
useful and available to the organization to do the job for all the right
reasons, and goal achievements becomes glaring and tangible.


Talent Management Studies

management has been studied by various authors but in different aspects and
directions. In today’s banking business, the performance of banks employees
(the good talents) increasingly determine to a greater level, the success of
the bank among its peer. However, the process of talent management in the bank should
be able to contribute positively on a sustainable basis to the bank’s
profitability and growth.

qualitative study by Lovebrant and Gerdrup (2012) on how talent management is
implemented in three major leading Swedish banks found that one of the main
reasons for talent management initiative is to ensure qualitative succession
for key positions in the banks. The focus of the banks appears to be on
potential executives at the group level. However, the banks use rigorous
selection process to ensure that the candidates participating in talent
management has the required talent to succeed.


all banks focus their evaluation on what talents to enlist in the programs
while measurements concerning the programs’ impact are left hanging.

a study of 13 European banks which are among the top 30 in the region by market
capitalisation, in eight countries in Europe, Putzer, Sermpetis and Tsopelas (2008)
report that the growth of European banks makes it more difficult for them to fill
main position with qualified personnel. Based on interviews with top human
resource executives of the banks, the study found that European banks face
shortages in the number of top executives needed, and in the specific skills
executives must have for banks to execute their business plans. The study concluded
that most bank don’t have enough qualified people inside the organization to
fill critical positions because only 36% of the banks manage to fill critical vacancies
quickly and effectively with internal talent, while only few banks benefited
substantially from talent management efforts.


(2014) also investigated the impact of effective talent management on employee
core competencies in Plateau State University, Bokkos. Using a non-empirical
approach, the result revealed that the skills, knowledge and abilities of
employees impact job descriptions and performance management. The study
concluded that tying core competencies with talent management is a win-win
proposition as it provides organizations with a means of upgrading and
retaining their valuable workforce. Wuim-Pam (2014) recommends the creation of
a unique competency models where this skill is lacking within the organization
itself and identification and possession of high-performing behaviours.

an exploratory study by Doherty (2010) assessed employee engagement and how to
attract and retain the best talents. In the study, Rabo bank International was
assessed covering over 340 offices in over 40 countries worldwide because Rabo
bank was finding it difficult to consistently manage the performance of its
employees to the same standards globally. The study recommended that
organizations should be focused on people rather than on processes to save the
organizations unnecessary spending of money on recruitment and training. The
study revealed that job security, compensation, and opportunity for advancement
were not found to have predictive value for employee retention rates. Though has
however finally shown that although pay and benefits initially attract employees,
it is not the primary reason given for retaining them.


Talent Management in
Nigerian Banks

efforts undertaken by banks for financial growth as well as competitive advantage
requires detailed appraisal of talent management efforts. Talent management is
very important as filling of vacancies by internally grown and developed talent
is cheaper and better in most cases than using external talents that are not
familiar with the core value of the bank.

the best talent managers can tap strong internal contenders for such roles,
many others will be forced to fill pivotal jobs with second-tier internal talent
or with external candidates – a relatively expensive and risky approach for
banks”(Putzer, Sermpetis and Tsopelas, 2008:1).


United Bank of Africa (UBA)         

UBA which is the subject of this research work, they strongly believe that
people are critical to their success in building a sustainable and dominant
business. The bank goes “to great ends to source, attract, recruit, develop and
retain the best talents where-ever they may be in the world”. To this end, the
bank states that it “recruits, develop and retain a highly talented workforce; provide
a non-threatening environment that encourages and rewards role-model
performance”. It also “helps the work-force maintain a healthy balance between work
and their personal lives, and provide competitive compensation and benefits” to
the talents.

bank refers to its employees as the most important asset. Learning methods
adopted by the bank for the benefits of the employees range from e-learning programmes,
class-room trainings to off-site trainings. Proactive steps are taken to
enshrine the bank culture in the hearts of our employees. “UBA runs a robust
goal-driven Performance Management System which measures each employee’s
performance against care-fully defined targets, their level of team-work and
the organization’s performance”. The system seeks to reward Role Model performance
accordingly while at the same time, helping least performing Staff to get
better on the job. The bank asserts that it understood “the powerful impact of
rewards can have in motivating role-model employees and teams, and thus strive
to provide monetary and non-monetary rewards accordingly”.




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