Duplo’s financial result has outlined the challenges in Nigeria’s finance sector, revealing that inflation and economic instability are leading to dissatisfaction with compensation and difficulties in retaining talent.
According to a press release from Duplo, 593 finance professionals call for inflation-adjusted salaries and better training support for employees.
Duplo conducts surveys to identify key issues in the finance sector
Duplo, a provider of technology solutions to optimize financial operations for businesses in Africa, conducted the 2024 Salary Report survey, focusing on issues impacting talent retention in Nigeria’s finance sector.
The survey included 593 finance professionals, with most respondents having 5-10 years of experience (31.5%), followed by those with 3-5 years (19.9%), and less than 3 years (18.6%).
The results showed that nearly 27% of respondents were very dissatisfied with their current compensation, while 29% were moderately dissatisfied. Only 3% reported being very satisfied with their pay, a decrease from 14.8% in 2023.
Economic instability and migration threaten talent retention
The survey found that economic instability (41.4%) and migration, commonly referred to as ‘Japa’ (34.5%), are the biggest threats to talent retention in the sector. 91.6% of respondents reported being negatively impacted by exchange rate fluctuations and inflation, underscoring the economic pressures on finance professionals in Nigeria.
The findings suggest that these challenges are leading to increased dissatisfaction and a growing need for competitive compensation strategies.
Salary negotiations linked to job satisfaction
The report also highlighted that professionals who regularly negotiate their salaries reported higher levels of satisfaction with their compensation. This indicates that salary negotiation plays a significant role in improving job satisfaction.
The findings align with broader industry trends showing that effective salary negotiations can contribute to greater financial growth and overall career satisfaction.
Training and professional development needed to boost earnings
The survey also examined the role of professional training in employee satisfaction. 79% of respondents reported receiving professional training in the past five years. In addition, 22.8% had relocated or pursued further studies to enhance their earning potential. However, only 12% received financial support from their employers for these initiatives.
The report suggests that organizations should invest more in employee training and development, especially in areas such as digital finance, data analytics, and compliance, to help workers increase their earning potential and improve job satisfaction.
Duplo’s recommendations for talent retention
Yele Oyekola, CEO and co-founder of Duplo commented on the findings, emphasizing the importance of inflation-adjusted compensation to retain talent.
“CFOs and finance leaders need to prioritize transparent and inflation-adjusted compensation packages to mitigate the current economic pressures and give themselves the best chance of retaining talent,” Oyekola said.
He also recommended that companies explore benefits such as flexible work arrangements, performance-based incentives, and upskilling opportunities to improve employee engagement and retention without overburdening budgets.
