Strategic Talent Retention Amidst High Turnover: Evidence from Deposit Money Banks in Abeokuta, Nigeria

Abstract

The escalating flight of skilled professionals in Nigeria’s banking industry, popularly referred to as the “Japa” syndrome, has raised concerns about talent loss, erosion of institutional memory, and operational vulnerabilities. This study examines the impact of strategic talent retention practices on operational efficiency and financial performance in selected Deposit Money Banks (DMBs) in Abeokuta, Ogun State. Adopting a descriptive survey design and a census of 170 technical and management staff across five banks, data were collected using a structured questionnaire and analysed with Pearson Product-Moment Correlation. Of the 170 questionnaires administered, 162 were returned and found usable (95% response rate). Results indicate a strong positive correlation between strategic talent retention and operational efficiency (r = 0.784, p < 0.001) and a very strong positive relationship between retention strategies and financial performance (r = 0.812, p < 0.001). Item‑level analysis further reveals that flexible work arrangements, recognition programmes, and career development opportunities were the most valued non‑monetary incentives among respondents. Drawing on Herzberg’s Two‑Factor Theory and the Resource‑Based View, the study argues that strategic retention represents a critical human resource capability and a source of competitive advantage for regional banking hubs operating in volatile, talent‑constrained environments (Boxall & Purcell, 2016; Collings et al., 2019). The paper concludes with implications for HRM theory and practice in emerging markets and offers actionable recommendations for managers.