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Over half of Nigerian finance workers unhappy with salaries – Report

According to a survey, 56% of Nigerian finance employees are dissatisfied with their salaries, primarily due to reduced spending power.

The 2024 Salary Report shows a significant drop in satisfaction, with only 3% of respondents expressing contentment with their pay, down from 14.8% in 2023.

Duplo, a Nigerian B2B payment automation startup, conducted a survey of 593 finance professionals from various sectors, including finance, technology, manufacturing, oil and gas, consumer goods, real estate, education, and agriculture, to shed light on the industry's growing discontent. Participants included interns and chief financial officers from both large and small organisations.

According to the report, 90.8% of respondents reported that Nigeria's high inflation and foreign exchange volatility had a negative impact on their earnings.

The rising cost of living, caused by naira devaluation and rising inflation, has significantly reduced workers' purchasing power, forcing employers to reconsider salary structures.

While some commercial banks have increased employee salaries in response to macroeconomic challenges, 37.7% of finance professionals polled reported no salary increases in the previous year. As competition for talent in the finance industry heats up, attractive compensation packages become increasingly important for retaining top professionals.

Employees earning less than ₦250,000 per month are more likely to be dissatisfied, with one-third feeling uncomfortable negotiating higher salaries.

Only 7.2% of finance professionals earn over ₦1 million monthly, and they are the most confident in negotiating salaries, indicating a significant income disparity in the sector.

This salary dissatisfaction is fuelling a growing trend of talent migration. According to the report, 22.8% of respondents have relocated in the last five years in search of higher pay and stability elsewhere.

Economic instability remains the most significant challenge to retention, cited by 41.4% of respondents, followed by migration trends (34.5%) and shifting employee expectations (31.7%).

Despite the turnover in the finance sector, the report indicates that professionals want more than just higher pay. Employees place an increasing value on career advancement opportunities, work-life balance, and transparent pay structures.

Organisations that provide inflation-adjusted salaries, professional development opportunities, and benefits that meet employee needs are more likely to retain top talent.

Yele Oyekola, CEO of Duplo, emphasised that businesses can use innovative benefits to attract and retain talent without significantly increasing their budgets. "Flexible work arrangements, performance-based incentives, and adequate technology solutions can help organisations get the best from their employees," according to him.

The survey also identifies an increasing trend of upskilling among finance professionals. Over 79% of respondents have taken training in the last five years, focussing on skills such as digital transformation, fintech, cybersecurity, compliance, and data analytics.

Despite these improved skills, many professionals remain dissatisfied with their pay, particularly when salaries do not reflect current economic realities.

As the finance industry faces increasing challenges in retaining skilled professionals, businesses must reconsider their compensation strategies and provide opportunities for career advancement that meet employee expectations. "CFOs and finance leaders need to prioritise transparent and inflation-adjusted compensation packages to mitigate current economic pressures and improve their chances of retaining talent," according to Oyekola.

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