STRATEGIC HUMAN RESOURCE PRACTICES AND EMPLOYEE PERFORMANCE IN THE NIGERIAN BANKING SECTOR

Abstract

This study examined the relationship between strategic human resource (HR) practices and employee performance in the Nigerian banking sector. The rapid transformation of Nigeria’s financial industry, driven by regulatory reforms, technological innovation, and increased competition, has heightened the need for banks to adopt strategic approaches to managing human capital. The study focused on key strategic HR practices, including workforce planning, training and development, performance appraisal, compensation, and succession planning, as well as integrated digital HR systems. A quantitative research design was adopted, and data were analyzed using multiple regression analysis to determine the extent to which these practices influence employee performance outcomes. The findings revealed a strong positive relationship between strategic HR practices and employee performance (R = 0.781), with 61% of the variation in employee performance explained by the selected HR variables. Training and development emerged as the most influential predictor, followed by compensation and workforce planning. Performance appraisal and succession planning also demonstrated significant positive effects. Additionally, digital HR practices, including e-recruitment, e-learning platforms, and digital performance management systems, significantly enhanced employee retention, motivation, and productivity. The overall regression models were statistically significant, leading to the rejection of the null hypothesis and confirming that strategic HR practices significantly influence employee performance in Nigerian commercial banks.