Employee Productivity at Nigeria’s top five banks – Access, Zenith, GTB, UBA and FirstBank – improved 23 percent to N75.6 million in 2017 from N61.9 million, according to a business a.m. analysis of their revenues. An analysis of employee productivity levels at the sampled banks indicates that in 2017 each staff of the five banks averagely contributeed N75.6 million to the revenue pool of the banks for the period under review.
The analysis carried out via a simple comparative metric of revenue against staff strength of the institutions showed Access Bank had the most efficient staff with a staff productivity level of N115 million per head.
This was significantly higher than N93 million recorded in 2016. The increase though may well have to do with marginal reduction in staff strength from 4,089 in 2016 to 3,959. The staff collectively increased the
bank’s revenue by 20 percent.
Zenith Bank, which led with revenues of N745 billion in 2017 as against N507 billion in 2016, recorded a staff productivity of N105 million per head as against N71 million recorded in 2016.
Although Zenith Bank staff size dropped to 7,074 in 2017 from 7,120 in 2016, there was also improved staff productivity as revenue grew year-on-year by 47 percent in 2017.
Guaranty Trust Bank was next with staff productivity standing at N80 million per staff in its employ in 2017 as against N79 million achieved in 2016. This was evident in the bank’s marginal revenue growth, which stood at N419 billion in 2017, despite a one percent increase in its staff strength.
First Bank followed with an increased staff efficiency of N53 million per head from N43 million in 2016. The bank had 8,748 employees in 2017 as against 9,253 in 2016. Despite the drop in the number of staff, FBN was able to increase revenue by 16 percent to N469 billion frm its 2016 figure of N405 billion. UBA Plc. on the other hand, had the largest staff base amongst Nigeria’s tier-1 banks despite a reduction from 12,285 in 2016 to 11,955 in 2017. The bank made a revenue of N325 billion in 2017, which happens to be the least revenue figure amongst its fellow tier 1 banks.
The bank also recorded the least staff efficiency with N27 million per head, which means one staff made contributed N27 million to total revenue in 2017. This is however an improved performance of 27 percent when compared with the N21 million per staff recorded in 2016. Analysts say for corporates and banks to earn good performance from their employees, adequate attention should be paid to staff performance appraisal. They noted that staff skills and potential can only be maximized through clear and consistent goals and standards that are well communicated to the employees while employees’ participation in appraisal processes should be encouraged.
Sound employees productivity can also be enhanced postappraisal interview with every employee where efforts should be made to discuss the performance rating during the period under review in identifying the shortfall as well as changes required for better performance.
Employers can also guide and direct employees on ways by which performance can be improved.
By Adesola Afolabi & Oluwaseun Afolabi
Asia January 29, 2020