A new report from Duplo, a provider of technology solutions to optimize financial operations for businesses in Africa, has highlighted the need for inflation-adjusted compensation packages and better training support for staff to address talent retention challenges in Nigeria’s finance sector.
The Duplo 2024 Salary Report is based on a survey of 593 finance professionals, with the majority of respondents falling within the 5-10 years of experience range (31.5%), followed by those with 3-5 years (19.9%) and less than 3 years (18.6%).
According to their responses, satisfaction with compensation remains low, with nearly 27% of respondents very dissatisfied and 29% moderately dissatisfied with their current compensation. Only a small portion (3%) report being very satisfied with their current compensation (down from 14.8% in 2023), indicating a growing need for more attractive and comprehensive compensation strategies.
The survey also revealed that economic instability (41.4%) and migration – commonly referred to as ‘Japa’ – (34.5%) represent the biggest threats to talent retention in the sector. 91.6% of respondents have been negatively impacted by recent exchange rate fluctuations and rising inflation, underlining the economic pressures on finance professionals in the country.
On the contrary, professionals who regularly negotiate salary adjustments reported higher levels of satisfaction with their compensation, highlighting the value of negotiation skills. These findings align with broader industry trends, which indicate that salary negotiations can significantly boost job satisfaction and financial growth.
The report also touches on the extent and impact of professional training on compensation and satisfaction. 79% of respondents said they have had some professional training in the past five years, and 22.8% have relocated or pursued further studies to enhance their earning potential, with only 12% reported receiving financial support from their employers for these endeavors. This points to an opportunity for organizations to invest more in their employees’ professional growth. The report also recommends that finance professionals aiming to increase their earning potential should focus on acquiring in-demand skills such as digital finance, data analytics, and compliance.
Speaking on the findings of the survey, Yele Oyekola, CEO and co-founder of Duplo, said, “CFOs and finance leaders need to prioritise transparent and inflation-adjusted compensation packages to mitigate the current economic pressures and give themselves the best chance of retaining talent. Beyond salaries, organizations can explore innovative benefits such as flexible work arrangements, performance-based incentives, and adequate technology solutions to retain and get the best from top talent without overburdening their budgets. Employee upskilling can also drive higher levels of engagement that is critical to fostering loyalty and maintaining a competitive edge in the marketplace.”