DETERMINING EFFECT OF EMPLOYEE LOYALTY ON FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

Financial performance of the any business organization makes it possible for businesses to serve the interests of many stakeholders without a better financial performance from the banking industry, it will be impossible to maximize shareholder wealth and provide equity investors with returns on their investments. This study aimed at determining the effect of employee loyalty on the financial performance of deposit money banks in Nigeria. Survey research design was adapted, management of deposit money constitute the population and primary source of data was used. Structural Modelling Equation was used as a tool of analysis. The result revealed that, employee loyalty has a significant effect on financial performance of deposit money banks in Nigeria. The study concluded that when Nigerian deposit money banks pursue policies that are rewarding and fulfilling their employees are more committed, satisfied and loyal to the company, which has a positive effect on the company's financial performance. recommendation include banks should ensure that employees are trained and involved in the management of change for organizational survival and super profits, because if banks undermine the contribution of employee in managing their banks, the result will be low financial performance.