Responsive Ad Slot

eSCAPE Book
Latest

Sports

Relationship Matters

Opinion

Zenith, Access, Wema, Fidelity raise pay as FirstBank, GTBank cut salaries

Zenith, Access, Wema, Fidelity raise pay as FirstBank, GTBank cut salaries


Three of the nation’s 23 banks effected cuts in staff pay last year while four others increased the average pay package of its staff, according to a report compiled by Thaddeus Investment Advisors & Research Ltd.

According to the investment firm, “We recently completed a proprietary analysis that reveals banks that are getting it right in terms of managing their workforce and those that are not.

It said that First Bank decreased its average salary per head in 2013 by 12% and improved its employee value added ranking by 5 spots relative to 2012, moving from 9th place to 4th place. In addition, its employees scored four more points than the 2012 fiscal year when it came to value-added. Its employees also increased their productivity by 3% despite the decrease in average salary.

GT Bank according to Thaddeus Investment,the toast of African fund managers decreased its average salary per head in 2013 by 26% while increasing employee count by 24% and also improved its employee value added ranking by 2 spots moving from third place to first place.

In addition, its employees scored seven more points than the 2012 fiscal year when it came to value-added. Its employees also increased their productivity by 14% despite the 26% decrease in average salary.

The report said that Sterling Bank, with the best dividend yield in the banking industry in 2013, maintained its last position for the second year in a row as the least paying bank in the industry on average.

The bank increased salaries on average by 7%, little less than average inflation in 2013 and its employees responded as the bank improved its employee value added ranking by 3 spots.

In addition, its employees scored two more points than the 2012 fiscal year when it came to value-added. Its employees also increased their productivity by 14% despite being the lowest paid in the industry and this was achieved with a 7% increase in average salary.

You can imagine what its employees can do with just a little bit more of motivation.

Access Bank on the other hand increased its average employee salary by 34% (despite decreasing employee count by 19% and turning over most of its executive management in the same year its first CEO let go of the reins at the helms of the bank.

Access Bank lowered its employee value added ranking by five spots relative to 2012 moving from fifth to 10th place. In addition, its employees scored five less points than the 2012 fiscal year when it came to value-added. Its employees also decreased their productivity by 8% despite the 34% increase in average salary.

Zenith Bank, another toast of Africa fund managers, increased its average salary per head by 29% and also lowered its employee value added ranking by four spots relative to 2012 moving from second place to sixth place. In addition, its employees scored five less points than the 2012 fiscal year when it came to value-added.

Its employees also decreased their productivity by 10% despite the 29% increase in average salary. The bank’s CEO during the period is now Governor of the Central Bank while its founding CEO is now back at the helms of the board of the bank as chairman.

According to Thaddeus, “Fidelity Bank increased its average salary per head by 12% without reducing employee count which we deem commendable and lowered its employee value added ranking by one spot relative to 2012 moving from 10th to 11th place. In addition, its employees scored four less points than the 2012 fiscal year when it came to value-added. Its employees also decreased their productivity by 63% despite the 12% increase in average salary.

Wema Bank increased its average salary per head by 32% and reduced its employee count by 14% simultaneously and lowered its employee value added ranking by one spot relative to 2012 moving from 12th to 13th place.

This was the highest spike in average salary per head in the Nigerian banking industry in 2013 and was overdue depending on whom you talk to. In addition, its employees scored four less points than the 2012 fiscal year when it came to value-added.

Its employees did increase their productivity level by a whopping 135% as a result of the 32% increase in average disposable income power. It needs to strive to bring in higher quality people relative to the overall employee head count and we see much better days ahead for the bank. Its employees are working a lot harder as the numbers reveal.

According to the investment firm, “The overall rankings for staff-value added not productivity is as follow, GT Bank; UBA; Sterling Bank; First Bank; Skye Bank; Zenith Bank; FCMB; ETI and Diamond. Others are Access Bank; Fidelity Bank; Unity Bank; Wema Bank; Stanbic Bank and Union Bank

The firm noted that Nigeria’s most illiquid bank, trading perspective, Stanbic IBTC’s stock price has risen 37% this year thus far and 94% in 2013 after a share reconstruction in the last quarter of 2012. It has the most expensive employees on average in the Nigerian banking industry though the gap between first and second has reduced from 32 to 30%. Access Bank has dethroned Union Bank from the second spot.

This is a bank that on many occasions trades less than $50,000 per day and is now Nigeria’s forthmost capitalized bank. Its brokerage arm pretty much has a stronghold on the leader board of trading transaction value on the Nigerian Stock Exchange.







Source: Vanguard


Share this post with your friends and also share your thoughts by adding your comments below. Follow us on Social Media - Add us to your Circles, like our Facebook Page, Follow us on Twitter, Follow us on Pinterest or Subscribe to our RSS feed for our latest posts.


No comments

Post a Comment