Human Resource Management Practices and Employee Satisfaction in Microfinance Banks in Nigeria

Abstract

Committed employees are important for firms to achieve and sustain competitive advantage. HRM practices are tools used by organisations to get the best out of their workers and hence, achieve superior business performance. The goal of this study is to investigate HRM practices and employee satisfaction in microfinance banks in Nigeria. A purposive sample of 60 senior employees of 10 microfinance banks in Nigeria was used for this study. 60 questionnaires were returned but 59 were found usable for the analysis. In analyzing our data, Pearson correlation, ANOVA, and multiple regression techniques were used. The result shows that a significant positive association exists between human resource planning, training and development, employee compensation and employee satisfaction. However, an insignificant positive relationship exists between work environment and employee satisfaction. Only three out of the four hypotheses are supported. The authors, therefore, recommend that organizations that want to remain competitive must ensure that various stakeholders are satisfied (including employees) by implementing a robust HRM practices