EFFECTS OF ELECTRONIC BANKING ON EMPLOYEES’ RETENTION IN BANKS

Abstract

The continuous retrenchment of banks’ employees due to the introduction of new technology remains a matter of concern among several researchers. This study therefore examines the effect of electronic banking on employee retention in banks. The objectives of this study are to ascertain the relationship between electronic banking and skilled employee retention in banks; and to determine how electronic banking affect employee retrenchment in banks. To achieve these objectives, descriptive research design was employed and questionnaires were administered to the staff of Guaranty Trust Bank. Spearman’s rho model was employed to test hypothesis one, and Logit Binary regression model was employed to test hypotheses two. Arisen from the analysis of the study, the study reveals that there is significant relationship between electronic banking and skilled employee retention in banks; and electronic banking has significant effect on employee retrenchment in banks. Following the findings of this study, the researcher recommended that the need for skilled employee retention in banks cannot be overemphasized; banks should ensure that skilled employees are retained despite the introduction and employment of electronic banking services. However, electronic banking services can be employed as a more efficient tool to replace none performing employees in banks, especially in the area where electronic banking services can replace human effort.