THE EFFECT OF COMPENSATION POLICIES ON EMPLOYEE ATTRACTION AND RETENTION IN THE NIGERIAN BANKING SECTOR: A CASE STUDY OF FIRST BANK PLC, AKURE

Abstract This study investigates the effect of compensation policies on employee attraction and retention in the Nigerian banking sector, using First Bank Plc, Akure Branch, as a case study. The research adopts a quantitative approach, employing structured questionnaires to gather data from 80 employees, with a response rate of 93.75%. The findings reveal that compensation adequacy. fairness, transparency, and alignment with organizational objectives significantly influence employees' decisions to join and remain in the organization. Statistical analysis, including ANOVA, confirms a significant relationship between compensation policy and employee attraction and retention (F = 5.91 > F-critical = 2.73 at p < 0.05). Respondents expressed moderate satisfaction with the current compensation structure, noting gaps in transparency, market competitiveness, and fairness in promotions. Moreover, the study identifies actionable strategies such as performance-based rewards, transparent communication, training, flexible work arrangements, and inclusive decision-making as critical to enhancing satisfaction and reducing turnovet. The research underscores the importance of strategically aligned, dynamic, and well-communicated compensation systems in retaining top talent. The study concludes that effective compensation policies are not only essential for workforce stability but also for achieving long-term organizational success in the competitive banking sector.