IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON FINANCIAL PERFORMANCE OF SELECTED DEPOSIT MONEY BANKS IN NIGERIA

ABSTRACT This study examines the impact of human resources management (HRM) practices on the financial performance of selected deposit money banks in Nigeria. It aims to explore how strategic HRM practices, including recruitment, training, performance management, and employee engagement, influence key financial metrics such as profitability, return on assets (ROA), and return on equity (ROE). Utilizing a quantitative research design, data was collected from bank financial statements and HR departments through structured questionnaires. The analysis employed regression techniques to assess the relationship between HRM practices and financial outcomes. Findings indicate that effective HRM practices significantly enhance financial performance, highlighting the importance of human capital in achieving organizational success. The study concludes that banks should prioritize HRM strategies to foster a skilled and motivated workforce, ultimately leading to improved financial results. Recommendations for policy implementation and further research are also discussed. The study’s results reveal that banks with robust recruitment and training programs exhibit higher profitability and efficiency, indicating a strong link between employee competency and financial success. Additionally, the findings emphasize the role of performance management systems in aligning employee goals with organizational objectives, which further boosts financial performance. Employee engagement was also found to correlate positively with financial metrics, suggesting that a motivated workforce contributes to enhanced customer satisfaction and loyalty, ultimately impacting the bottom line. The research underscores the necessity for Nigerian banks to adopt comprehensive HRM practices that not only attract and retain talent but also foster a culture of continuous improvement and engagement. The implications of this study are significant for bank management, policymakers, and stakeholders seeking to leverage human resources as a strategic asset for financial growth. Future research could explore the long-term effects of specific HRM practices on financial performance across various banking sectors in Nigeria and beyond.