IMPACT OF PERFORMANCE MANAGEMENT ON EMPLOYEE RETENTION AND TURNOVER RATE IN THE BANKING SECTOR. A STUDY OF UNION BANK, LAGOS, NIGERIA.

Abstract The study examined the impact of performance management on employee retention and turnover rate in Union bank, Lagos State, Nigeria. The study employed survey research design, the population of the study consisted of 155 employees of Six Union Bank Lagos. Taro Yamane sample size determination formula was applied to get a sample of 112. Convenience sampling techniques was employed in the study. The researcher employed the use of a questionnaire to collect necessary data for the study. The study used employee retention and turnover rate as the dependent variable while management by objective method, merit rating method, 360 feedback method and behavioural anchored rating scale method as independent variable. To analyze the data, the study employed descriptive statistics and regression analysis method. Statistical Package for Social Science (SPSS) 24 was used to analyze the data. The study discovered that management by objective method and 360 degree feedback has significant effect on employees’ retention and turnover rate in Union Bank, Lagos State Nigeria. While merit rating method and behavioural anchored rating scale method has no significant effect on employees’ retention and turnover rate in Union Bank, Lagos State Nigeria. The study therefore concluded that performance management has significant effect on employees’ retention and turnover rate in Union Bank, Lagos State Nigeria. Since the employees of banks considered MBO to be highly relevant to bank management, the managers of the banks should apply MBO for improved performance of their employees