Contract staff now make up about 44% of total banking employees
The trend is growing due to continual automation of many banking operations, and cost-saving measures by banks
Core banking graduates now face more competition for banking jobs
These days, every now and then there’s a job ad by an outsourcing company on behalf of a bank for some particular job positions. It appears to be a trend that won’t be going away anytime soon. For the most part, it appears to be a win-win for both parties.
The banks reduce their costs on maintaining long term and older staffs, and since it’s mainly young people targeted (also the ones making up the larger part of the unemployment chart), it also provides them with employment opportunities. Contracts staff are also easy to hire and fire.
The statistics show that the growth has been astronomical, more than doubling from 20,237 contract staff in 2017 across all Nigerian banks. National Bureau of Statistics (NBS)’s latest report shows that:
- There are a total of 46, 235 contract staff members as at Q1 2019
- There were 45,238 contract staff in Q4 2018 and 32,013 in the first quarter of 2018
- Total bank employees rose to 105, 017 a 0.33% rise compared to the immediate last quarter.
- This compares to 17% year on year employee hire for the banking sector. There was a 6.36% uptick in senior staff hires.
Something for the government to worry about?
The rising number of contract staff as compared to full time staff implies reducing or flat tax revenues from banks.