A report by Duplo, a Nigerian B2B payment automation startup, reveals that 56% of finance professionals in Nigeria are dissatisfied with their salaries, largely due to reduced spending power from high inflation and foreign exchange (FX) volatility. The study, titled Inside the Paycheck: Compensation Trends in Nigeria’s Finance Industry, surveyed 593 finance professionals across various sectors and job levels.
Key Findings from the Report
- Dissatisfaction with Compensation:
Only 3% of respondents expressed satisfaction with their earnings, a sharp drop from 14.8% in 2023. Dissatisfaction is most pronounced among professionals earning less than ₦250,000 monthly, many of whom feel uncomfortable negotiating higher pay. - Impact of Economic Conditions:
- 90.8% cited inflation and FX volatility as factors eroding their earnings.
- 37.7% reported no salary increase in the past year, even as employers in sectors like banking responded to macroeconomic conditions with pay adjustments.
- Income Disparities:
Only 7.2% of finance professionals earn over ₦1 million monthly, with this group demonstrating the most confidence in salary negotiations. The income gap in the sector remains significant, reflecting broader economic inequalities. - Talent Migration:
The challenging economic landscape is driving brain drain. 22.8% of respondents have relocated in the past five years, with 41.4% citing economic instability as the top challenge. Migration trends and shifting employee expectations also contribute to high talent turnover rates.
What Employees Want Beyond Salaries
The report highlights a shift in employee priorities. Finance professionals increasingly value:
- Career Growth Opportunities
- Work-Life Balance
- Transparent Pay Structures
“CFOs and finance leaders need to prioritise transparent and inflation-adjusted compensation packages to mitigate the current economic pressures and give themselves the best chance of retaining talent,” said Duplo CEO Yele Oyekola.
Upskilling Trends
Over 79% of finance professionals have pursued training in the last five years, focusing on areas like:
- Digital Transformation
- Fintech
- Cybersecurity
- Compliance
- Data Analytics
However, the persistence of salary dissatisfaction suggests that upskilling alone is insufficient to address frustrations when pay fails to match economic realities.
Solutions for Retention
To thrive in a competitive market and mitigate turnover, organisations must rethink their approach to compensation and benefits. Recommendations include:
- Inflation-Adjusted Pay: Ensure salaries reflect economic realities.
- Performance-Based Incentives: Reward top performers to boost morale and productivity.
- Flexible Work Arrangements: Adapt to evolving employee expectations.
- Professional Development: Offer tailored training programs to foster growth.
“Organisations can explore innovative benefits without overburdening their budgets, such as flexible work arrangements and performance-based incentives,” Oyekola added.
Conclusion
The dissatisfaction of finance professionals with their compensation underscores the urgent need for organisations to align pay structures with economic conditions. By addressing income disparities, offering growth opportunities, and investing in non-monetary benefits, companies can retain top talent and foster long-term stability in Nigeria’s finance sector.