In a recent development, Sterling Bank has announced salary increments for its over 3,000 employees. The entry-level staff will now receive a net monthly salary of ₦528,000, a significant increase from the previous amount of around ₦320,000. This adjustment, averaging over 35% across various roles, follows a previous salary raise of 7% in January that did not meet employees’ expectations.
The decision to raise salaries comes amidst a trend of pay raises across the banking industry, with institutions like GTBank, Union Bank, and Wema Bank also implementing similar strategies due to the heightened competition for skilled professionals.
Notably, top fintech companies are actively recruiting senior banking staff, offering salaries that are almost double what banks provide. Moreover, a growing number of young professionals are seeking opportunities abroad, adding pressure on the local talent pool.
Sterling Bank, known for its banking services, is diversifying into fintech, asset financing, and electric vehicles. The organization recognizes the importance of retaining top talent to achieve its expansion goals.
Although Sterling Bank’s banking segment reported substantial earnings in 2023 and projected growth for 2024, it faces stiff competition from rivals like Wema Bank. Despite comparable asset and deposit sizes, Wema Bank generates nearly double the revenue.
The leadership at Sterling Bank is committed to retaining skilled professionals to steer the company’s growth across various sectors. The recent salary adjustments include increments for various roles, such as executive trainees, assistant banking officers, banking officers, senior banking officers, and assistant managers.
The heightened competition for talent in the banking sector underscores Sterling Bank’s strategic move to increase salaries as a response to market demands and a signal of its long-term aspirations. However, the effectiveness of this strategy in retaining top employees in a dynamic financial industry remains to be observed.