EVALUATING THE EFFECTIVENESS OF HUMAN RESOURCE MANAGEMENT STRATEGIES ON EMPLOYEE CONTENTMENT IN NIGERIA'S SERVICE SECTOR (BANKING INDUSTRY)

The aim of this study is to assess the effectiveness of human resource management (HRM) practices on employee contentment in the service sectors, focusing particularly on the Nigerian banking industry. A questionnaire was designed and distributed to 540 individuals working in service sectors, with a specific emphasis on the banking sector in Nigeria. Of these, 406 responses were collected. Statistical analyses including regression analysis using the Statistical Package for Social Science (SPSS) and one-way ANOVA were employed to test the research hypotheses. The findings revealed that overall, HRM practices, including HR planning, staffing, training & development, and performance appraisal, demonstrated high levels of effectiveness. However, the efficacy of remuneration was deemed to be moderate. Employee contentment levels were found to be moderate as well. Importantly, a strong positive correlation was observed between the effectiveness of HRM practices and employee contentment. The report suggests that banks should enhance their financial compensation policies to improve employee morale and contentment. Additionally, it recommends conducting comparative studies between commercial banks and Islamic banks to gain further insights.


INTRODUCTION
Due to extensive economic liberalization, Nigeria's service sectors play a pivotal role in transitioning to a free-market economy, making them fundamental to the country's economic framework Okafor et al. (2022).The service industry, particularly banking, offers significant growth and diversification prospects, accounting for 44.6% of market capitalization and 50.75% of GDP in 2010 Fatogun Evaluating the Effectiveness of Human Resource Management Strategies on Employee Contentment in Nigeria's Service Sector (Banking Industry) International Journal of Research -GRANTHAALAYAH 78 (2022).Recognizing its importance, the Nigerian government aims to enhance the competitive edge of the service sector and attract foreign investment Okafor et al. (2022).
The banking sector, comprising 21 national and international commercial banks by 2022, plays a crucial role in Nigeria's economic recovery and future Okafor et al. (2022).The industry has evolved over the past decade to enhance reliability and competitiveness Okafor et al. (2022), Fatogun (2022).Various financial institutions, including microfinance banks, contribute significantly to SME success and national economic growth Fatogun (2022).
In contemporary business, organizations strive to improve productivity and job satisfaction through innovative work practices.Human Resource Management (HRM) is instrumental in enhancing an organization's competitive advantage and customer satisfaction Anshari & Hamdan (2022).HRM aligns an organization's strategic needs with its human capital, emphasizing the importance of a skilled workforce Al-Daibat & Irtaimeh (2012).
Despite economic challenges, Nigeria's banking industry remains vital for local development initiatives due to reduced international financial support Okafor et al. (2022).However, limited research exists on the impact of HRM practices on employee satisfaction in service firms Madanat & Khasawneh (2018), Katou & Budhwar (2012).This study aims to fill this gap by examining the efficacy of HRM strategies and their impact on employee satisfaction in the banking industry.
HRM's role in enhancing performance, developing employee skills, and fostering organizational growth underscores its importance in modern management Elarabi & Johari (2014).Employee satisfaction remains a priority for businesses, making it essential to investigate the influence of HRM practices on satisfaction levels.This study seeks to evaluate the effectiveness of HRM strategies, including HR planning, staffing, remuneration, training, development, and performance appraisal, on employee satisfaction within Nigeria's banking sector.
HR planning, as defined by Yadav & Dabhade (2014), involves strategic management to forecast an organization's future personnel needs and compare them with the current workforce.Noe et al. (2010) emphasizes the importance of assessing supply and demand to avoid labor shortages or surpluses.
Recruitment and selection strategies, according to Werner & DeSimone (2009), aim to identify qualified candidates for present and future roles.Mondy & Mondy (2014) define recruitment as the process of enticing applicants to apply for positions promptly and adequately.Durai (2010) highlights the significance of attracting competent prospects to ensure an effective recruitment campaign.
Training and development programs are essential for enhancing employee capabilities, job performance, productivity, satisfaction, and reducing expenses.Mondy & Mondy (2014) stress that ongoing training initiatives improve organizational performance by equipping staff with necessary skills and knowledge.
Compensation, including benefits, is vital for attracting and retaining talent.It serves as recognition for employees' efforts and contributions to company success Mondy & Mondy (2014), Noe et al. (2010), Dessler (2011), Osemeke (2012), Osibanjo et al. (2012).Gilmore & Williams (2009) state that compensation influences employee behavior and performance, while Irshad (2008) argues that competitive pay is necessary to recruit and retain top talent.
Appraisal methods such as ranking, graphic rating, critical incident, narrative essays, management by objectives, and human resource accounting are highlighted by Aggarwal & Thakur (2013).

EFFECTIVENESS OF HUMAN RESOURCE MANAGEMENTS
The efficient management of HR activities is crucial for enhancing both the department's performance and the overall performance of the company, necessitating cost reduction while maintaining high-quality service for internal and external clients.Bai (2013) emphasizes aligning HR activities with the firm's goals and improving those that fall short.Agarwala (2003) advocates for transitioning HRM practices to meet organizational demands and link them with operational requirements.Jain & Gupta (2012) identify markers of successful HRM outcomes as employee happiness, motivation, trust, commitment, and loyalty, emphasizing the importance of fostering a positive work environment.Al-Hyasat (2006) examined the efficacy of HRMS (human resource planning, hiring, performance evaluation, and training) and their impact on business performance, finding a positive correlation.Al-Sahryra & Al-Graeb (2010) explored the relationship between HRM practices and organizational creativity in Jordanian telecommunications, noting a significant impact on innovation.Moideenkutty et al. (2011) found a positive association between high-involvement HRM practices and organizational success in Oman.Abutayeh & Al-Qatawneh (2012) observed that all HR practices increase job involvement.Hong et al. (2012) investigated HRM practices' impact on employee retention choices in a Malaysian university, highlighting the importance of training, compensation, and appraisal.Atteya (2012) examined the effect of HRM practices on job performance in Egypt's petroleum industry, revealing a significant positive impact.Loo & Beh (2013) studied the link between strategic HRM practices and organizational performance in Malaysian insurance companies, identifying performance reviews, internal communication, and SHRM alignment as key indicators.Al-Bahussin & El-Garaihy (2013) found that HRM techniques positively influence organizational culture, knowledge management, innovation, and performance in Saudi Arabian businesses.In this study the following hypotheses were developed to guide the study. H1: There is a medium level of employees' satisfaction in service industry.
Evaluating the Effectiveness of Human Resource Management Strategies on Employee Contentment in Nigeria's Service Sector (Banking Industry) International Journal of Research -GRANTHAALAYAH 80 H2: There is no significant impact of HRM practices on the level of employees' satisfaction in service industry.

METHODOLOGY
The study employed a descriptive-analytical approach to assess the impact of HRM practices on employee satisfaction in the Nigerian banking sector.A structured questionnaire was administered to a standardized sample comprising managers, division heads, and staff members from various banking institutions.The study encompassed 21 commercial banks, 860 microfinance institutions, 5 discount merchants, 64 finance firms, and 5 development finance institutions.Participants were selected from corporate offices and branch locations using a systematic random sampling method.Out of 525 distributed questionnaires, 406 were returned and utilized for analysis.
Primary data was collected through the questionnaire, supplemented by information from secondary sources such as reports, books, papers, and journals related to the Nigerian banking industry.The questionnaire comprised three sections: respondent characteristics, HRM practices (measured through 39 Likerttype questions), and employee satisfaction (assessed through six questions).Pearson correlation coefficients were calculated for each item and dimension, all indicating a strong positive relationship.Internal consistency was assessed using Cronbach's alpha, with reliability coefficients ranging from 0.894 to 0.954 for HRM efficacy and 0.879 for employee satisfaction, exceeding the standard threshold of 0.7.The overall reliability of the questionnaire was determined to be 0.974.
Data analysis involved various statistical techniques such as one-way ANOVA, regression analysis, descriptive statistics (mean, standard deviation, T-test), and Cronbach's alpha.Additionally, the study employed a measuring scale where scores between 1 and 2.33 denoted low levels, 2.34 to 3.67 signified medium levels, and 3.68 to 5 indicated high levels of satisfaction or efficacy.

RESEARCH RESULTS
Hypothesis 1: There is a medium level of efficacy of HRM practices in the service sector (banking industry).Table 2 illustrates a notable level of achievement across all aspects of HRM.Regarding compensation, responses ranged from 3.4470 to a high of 3.8620 for training and development.Performance appraisal garnered a mean response of 3.7520, followed by staffing (3.7100), HR planning (3.7288), and overall HRM effectiveness (3.6998).These results signify a generally high level of HRM effectiveness in the Nigerian banking sector, albeit with compensation showing a medium level.
The findings suggest a commitment from Nigerian banking management to enhance HR processes through the adoption of modern, quality-focused methodologies and advanced technology.Such endeavors aim to elevate strategic contributions and service delivery, aligning with strategic objectives.However, there's a need for HR managers to prioritize enhancing compensation structures within the industry.
Researchers attribute the medium compensation level to Nigeria's economic challenges stemming from security issues and corruption.These factors have strained resource availability, hindered foreign investment, inflated inflation rates, constrained private sector growth, and intensified competition.Consequently, bank management may prioritize revenue generation and cost reduction to mitigate these challenges, potentially impacting compensation efficacy.
These observations align with Al-Daibat & Irtaimeh (2012) and Madanat & Khasawneh (2018) assertions regarding the widespread application of HRM strategies in the banking sector.
1) Effectiveness of HR Planning Table 2 displays significant accomplishments across various HRM domains in the Nigerian banking sector.The responses indicate a range from 3.4470 to 3.8620 for training and development, with performance appraisal scoring a mean response of 3.7520, followed by staffing (3.7100), HR planning (3.7288), and overall HRM effectiveness (3.6998).This suggests a predominantly high level of HRM effectiveness, although compensation registers at a medium level.
The findings reflect a commitment from Nigerian banking management to enhance HR processes by embracing modern, quality-centric approaches and advanced technology.These efforts aim to bolster strategic contributions and service delivery in alignment with organizational goals.Nonetheless, there's a Researchers attribute the medium level of compensation to Nigeria's economic challenges, particularly security issues and corruption.These factors have strained resource availability, impeded foreign investment, exacerbated inflation rates, stunted private sector growth, and heightened competition.Consequently, bank management may prioritize revenue generation and cost-cutting measures to address these challenges, potentially impacting compensation effectiveness.
These findings resonate with Al-Daibat & Irtaimeh (2012) and Madanat & Khasawneh (2018) assertions concerning the widespread adoption of HRM strategies in the banking industry.Except for questions 11, 14, and 16, which are at a medium level, all staffingrelated statements demonstrate a high level of effectiveness, individually and collectively, as indicated in Table 4.The standard deviations range from 0.76804 to 0.94951, with mean scores spanning from 3.5764 to 3.8985.Among respondents, question 8, regarding sourcing from multiple channels, scored the highest with a mean of 3.8985, while question 14, concerning selecting the best candidate, scored the lowest with a mean of 3.5764.However, it's noteworthy that there's only been moderate adoption of contemporary recruitment tactics.The high staffing effectiveness is attributed to management's focus on sourcing qualified individuals, diversifying recruitment sources, and ensuring appropriate placement to meet quality standards.Table 5 illustrates a medium level of effectiveness for all statements related to compensation, as well as for overall compensation effectiveness, with mean scores ranging from 3.3267 to 3.6634 and standard deviations ranging from 0.82789 to 1.06215.The highest level of response, with a mean of 3.6634, was recorded for question 17, which pertains to the fairness of the incentive system.Conversely, the lowest level, with a mean of 3.3267, was observed for another question.These findings may be attributed to Jordan's challenging economic conditions, which heighten management's concerns regarding maximizing revenue while minimizing costs.This could involve considering drastic measures such as workforce reductions or freezing salary increases.Consequently, there's a need for bank management to prioritize enhancing employee compensation effectiveness.6 shows individual means and standard deviations for all statements pertaining to the effectiveness of training and development.Table 6 illustrates a high level of efficacy for all statements related to the training and development component, both individually and collectively.The mean scores range from 3.7951 to 3.9138, with standard deviations between 0.85069 and 0.77934.Notably, question 26, which assesses the extent to which training enhances service quality, achieved the highest level with a mean of 3.9138, while question 28, examining the impact of training on employee attitudes, obtained a mean of 3.7951.These findings reflect the pressure on bank management to enhance competitiveness, innovation, and efficiency amidst dynamic business demands and environments.Recognizing their employees as their greatest competitive asset, organizations are increasingly investing in their development.

3) Effectiveness of Compensation
Management's belief in continual improvement as essential for banking success and a key indicator of HRM performance further contributes to this emphasis on training and development.Consequently, banks are prioritizing the enhancement of professional and performance standards among their workforce to elevate service quality for clients.Table 7 indicates a high level of efficacy for performance appraisal statements, both individually and collectively.The mean scores range from 3.7104 to 3.8564, with standard deviations between 0.74922 and 0.88820.Question 38, which explores how performance reviews contribute to the bank's strategic goals, received the highest score of 3.8564, while question 35, addressing the identification of workers' strengths and weaknesses, obtained the lowest score of 3.7104.These findings suggest that bank management places significant emphasis on performance appraisal as a means to align with strategic business goals and enhance work quality.Additionally, amidst mounting commercial pressures, banks are increasingly prioritizing effectiveness, efficiency, and performance in business strategy to remain competitive.Consequently, efforts are being made to elevate performance standards and enhance company performance, including the development of performance appraisal systems and methodologies to improve individual and group performance.

5) Effectiveness of Performance Appraisal
In contrast, employee satisfaction comments, except for question 44 concerning satisfaction with training programs, reached a medium level, both individually and collectively, as depicted in Table 8.The mean scores range from 3.3645 to 3.7951, with standard deviations between 0.79290 and 0.99589.Question 42, regarding employee happiness with bank remuneration schemes, received the lowest score of 3.3645, while question 44, concerning satisfaction with training and development programs, received the highest score of 3.8564.Despite this, employee satisfaction with the efficiency of human resources procedures remained at a moderate level.

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Hypothesis 2 asserts that there is no significant effectiveness of HRM practices on the level of employees' satisfaction in the service sector, particularly in the banking industry.To test this hypothesis, a simple, multiple, and stepwise linear regression analysis is conducted to examine the influence of HRM practices' effectiveness on employees' satisfaction levels.The regression results are presented in Table 9.The results of the simple linear regression analysis, depicted in Table 9, reveal a significant impact (p < 0.05) of overall HRM practices' effectiveness on employee satisfaction within the banking industry.The beta coefficient of 0.921 (t = 47.666)indicates that a one standardized unit change in HRM practices leads to a corresponding change of 0.921 standardized units in employee satisfaction.Moreover, the coefficient of determination (R2) of 0.849 signifies that 84.9% of the variation in employee satisfaction can be explained by the effectiveness of HRM practices.Consequently, the null hypothesis is rejected, affirming the alternative hypothesis: There is a significant impact (α ≤ 0.05) of the effectiveness of HRM practices on employees' satisfaction levels.
These findings underscore the substantial influence of HRM practices on employee satisfaction, emphasizing the pivotal role such practices play in leveraging human resources within the banking sector.Hence, it is imperative for bank management to enhance their HRM practices to effectively contribute to employees' satisfaction.These findings align with previous international studies, such as the research conducted by Hong et al. (2012), which demonstrated the impact of HRM practices on employee retention decisions and loyalty.
To further investigate the impact of HRM dimensions on employee satisfaction, a multiple and stepwise linear regression analysis was conducted, with the results presented in Table 10 and Table 11.As depicted in Table 10, the effectiveness of overall HRM procedures significantly impacts employee satisfaction within Nigeria's banking sector (α ≤ Hamza Aliyu Galadanchi, and Asiya Abdul Saulawa International Journal of Research -GRANTHAALAYAH 87 0.05).Notably, salary emerges as the most influential factor, followed by HR planning, performance appraisal, staffing, and training & development.Consequently, the null hypothesis is rejected, affirming the alternative hypothesis: "There is a significant impact of overall HRM practices on the level of employee satisfaction in Nigeria's banking sector." Table 11 delves into the impact of HRM practices on employee satisfaction and their respective positions in the regression equation.The findings reveal that compensation holds the foremost position, explaining 76.5% of the variation in employee satisfaction with a correlation coefficient of 0.875.HR planning follows, contributing to 84.2% of the variation alongside compensation (individually, 7.7%), with a correlation coefficient of 0.917.Performance appraisal ranks third, accounting for 86.9% of the variation alongside compensation and HR planning (individually, 2.7%), with a correlation coefficient of 0.932.Staffing occupies the fourth position, explaining 87.4% of the variation alongside compensation, HR planning, and performance appraisal (individually, 0.5%), with a correlation coefficient of 0.935.
Responding to these findings, researchers emphasize the direct and advantageous impact of pay on workers' performance and job satisfaction, underscoring the need for the banking sector to prioritize employee inclusion in decision-making and attend closely to their needs.It is highlighted that compensation effectiveness emerges as the most significant HRM practice affecting employee satisfaction, emphasizing the importance of remuneration and planning efficiency.By prioritizing these aspects, banks can foster greater employee dedication and job satisfaction.Additionally, senior management is encouraged to promote employee participation in goal-setting and enhance empowerment, factors that contribute to heightened employee commitment and job satisfaction.

CONCLUSION AND RECOMMENDATIONS
The findings revealed that the collective implementation of HRM strategies proved to be more effective.Notably, HR planning, staffing, training and development, and performance appraisal demonstrated high levels of efficacy.However, due to the medium degree of compensation effectiveness, respondents indicated a moderate level of satisfaction among employees.Both individually and collectively, employee satisfaction ratings reached a medium level, with the bank's remuneration system garnering the lowest satisfaction score, averaging at 3.3645.The study identified that 87.5% of the variance in employees' satisfaction could be explained by the strong impact of HRM practices.
Significantly, compensation emerged as the most effective HRM strategy, explaining 76.5% of the variation in employee satisfaction.In light of these findings, bank management is urged to take decisive measures to enhance financial compensation procedures in alignment with the strategic plans and actions of the banks.HR managers are advised to prioritize improving the pay-compensation structure to ensure fair and equitable rewards for employees.Furthermore, it is recommended that future studies expand their scope to encompass HRM practices in other African countries.These studies should aim to include a larger sample size and conduct research across diverse geographical locations to enhance understanding of HRM practices' broader applicability in various sectors and cultural contexts, as proposed by Cherif (2020).

LIMITATIONS AND IMPLICATION OF THE STUDY
The study suggests that a significant portion of respondents may hesitate to provide honest responses regarding organizational satisfaction and pay.To address this issue, future research should consider conducting comparative studies across different sectors or economies to elucidate variations in HRM practices.While the study focused solely on the Nigerian banking sector, its insights can be invaluable for bank CEOs and management seeking to optimize their HRM procedures.
The study underscores the critical importance of compensation, a fundamental aspect of HRM, and its impact on employee satisfaction.However, it also highlights the need for bank management to consider both financial and non-financial aspects of compensation.Given the substantial influence of financial remuneration on employee satisfaction, the Nigerian banking sector should contemplate revamping and reengineering their pay systems.Moreover, expanding these considerations to encompass other rapidly growing industries such as IT and communication is essential.This holistic approach ensures that the banking sector remains competitive in attracting and retaining top talent.
Evaluating the Effectiveness of Human Resource Management Strategies on Employee Contentment in Nigeria's Service Sector (Banking Industry)International Journal of Research -GRANTHAALAYAH 82 pressing need for HR managers to prioritize the improvement of compensation structures within the sector.
Evaluating the Effectiveness of Human Resource Management Strategies on Employee Contentment in Nigeria's Service Sector (Banking Industry) International Journal of Research -GRANTHAALAYAH 84 4) Effectiveness of Training and Development Table

Table 8 Table 8 Means, Standard Deviations and Level of Employees' Satisfaction
Evaluating the Effectiveness of Human Resource Management Strategies on Employee Contentment in Nigeria's Service Sector (Banking Industry) International Journal of Research -GRANTHAALAYAH

Table 11 Stepwise Multiple Regression for the Impact of HRM Dimensions on Satisfaction Employees' Satisfaction
Evaluating the Effectiveness of Human Resource Management Strategies on Employee Contentment in Nigeria's Service Sector (Banking Industry) International Journal of Research -GRANTHAALAYAH 88