The impact of banking reform on employees in Nigeria commercial banking industry

The future of any economy depends on the activities of its industries and the banking industry serves as the engine for all economic activities. Also, the output of an industry depends on the input of its workforce which ensures the continued success of their organization. Therefore, it is important to keep the workforce motivated, satisfied and committed, not only to increase productivity and profitability of the organization but to also retain and attract talents. The Nigeria commercial banking industry cut down their operation expenses, as a result of the banking reform implemented by the Nigerian financial regulatory authority and this has resulted into a perceived breach of psychological contract. commitment was distributed to a stratified sample of the Nigeria commercial bank employees. The result obtained revealed that the perceived breach of psychological contract by the employers has caused reduction in the level of motivation, satisfaction and commitment of the employees. The analysis of result shows that employees perceive that the factors of job motivation, satisfaction and commitment have been reduced while there is increased insecurity of their jobs. The implication of this is a reduced level of employee’s productivity and the inability of the industry to retain or attract talents that are capable of improving the industry’s output and ensure long term performance