Effect of Human Resource Cost on Performance of Quoted Financial Firms in Nigeria

Abstract

Research Purpose: In the evolving financial sector, understanding the impact of human resource costs on firm performance is crucial. This study investigates how employee training, wages, and retirement benefits influence the profitability of quoted financial firms in Nigeria.

Methodology: Adopting an ex-post facto research design, the study utilised Ordinary Least Square regression to analyse data from 2012 to 2021.

Findings: The analysis revealed that employee training and development costs, wages and salaries, and retirement benefits costs have no significant effect on annual profits of quoted financial firms in Nigeria.

Conclusion: Human resources are essential for improved financial performance, although the costs of training, wages, and retirement benefits did not significantly impact profits in this study.

Recommendations: Banks should capitalise and report investments in human resources to enhance employee quality and productivity, thereby positively affecting profitability and share price value.