An Empirical Analysis of Digital Human Resource Management Adoption and Employee Retention in Selected Nigerian Banks

Abstract

This study investigated Digital Human Resource Management (DHRM) adoption and employee retention in the Nigerian banking sector. The study was grounded in the Social Exchange Theory (SET), assessing two critical digital dimensions; e-recruitment and HR analytics utilisation with two key retention indicators, job satisfaction and work-life balance. To guide the empirical investigation, two null hypotheses were formulated. The study adopted a quantitative survey design, with a target population of 186 employees across five (5) selected bank branches in Ota, Ogun State, and a calculated sample size of 127 to which structured questionnaire were administered. The results of descriptive and inferential statistical analyses, including mean scores, Pearson correlation, and simple linear regression testing, led to the rejection of the null hypotheses. Empirical findings revealed a strong, positive, and statistically significant relationship between e-recruitment and employee retention (r = 0.642, p < 0.001). This result indicates that improvements in e-recruitment practices were associated with higher levels of employee retention. The regression analysis further showed that HR analytics significantly predicted employee retention, with R = 0.589, R² = 0.347, and Adjusted R² = 0.342. Thus, HR analytics explained 34.7% of the variance in employee retention. The coefficient analysis showed that HR analytics had a positive and statistically significant effect on employee retention (B = 0.631, SE = 0.067, β = 0.589, t = 9.418, p < 0.001). The regression constant was also statistically significant (B = 2.712, t = 5.276, p < 0.001). These outcomes strongly validate the Social Exchange Theory, indicating that strategic organisational investments in technological HR infrastructure foster a profound perception of support among employees, cultivating long-term commitment and reciprocity. Consequently, the study recommends that financial institutions improve the transparency of recruitment algorithms, and establish clear ethical guidelines for people analytics to secure a sustainable competitive advantage in the contemporary war for talent.