Nigerian banking giant Sterling Bank has taken a bold step to retain its top talent by increasing salaries for over 3,000 employees by up to 35%. The move comes amid a fierce battle for skilled professionals in the country's banking industry, driven by aggressive poaching from fintech companies and a brain drain of young professionals seeking opportunities abroad.

The salary review, which follows a 7% increase in January that left employees unimpressed, sees entry-level staff now earning ₦528,000 net monthly, up from around ₦320,000. Assistant Banking Officers (ABO) will take home around ₦850,000, while Banking Officers (BO) will see their salaries rise from ₦700,000 to ₦1,030,000. Senior Banking Officers (SBO) will now earn ₦1.1 million, and Assistant Managers (AM) will take home ₦1.3 million monthly.

The move is seen as a response to the growing talent war in Nigeria's banking industry, where top fintech companies are aggressively poaching senior banking staff with salary offers that are effectively double their bank salaries. At the same time, more young professionals are leaving Nigeria for opportunities abroad, further straining the talent pool.

Sterling Bank's leadership appears committed to holding onto talent that can help drive its expansion across multiple industries. The bank is aggressively expanding into fintech, asset financing, and even electric vehicles, and retaining top talent is critical to executing its vision. Sterling's banking business, the largest subsidiary in its group, reported ₦221 billion in gross earnings in 2023 and projects ₦337 billion for 2024.

However, the bank still lags behind competitors like Wema Bank, which, despite having similar asset and deposit sizes, generates nearly twice as much revenue. Sterling's latest salary review is both a response to the market and a signal of its long-term ambitions.

Whether the salary hike will be enough to retain its best employees in a rapidly evolving financial landscape remains to be seen. The move is likely to put pressure on other banks to follow suit, as the battle for talent in Nigeria's banking industry continues to intensify.

Sterling Bank did not immediately respond to a request for comments on the salary review. However, the move is seen as a significant step towards retaining top talent in a highly competitive industry.

The salary hike is also a testament to the growing importance of fintech in Nigeria's banking industry. As fintech companies continue to disrupt traditional banking models, banks like Sterling are recognizing the need to adapt and innovate to stay ahead of the curve. Retaining top talent is critical to driving this innovation and staying competitive in a rapidly changing landscape.

As the battle for talent in Nigeria's banking industry continues to heat up, it remains to be seen how other banks will respond to Sterling's move. One thing is certain, however: the war for talent is far from over, and banks will need to continue to innovate and adapt to stay ahead of the curve.