Employees’ Perception of Banks’ Merger and Acquisition on Job Security in Nigeria

Abstract

Previous research on banking sector reforms have investigated economic-related issues such as stability, operational effectiveness, and recapitalization among others, with little attention devoted to issues associated with employees’ perception of banks’ Merger and Acquisition (M&A) and the insecurity of jobs. This study examines employees’ perception of M&A reform in relation to their feelings about job insecurity. The systematic sampling technique is utilized to select eight hundred and fifty-six employees from purposively selected commercial banks on who structured scales, measuring perceived job insecurity and M&A (reforms) outcomes were administered. Data are analysed descriptively and Pearson Correlation used to test the formulated hypothesis. Findings from the study show that employees reported mixed perceptions about the items on the scale. M&A engendered improved efficiency, training and leadership capability on the one hand, while it increased employees’ workload and working hours without a corresponding income value; and, alienate employees from leisure. The test of hypothesis indicates an inverse correlation between employees’ perception of M&A and employees feeling of job insecurity. The implications from the findings are discussed for theory and practice.