







































 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Benefits and Employee Retention in Tier-

One Deposit Money Banks in South-South, Nigeria 

 

Dr. Iwo Sokari Samuel-Ikiroma & Prof. S.A. Jaja 



European Journal of Human Resource    

ISSN 2520-4697 (Online)        

Vol.7, Issue 2, pp 45 - 59, 2023                                                                www.ajpojournals.org 
                                                                                                                                 

45 

 

Deferred Benefits and Employee Retention in Tier-One Deposit 

Money Banks in South-South, Nigeria 

 

Dr. Iwo Sokari Samuel-Ikiroma1* & Prof. S.A. Jaja2 
1Department of Management, Faculty of Management Sciences, Rivers State University, 

Nkpolu-Oroworukwo, Port Harcourt, Nigeria 
2Department of Management, Faculty of Management Sciences, Rivers State University, 

Nkpolu-Oroworukwo, Port Harcourt, Nigeria 

 
Article History 

Submitted 10.11.2023 Revised Version Received 23.11.2023 Accepted 27.11.2023 

 

Abstract 

Purpose: This study examined the 

relationship between deferred benefits and 

employee retention in tier-one deposit 

money banks in South-South, Nigeria. The 

study adopted the cross-sectional research 

survey design.  

Materials and Methods: Primary data was 

generated through structured questionnaire. 

The population of this study was 135 

employees in the regional offices of 5 tier-

one deposit money banks in located in Port 

Harcourt from where all the activities of the 

banks covering Rivers, Delta, Edo, Bayelsa, 

Akwa Ibom and Cross Rivers are 

coordinated. The sample size of 101 was 

determined using Taro Yamane sample size 

determination formula. The reliability of 

the instrument was achieved by the use of 

the Cronbach Alpha coefficient with all the 

items scoring above 0.70. The hypotheses 

were tested using the Spearman’s Rank 

Order Correlation Coefficient. The tests 

were carried out at a 0.05 significance level.  

Findings: The findings revealed that there 

is a significant relationship between 

deferred benefits and employee retention in 

tier-one deposit money banks in South-

South, Nigeria. Thus, the study conclude 

deferred benefits positively enhances 

employee retention in tier-one deposit 

money banks in South-South, Nigeria.  

Implications to Theory, Practice and 

Policy: Therefore, it was recommended 

that deposit money banks should develop a 

comprehensive deferred benefits package 

that includes various components such as 

retirement plans, pension schemes, stock 

options, profit-sharing, and long-term 

incentives. The package should be tailored 

to meet the needs and preferences of 

employees while aligning with the bank's 

financial capabilities. 

Keyword: Deferred Benefits, Employee 

Retention, Job Stability, Promotion 

Opportunities 

 

 

 

 

 

 

 

 

https://doi.org/10.47672/ejh.1665


European Journal of Human Resource    

ISSN 2520-4697 (Online)        

Vol.7, Issue 2, pp 45 - 59, 2023                                                                www.ajpojournals.org 
                                                                                                                                 

46 

 

1.0 INTRODUCTION 

In organizations today, employees are regarded as the most important assets to the organization. 

According to Chandra (2019), engaged employees are seen as the strategic assets of the 

organization and the ability of the organization to engage employees will lead to retention of 

employees. Thus, organizations strive to retain skilled employees. Witemeyer (2013), and 

Theuri (2017) refer to employee engagement as the attitude of an employee towards work in 

an organization, which contains an approach of vigor, devotion, absorption, enthusiasm, and 

interest. A committed workforce is vital because they help the organization reap benefits and 

realize its goals and objectives. Such benefits and actualized goals are increased efficiency, 

higher earnings per employee, higher performance (Okoro & Ihenyen, 2020) and productivity, 

lower absenteeism, higher level of customer satisfaction, and lower turnover rates (Saks, 2006; 

Michael & Stephen 2014; and Ashraf & Siddiqui, 2020). In a practical sense, it is not who the 

organisation hires that matters but who the organization retains. thus, the real issue for 

management is the frantic effort towards identifying and retaining top performing employees 

(Kennedy & Daim, 2010). 

Employee retention is a major concern for organizations, as high employee turnover can be 

costly and disruptive. Retaining employees is very important to the organization as it affects 

the organization positively, via high employee morale and high employee productivity 

(Mitchell et al., 2010); more so, employee retention has become a vital issue of concern for 

organizations that seeks to improve their performance. Mandhanya (2015) opined that 

employee retention has become among the most vital factor for the long-term success of 

organizations that want to remain competitive in their industry. One of the key factors that 

influence employee retention is indirect compensation management. By understanding the 

value of deferred benefits, organizations can create a more attractive work environment and 

retain their talented employees.  

Deferred benefits refer to the benefits that an employee is entitled to receive after the 

termination of their employment or retirement. According to Baram (1998), deferred benefits 

are a form of compensation that is earned by an employee during their employment period but 

is not payable until a later date. These benefits are often established by an employer and are 

intended to provide financial security to the employee after they have retired or left the 

company. Common examples of deferred benefits include pension plans, retirement plans, and 

stock option plans. The purpose of deferred benefits is to provide employees with a secure and 

predictable source of income in their retirement years. These benefits are also designed to 

incentivize employees to remain with the company for a long period of time, as they will be 

able to accumulate more benefits the longer they stay. 

According to Perrin. (2005), leading organizations, need to understand the current, and future, 

workforce composition and offer the right package of rewards and other programs to attract, 

retain and engage the people an organization needs. The opportunity also exists to align 

employee and customer demographics and to become a chosen employer for the multiple 

generations represented in today’s workforce. However, whether any organization will be 

successful in retaining its baby boomer talent will depend on offering rewards that effectively 

meet the needs of older workers. Research shows these include competitive health-care and 

retirement benefits as well as important intangibles like work schedule and work-location 

flexibility and respect for employee contributions. Health-care and retirement benefits top the 

list of what 50-and-older workers at large companies look for in deciding whether to stay with 

an organization, although intangibles like work-life balance, the opportunity to work with high-

caliber colleagues and on-the-job recognition also play significant roles. The purpose of this 



European Journal of Human Resource    

ISSN 2520-4697 (Online)        

Vol.7, Issue 2, pp 45 - 59, 2023                                                                www.ajpojournals.org 
                                                                                                                                 

47 

 

paper therefore was to examine the relationship between deferred benefits and employee 

retention in tier-one Deposit Money Banks in South-South, Nigeria. 

 

 

 

 

 

 

 

 

 

 

Figure 1: Conceptual Model for the Relationship Between Deferred Benefits and Employee 

Retention 

Source: Desk Research (2023) 

2.0 LITERATURE REVIEW 

Theoretical Foundation 

Resource-Based View (RBV) Theory 

According to Barney (2011), resource-based view theory is the approach that best describes 

how organisations can gain competitive advantage and increase their performance. According 

to the RBV theory, organizational resources are the most important determinants of the 

competitiveness and performance of the organization. The theory suggests that organisations 

need to integrate their resources which are the key capabilities that they are assured of having 

for the sake of their internal operations and existence (Shivaraj & Vijayakumara, 2015).  

The Resource Based View (RBV) as a basis for the competitive advantage of a firm lies 

primarily in the application of a bundle of valuable tangible or intangible resources at the firm's 

disposal (Wernerfelt, 1984; Rumelt, 1984; Penrose, 1959). To transform a short- run 

competitive advantage into a sustained competitive advantage requires that these resources are 

heterogeneous in nature and not perfectly mobile (Peteraf, 1993). Effectively, this translates 

into valuable resources that are neither perfectly imitable nor substitutable without great effort 

(Barney, 1991). If these conditions hold, the bundle of resources can sustain the firm's above 

average returns. 

Principally, Resource-based view theory focuses on the need for organizations to look within 

or inwards, at their available resources and capabilities, in formulating strategies to gain 

advantage over its competitors and threats to business survival (Wojcik, 2015). Organizations 

can achieve superior performance and gain sustained competitive advantage over its 

competitors through strategic resources it possesses, developed and controlled and which must 

meet the “VRIN” criteria; Valuable, Rare, Inimitability and Non-Substitutability (Barney, 2014 

cited in Liedke, Irigaray & Neves, 2019). Valuable refers to resources that could be used to 

implement new strategies to improve an organization’s effectiveness and efficiency, because 

they can be used to reduce cost or increase revenue when compared to the competitors. Rare 

Employee Retention 
Deferred Benefits 

   

   

   

   

   

  

Job Stability 

Promotion Opportunities 



European Journal of Human Resource    

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refers to resources that are not freely available to all organizations, since they are 

heterogeneously distributed. Inimitability refers to resources that are not perfectly mobile 

because they cannot be easily acquired. Non-substitutability refers to the irreplaceability of a 

resource. So, the Resource-Based View theory assumes that resources are heterogeneous and 

imperfectly mobile across all firms (Miller, 2003).  Barney (1991, cited in Madhani, 2010) 

defined sustained competitive advantage as a non-duplicable advantage; he went further to 

describe the three distinct resources that can provide organizations with sustained competitive 

advantage as: Physical resources (physical, technological, plant and equipment), 

Organizational resources (formal structure) and Human resources (training, experience and 

insights).  

The Resource-Based View (RBV) theory is highly relevant in a study on deferred benefits and 

employee retention. The RBV theory focuses on the unique resources and capabilities that 

organizations possess and how they contribute to their competitive advantage. The RBV theory 

provides a relevant framework for studying the relationship between deferred benefits and 

employee retention. It underscores the importance of understanding how valuable resources, 

including human capital, can be leveraged to gain a competitive advantage, and how unique 

resource configurations and practices can contribute to sustained organizational performance. 

Deferred Benefits 

Deferred benefits refer to the benefits that an employee is entitled to receive after their 

retirement from their employer, or in some cases, after leaving their employment. Deferred 

benefits are typically retirement benefits that are accrued by employees during their service to 

the employer that are not payable until they reach a certain age or meet other requirements. In 

some cases, the employer may also offer deferred compensation plans, which allow the 

employee to defer a portion of their salary until a later date, typically after retirement. Deferred 

benefits are an essential component of employee compensation packages and play a critical 

role in attracting and retaining top talent. According to Baram, "deferred benefits are a 

significant factor in motivating employees to remain with their employer" (Baram, 1998). As 

such, it is essential for employers to offer competitive deferred benefits packages to attract and 

retain top talent. However, it is important for employers to ensure that they have the financial 

resources to meet their deferred benefits obligations, as failing to do so can result in significant 

financial and legal consequences. In conclusion, deferred benefits play a crucial role in 

employee compensation and retention, and employers must ensure that they can fulfil their 

obligations to their employees to avoid any adverse consequences.  

According to Wang et al. (2009), deferred benefits can be divided into two main categories: 

defined benefit plans and defined contribution plans. Defined benefit plans are those in which 

an employer promises to pay a certain amount to an employee upon retirement, based on a 

predetermined formula that takes into account factors such as the employee's salary and length 

of service. This type of plan places the financial risk and responsibility on the employer, as 

they are responsible for ensuring that the promised benefits are paid out. On the other hand, 

defined contribution plans place the financial risk and responsibility on the employee, as they 

are responsible for contributing to the plan and making investment decisions. The employer's 

contribution to the plan is usually a set amount or a percentage of the employee's salary. The 

benefits received upon retirement depend on factors such as the amount contributed and the 

performance of the investments made. It is important for employees to understand the 

differences between these two types of deferred benefits and to carefully consider their options 

when choosing a retirement plan. Overall, the choice between a defined benefit plan and a 



European Journal of Human Resource    

ISSN 2520-4697 (Online)        

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49 

 

defined contribution plan depends on a variety of factors, including an employee's individual 

financial situation, risk tolerance, and retirement goals. 

Some organizations offer retirement related benefits like pension which is the deferred income 

collected during the working period, and the contribution is returned to the employee after 

retirement (Fuchs, Kronenberg, Kühne, & Rieder, 2016). Employee remuneration is not just 

about wages and salaries it is also concerned with long term benefits such as pension (Vries, 

Albrecht & Broek, 2016). These long-term benefits are usually known as employee security 

benefits and sometimes as perks. Retirement plans in addition to being tax-advantaged means 

of accumulating retirement income, it also can enhance productivity. Pensions strongly 

influence workers behaviour, encouraging older workers to retire on a timely basis and giving 

younger workers a compelling reason to continue working for their employer. 

Ongaki and Otundon (2015) state that while retirement policies constitute a "push" factor for 

non-employment of old-aged workers, pension systems and policies are a "pull" factor. 

According to the same author, pension benefits tend to pull old-aged workers out of 

employment even before normal retirement age. However, the availability of retirement funds 

to older workers contributes to the "pull factor" of retirement. According to Ojwala (2016), 

employee benefits should include pension schemes for employee financial security after 

employment. He adds that attractive pension schemes attract and retain high-quality 18 workers 

since they maintain competitive levels of total remuneration. 

Employee Retention 

Employee retention refer to the means, plan or set of decision-making behaviour put in place 

by organizations to retain their competent workforce for performance (Gberevbie, 2008). 

Researchers have found that employees are more likely to remain and work for the successful 

achievement of organizational goals when appropriate employee retention strategies are 

adopted and implemented by organizations (Chaminade, 2009; Willis, 2010). According to 

Madiha (2009) a worker’s view of the organization is strongly influenced by their relationship 

with their supervisor. By having support, workers are less likely to leave an organization and 

be more engaged by having good relationship and open communication with the supervisor. 

Supervisors interact as a link to practice applications among stated goals and expectations. By 

harmonizing the competing demands, they support in managing both inside and outside the 

work environment. If the relationship is not pleasant, then employees will seek other 

opportunity for new employment and vice versa. 

Employee retention refers to policies and practices that companies use in preventing valuable 

employees from leaving their jobs (Ramlall, 2003). Employee retention involves taking 

measures to encourage employees to remain in the organization for the maximum period of 

time (Griffeth & Hom, 2001). Leign, (2002) also defines retention as keeping those employees 

that keep you in business.  

Employee retention examines the number of employees who serve or work in the organization 

and are encouraged to remain working over a longer duration, (Yao, Qiu, & Wei, 2019). 

Organizations are increasingly looking for the best employees and ensure that they are retained 

within the firm; an effective employee ought to be retained to reduce turnover of the employee, 

increase loyalty and commitment of the employee. Employee retention has significantly 

affected the organization's competitiveness and performance, (Noe & Kodwani, 2018). 

An effective employee retention strategy can be a competitive advantage and the key to success 

for an organization. However, the crux of the matter is still not investigated enough in order to 

understand the subject completely. According to James and Mathew (2012:80), “employee 



European Journal of Human Resource    

ISSN 2520-4697 (Online)        

Vol.7, Issue 2, pp 45 - 59, 2023                                                                www.ajpojournals.org 
                                                                                                                                 

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retention is a process in which the employees are encouraged to remain with the organization 

for the maximum period of time”. However, employee retention is not only beneficial for the 

organization, but as well for the employee itself. Organizations are recommended to retain their 

best employees, the talents, in order to perform well (James & Mathew, 2012). 

Measures of Employee Performance 

Job Stability 

Job stability refers to the perceived or actual continuity and security of employment within an 

organization (Origo & Pagani, 2009). It refers to the assurance that employees have regarding 

the longevity and sustainability of their job within the organization. Job stability is relevant in 

the context of employee retention because it influences employees' commitment, job 

satisfaction, and overall well-being. Job stability has always been a crucial aspect of an 

individual's economic well-being. In today's uncertain economy, it has become even more 

important. As noted by Friedman (1995), job stability is essential for job security, which is 

necessary for an individual's financial stability. With the rise of the gig economy and the 

increasing prevalence of short-term and contract-based employment, job stability has become 

increasingly rare. This instability can lead to financial stress and insecurity for workers, leading 

to negative impacts on their mental health and overall well-being. Moreover, a lack of job 

stability can also lead to reduced productivity and innovation as workers may be less likely to 

invest in their skills and knowledge if they do not feel secure in their employment. Therefore, 

job stability is not only important for individual workers but also for the overall health of the 

economy. Policymakers must recognize the importance of job stability and work to create 

policies that promote stable, long-term employment opportunities for workers. 

Job stability and security are important factors for job satisfaction and employee retention. 

According to Stewart (2002), several factors can affect job stability and security. One of the 

most significant factors is the economic condition of the company. Firms that are struggling 

financially may be forced to cut costs, which may result in downsizing or layoffs. Another 

important factor is the industry in which the company operates. Some industries, such as 

technology, are constantly evolving, which can lead to changes in job requirements and skills. 

This can lead to job insecurity for employees who are not able to keep up with the changes. 

Additionally, the level of education and skills of the employee can also impact job stability and 

security. Employees who possess specialized skills, such as those in the healthcare industry, 

are often in high demand and have greater job security.  

Promotion Opportunities 

A promotion can be defined as a movement from one grade of work to the higher grade in the 

same Industry or organization with increase in duties or responsibility. There are some 

organizations where change from one grade of work to a higher grade is always accompanied 

by an increase of salaries and this motivates the employees to work harder and attain the 

organizational goal in an efficient manner. The effect of promotion was indicated by some 

scholars who conducted the research and made a conclusion that there is a positive influence 

of promotion on employee performance. The promotion was considered hand in hand with the 

increase in salaries and the benefits (Kamau, 2013). 

A promotion is the advancement of an employee within a company position or job tasks. 

According to Aswathappa (2005), promotion to the next grade in most organizations is through 

a competitive interview where employees have to show evidence of higher performance than 

their colleagues competing for the same promotion in order to qualify for the promotion. 

Hussain (2007) reiterates that grade structure provides promotion as a very strong motivation 



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ISSN 2520-4697 (Online)        

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for employees to perform highly and attain the non-cash rewards such as recommendations, 

testimonials, certificates and other non-cash tangible awards which they accumulate to give 

them a better chance in promotion to the next job grade (Aswathappa, 2005). 

A promotional opportunity is defined as the degree to which an employee perceives his or her 

chances to grow and be promoted within the organization. Employees expect to work in jobs 

that provide them with opportunities to be promoted to new and challenging positions. Dockel 

(2003) states that individuals ought not exclusively be compensated monetarily yet ought to 

likewise be offered chances to ascend inside the association. Advancement offers open doors 

for progression and is likewise one of Herzberg inspirations which can be utilized to upgrade 

maintenance. Workers who feel stale in their positions for the most part are not propelled and 

won't be submitted stay in unfulfilling positions.  

Deferred (Retirement) Benefits and Employee Retention 

Oguejiofor, Chinyere, Umeano and Ngozi (2018) carried out a study on retirement benefits and 

employee performance in selected firms in Anambra State. The study adopted a survey design, 

where structured questionnaire to which option were attached was given to the 83 respondents 

that formed the population of the study. The mean statistics was used to answer the research 

questions while the null hypothesis which stated that retirement benefits have no significant 

effect on employees’ commitment on the job was tested at 0.5 significant level using person 

correlation. Finding revealed among others that retirement benefits increase employee’s 

commitment on their job in the two selected firms. They study therefore recommended that 

human resource managers of firms should review the current retirement package since a good 

retirement package will attack and retain employees in their firms and also improve their 

performance. The researcher notes that despite this study’s finding a conceptual gap exist as 

this current study focus is on employee retention and not employee performance to be 

conducted deposit money banks in South-South, Nigeria. 

Chalmers, Johnson, and Reuter, (2014) examine the effect of pension design on employer costs 

and employee retirement choices: Evidence from Oregon. Participating employers include all 

state agencies, universities, and school districts; and almost all cities, counties, and other local 

government units. Administrative data obtained from PERS allow us to calculate PERS 

member i's retirement benefits under the DB, DCDB, and DC benefit formulas if she chooses 

to retire in month t. These data also allow us to determine when member i becomes eligible to 

receive PERS retirement benefits and, when member i is currently employed, the PERS 

employer code. The sample includes 62,953 unique members who work for a PERS-covered 

employer and are eligible to retire at some point between January 1990 and December 2003. 

Members enter the sample when they become eligible to retire or, if they are already eligible 

to retire, in January 1990.  The study concludes that Oregon's Public Employees Retirement 

System (PERS) offers employees a pension plan that is both generous and complex. We find 

strong evidence that plan members see through the plan's complexity and time their retirements 

to maximize their monthly benefits. This behavior imposes direct costs on employers through 

higher benefits as well as potentially large administrative costs arising from shortened careers 

and lumpy retirements. The researcher identified a contextual gap in the above examined study 

in that it focused on employee in Oregon but the current study is focusing on deposit money 

banks in South-South, Nigeria. 

Haan, and Prowse (2014) did a study to estimate a structural lifecycle model of individuals' 

employment, retirement and consumption decisions in Germany. The analysis found that an 

increase of 3.76 years in the pension age threshold or a reduction of 26.8% in the per-year value 

of public pension benefit would balance the fiscal consequences related to the increase in life 



European Journal of Human Resource    

ISSN 2520-4697 (Online)        

Vol.7, Issue 2, pp 45 - 59, 2023                                                                www.ajpojournals.org 
                                                                                                                                 

52 

 

expectancy anticipated to occur over the next 40 year. It was concluded that individuals are 

willing to forgo 8.51% of baseline consumption to avoid the cut in per-year pension value and 

an increase in the pension age thresholds makes 87.7% of individuals better-off while 

encouraging job satisfaction and employee retention. The researcher identified a contextual gap 

in the above examined study in that it focused on employee in Germany but the current study 

is focusing on deposit money banks in South-South, Nigeria. 

Solem, Syse, Furunes, Mykletun, De Lange, Schaufeli, and Ilmarinen, (2016) studied the effect 

of retirement plans on employee behavior. Panel data from the Norwegian Study on Life 

Course, Ageing and Generation were used in all analyses. Registry data from Statistics Norway 

were linked to the respondents. The response rate in the first round. The study concluded that 

retirement plans affected employee satisfaction and retention decisions. The authors also found 

few gender differences, however, when controlling for confounders such as income, type of 

work and education, the results suggested that women workers tended to retire later than men 

workers. Based on the foregoing, a methodological gap exists in terms of the method of data 

analysis which was Panel data analysis. However, the current study will used the Spearman 

Rank Order Correlation. Also, a contextual gap exists in that the previous study was situated 

in Norway while the current study is situated in South-South, Nigeria. 

Based on the foregoing, the study thus hypothesised: 

H01: There is no significant relationship between deferred benefits and job stability in tier-

one Deposit Money Banks in South-South, Nigeria. 

H02: There is no significant relationship between deferred benefits and promotion 

opportunities in tier-one Deposit Money Banks in South-South, Nigeria. 

3.0 METHODOLOGY 

The study adopted the cross-sectional research survey design. Primary data was generated 

through structured questionnaire. The population of this study was 135 employees in the 

regional offices of 5 tier-one deposit money banks in located in Port Harcourt from where all 

the activities of the banks covering Rivers, Delta, Edo, Bayelsa, Akwa Ibom and Cross Rivers 

are coordinated. The sample size of 101 was determined using Taro Yamane sample size 

determination formula. The reliability of the instrument was achieved by the use of the 

Cronbach Alpha coefficient with all the items scoring above 0.70. The hypotheses were tested 

using the Spearman’s Rank Order Correlation Coefficient. The tests were carried out at a 0.05 

significance level. 

 

 

 

 

 

 

 

 

 

 



European Journal of Human Resource    

ISSN 2520-4697 (Online)        

Vol.7, Issue 2, pp 45 - 59, 2023                                                                www.ajpojournals.org 
                                                                                                                                 

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4.0 FINDINGS  

Table 1: Correlation Matrix for Deferred Benefits and Measures of Employee Retention 

   

Deferred 

Benefits 

Job 

Stability 

Promotion 

Opportuni

ties 

Spearman's 

rho 

Deferred Benefits Correlation 

Coefficient 
1.000 .462** .315** 

Sig. (2-tailed) . .000 .002 

N 91 91 91 

Job Stability Correlation 

Coefficient 
.462** 1.000 .674** 

Sig. (2-tailed) .000 . .000 

N 91 91 91 

Promotion 

Opportunities 

 

Correlation 

Coefficient 
.315** .674** 1.000 

Sig. (2-tailed) .002 .000 . 

N 91 91 91 

Sig. (2-tailed) .000 .040 .005 

N 91 91 91 

**. Correlation is significant at the 0.01 level (2-tailed). 

Source: SPSS Output 

H01: There is no significant relationship between deferred benefits and job stability in tier-one 

Deposit Money Banks in South-South, Nigeria  

Table 1 shows a Spearman Rank Order Correlation Coefficient (rho) of 0.462 on the 

relationship between deferred (retirement) benefits and job stability. This value implies that a 

moderate relationship exists between the variables. The direction of the relationship indicates 

that the correlation is positive; implying that an increase in job stability was as a result of the 

adoption of deferred (retirement) benefits. Therefore, there is a moderate positive correlation 

between insured benefits and job stability in tier-one Deposit Money Banks in South-South, 

Nigeria. Similarly displayed in the table 4.24 is the statistical test of significance (p-value) 

which makes possible the generalization of our findings to the study population. From the result 

obtained from table 1, the sig- calculated is less than significant level (p = 0.000 < 0.05).  

Therefore, based on this finding the null hypothesis earlier stated is hereby rejected and the 

alternate upheld. Thus, there is a significant relationship between deferred benefits and job 

stability in tier-one Deposit Money Banks in South-South, Nigeria. 

H02: There is no significant relationship between deferred benefits and promotion opportunities 

in tier-one Deposit Money Banks in South-South, Nigeria. 

Table 1 shows a Spearman Rank Order Correlation Coefficient (rho) of 0.315 on the 

relationship between deferred (retirement) benefits and promotion opportunities. This value 

implies that a weak relationship exists between the variables. The direction of the relationship 

indicates that the correlation is positive; implying that an increase in promotion opportunities 

was as a result of the adoption of deferred (retirement) benefits. Therefore, there is a weak 

positive correlation between deferred (retirement) benefits and promotion opportunities in tier-

one Deposit Money Banks in South-South, Nigeria. Also displayed in the table 1 is the 

statistical test of significance (p-value) which makes possible the generalization of our findings 

to the study population. From the result obtained from table 1, the sig- calculated is less than 



European Journal of Human Resource    

ISSN 2520-4697 (Online)        

Vol.7, Issue 2, pp 45 - 59, 2023                                                                www.ajpojournals.org 
                                                                                                                                 

54 

 

significant level (p = 0.000 < 0.05).  Therefore, based on this finding the null hypothesis earlier 

stated is hereby rejected and the alternate upheld. Thus, there is a significant relationship 

between deferred benefits and promotion opportunities in tier-one Deposit Money Banks in 

South-South, Nigeria. 

Discussion of Findings 

The findings showed that there is a strong positive significant relationship between deferred 

(retirement) benefits and employee retention in tier-one deposit money banks in South-South, 

Nigeria. This finding supports the finding of Oguejiofor, Chinyere, Umeano and Ngozi (2018) 

who carried out a study on retirement benefits and employee performance in selected firms in 

Anambra State. The finding revealed among others that retirement benefits increase 

employee’s commitment on their job in the two selected firms. Also, Chalmers, Johnson, and 

Reuter, (2014) examined the effect of pension design on employer costs and employee 

retirement choices: Evidence from Oregon and found that Oregon's Public Employees 

Retirement System (PERS) offers employees a pension plan that is both generous and complex.  

The current finding also supports the earlier finding of Haan, and Prowse (2014) who estimated 

a structural lifecycle model of individuals' employment, retirement and consumption decisions 

in Germany. The analysis found that an increase of 3.76 years in the pension age threshold or 

a reduction of 26.8% in the per-year value of public pension benefit would balance the fiscal 

consequences related to the increase in life expectancy anticipated to occur over the next 40 

year.  Furthermore, Solem, Syse, Furunes, Mykletun, De Lange, Schaufeli, and Ilmarinen, 

(2016) studied the effect of retirement plans on employee behavior and found that retirement 

plans affected employee satisfaction and retention decisions. 

Deferred retirement benefits play a crucial role in employee retention within organizations. 

Even and Macpherson (1996) in their study found that these benefits serve as a significant 

incentive for employees to remain with their employers for an extended period. As employees 

approach their retirement age, the prospect of receiving deferred retirement benefits becomes 

a powerful motivator for them to stay loyal to their current organization. This is particularly 

true in industries where retirement benefits are highly valued, such as the public sector or 

organizations with strong union representation. By offering deferred retirement benefits, 

employers demonstrate their commitment to the long-term well-being of their employees, 

fostering a sense of loyalty and job security. Moreover, deferred retirement benefits provide 

employees with a sense of financial security in their retirement years, which can also contribute 

to their overall job satisfaction and engagement. As a result, organizations that prioritize 

deferred retirement benefits are more likely to retain experienced and skilled employees, which 

can lead to increased productivity, knowledge transfer, and organizational stability. 

Deferred retirement benefits play a significant role in the banking sector of South-South 

Nigeria. Salolomo and Agbaeze (2019) found that these benefits are defined as the retirement 

plans offered to employees that are payable in the future, usually after a certain period of 

service or upon reaching a specific age. In the context of the banking sector, these benefits 

serve as a crucial tool for attracting and retaining skilled employees. As the banking sector is 

highly competitive, offering deferred retirement benefits helps banks differentiate themselves 

and create a positive work environment. Additionally, these benefits provide financial security 

and stability to employees, which in turn increases their job satisfaction and productivity. The 

study conducted by Salolomo and Agbaeze (2019) found that employees in the banking sector 

who are eligible for deferred retirement benefits tend to have higher levels of job satisfaction 

and are more likely to stay with their current employer. 

 



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5.0 CONCLUSION AND RECOMMENDATIONS 

Conclusion 

The study concludes that deferred benefits positively enhance employee retention in tier-one 

deposit money banks in South-South, Nigeria. The results indicate that employees value the 

long-term financial security and stability provided by deferred benefits, which, in turn, 

increases their motivation to remain with their current employer. 

Recommendation  

Based on the foregoing, the study recommends that deposit money banks should develop a 

comprehensive deferred benefits package that includes various components such as retirement 

plans, pension schemes, stock options, profit-sharing, and long-term incentives. The package 

should be tailored to meet the needs and preferences of employees while aligning with the 

bank's financial capabilities. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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