Abstract:
Deposit money banks in Nigeria are prominent establishments that actively seek out highly skilled individuals from the general talent pool. These banks allocate significant resources towards the recruitment, training, retention, and motivation of their employees. Typically, this investment in human capital contributes to their profitability. However, it is important to consider the broader impact of this investment on the sustainable growth of deposit money banks, beyond mere financial gains. There has been a limited amount of study conducted in Nigeria pertaining to the domain of sustainable development. Therefore, the objective of this study is to analyse the impact of investment in human capital on the sustainable expansion of deposit money banks in Nigeria. The study utilised an Ex-post Facto research design and employed the panel data technique to examine the impact of human capital investment on sustainable growth. Human capital efficiency and revenue per employee were used as proxies for human capital investment, while sustainable growth rate was used as a proxy for sustainable growth. The data for the study was obtained from the audited accounts of 12 listed deposit money banks for the period spanning from 2012 to 2021. The results of the study indicate that there is a negative relationship between human capital efficiency and the sustainable growth rate of listed deposit money banks in Nigeria. Additionally, the study found that revenue per employee contribution has a positive and statistically significant impact on the sustainable growth rate of these banks. The research findings indicate that the allocation of resources towards human capital development has a crucial role in fostering the long term growth and sustainability of deposit money banks within the Nigerian context. The study suggests that it is advisable for deposit money banks to consistently allocate resources towards the development of human capital in order to enhance the productivity of their personnel, thereby contributing to the long-term viability of their business operations.
