Human resource development as a determinant of performance: Panel evidence from the banking industry

In 2010 the Central Bank of Nigeria (CBN) revealed that financial institutions in the country suffered from performance issues involving institutional factors mainly human resource failures which led to serious operational risks. This expose correlates the assertion of the Organisation for Economic Co-operation and Development (OECD) which identifies human capital as key to the determination of growth in an economy.The objective of this study is to investigate relationship between human resource development and performance of commercial banks using the panel data of 6 commercial banks in Nigeria from 2006 to 2011.Through the use of panel data analysis, the results show that appropriate salary and wage policies as well as training are significant human resource development elements which positively influences performance of commercial banks quoted in the Nigerian Stock Exchange.These findings imply that commercial banks should diversify their salary and wage remuneration strategies and also step up training within their respective structures so as to guarantee improved performance.