Insights from top HR professionals

Exert from a research report produced by BusinessDay research and intelligence Unit

Executive Summary

Late 2012, BusinessDay held its first Human Resources forum, bringing together HR

Professionals from Nigeria's large and medium-sized organisations to discuss talent management challenges in Nigeria. The forum provided a good platform for BusinessDay's Research and Intelligence Unit (BRIU) to conduct the first-ever survey of HR professionals in Nigeria. Forty questionnaires were distributed to participants at the forum. The response rate was 100%. The survey focused on issues relevant to recruitment of Nigerian talent. The results of showed:

1. HR professionals are essentially indifferent to a candidate's university when short listing for interviews or aptitude tests.

2HR professionals rate most candidates interviewed for jobs as “below average.”

3. Creative or entrepreneurial skills are most lacking among candidates interviewed

according to respondents.

4. HR professionals are optimistic that the quality of manpower available in Nigeria will

improve in the future.

5. HR professionals say general business qualifications are currently most in demand by

Nigerian employers .

6. Candidates with professional accounting qualifications are likely to have an edge in the Nigerian labour market as they are the most in demand by employers.

7. There's a shortage of candidates with engineering skills in Nigeria. HR professionals see these skills as being in high demand over the next five years.

8. The average starting salary for college graduates in Nigeria ranges from N50,000.00 to N100,000.

9. Online job sites are now the most preferred mode of job advertisements for Nigerian

companies.

Does a candidate's educational route have an impact on his/her labour market attractiveness?

Our survey respondents overwhelmingly said “No” when asked if the nature of ownership of the university attended by a candidate has any impact on how HR professionals assess and select candidates for interviews and aptitude tests. The survey asked whether the kind of school impacts how they shortlist candidates for management-trainee positions or entry-level positions.

The results show that HR professionals are basically indifferent to nature of ownership of the university candidates attended in shortlisting them for interviews or aptitude tests. In practice, most vacancy adverts ask for candidates to have a minimum grade of “second-class upper” (2.1) to apply for a job. A critical look at the survey responses however shows some salient bias by HR professionals.

Nearly half, 48%, of HR professionals agree that a candidate is likely to be shortlisted for an interview or test because he/she attended a foreign university. This is quite significant and shows an inherent preference for candidates educated outside of Nigeria. This bias is not surprising considering the perception that the Nigerian university system is not turning out candidates suitable for employment.

Among Nigerian university graduates also, there is a bias for candidates from federal

government- owned universities over private owned universities and state owned universities.

Thirty percent of HR professionals surveyed said they would pick a candidate for an interview or test because he attended a federal university. That's compared to 18% who say they would shortlist a candidate just because he/she attended a private university. Also, interesting is the fact that 21% of HR professionals surveyed agreed that attending a state university is a disadvantage to being shortlisted for an interview or test.

Our survey respondents confirmed the unofficial bias by Nigerian organisations for Bachelors degree holders over holders of the Higher National Diploma (HND). Sixty-nine percent of HR professionals surveyed say a candidate with a bachelors degree will have a higher chance of being shortlisted for an interview/test than a candidate with a HND. This is confirmation of the

anecdotal experience of holders of HND in the Nigerian labour market who often find themselves rejected by the labour market, despite spending five years to acquire an HND. The Nigerian government seems at loss for a permanent solution for this anomaly, which has significant financial and psychological costs for those holding an HND.

The Diploma/Degree controversy

Over the years, there's been a growing controversy on the way candidates who hold a Higher National Diploma (HND) are treated compared to candidates with a bachelors degree. Holders of the HND qualification have become basically unemployable by most Nigerian organisations who don't consider them as well trained as their university counterparts. Some organisations —especially banks — actually prefer employing holders of the Ordinary National Diploma (OND) in the low cadre of their organisations rather than HND holders.

In 2006, in a bid to resolve the non-acceptance of HND qualifications by employers of labour in Nigeria, the Federal Government set up a committee to examine how it could merge Polytechnics into campuses of existing universities. The report of that committee was not made public, so the controversy drags on as the Polytechnics and Monotechnics keep supplying manpower held in low regard by the labour market.

No Preference for certain universities

HR Professionals say they have no preference for specific universities in shortlisting candidates for interviews, as 70% of the HR respondents answered “No” when asked if they have specific university preferences. It is worthy to note that 30% of HR Professionals also answered “Yes” to whether they have a preference for Federal Universities in shortlisting candidates for interviews.

Since the surveys were conducted the same day, we may assume that the same set of HR

professionals who have a preference for Federal University graduates that also show preference for specific Nigerian universities.

Since nearly 90% of graduates available for employment are products of the Nigerian public tertiary education system, which has many challenges such as poor infrastructure and overcrowded classrooms, how do these graduates perform on job interviews?

HR professionals were asked to rate the average Nigerian graduate interviewed for a job on a scale of 1 to 10, with 1 being the lowest and 10 being the highest.

The results show 70% of respondents rating candidates at “5” or below. The highest frequency rating was 5, with 37% of respondents rating the candidate as average but only 30% of respondents considered the quality of candidates interviewed for jobs as above average.

How Nigerians use social media

WITH A POPULATION OF 167 million and 56 million internet users as at December 2012, Nigeria is the biggest internet market in Africa. Of the 115 million mobile telephone subscribers in the country, 35 million use their handheld devices to access internet data services.

Between 2000 and 2012, internet penetration grew from a paltry 0.06 percent to 34 percent, and there are indications that this trend will continue well into 2020.

Nigeria will remain the largest internet market on the continent in the near future because it has a large youth population (one-third of the population is between the 10-24 years age bracket) and a growing middle class estimated at 23 percent (appx. 39 million) of the population by Renaissance Capital in 2011. Nigeria has a fast-growing number of the two classes which traditionally drive internet usage around the world.

In Nigeria, there is a draught in a comprehensive attempt to profile Nigeria’s online users and to give a description of what they do online, where they do it, what devices they use to access the internet, and the factors which affect what they do online at any particular time. Thus BusinessDay Research and Intelligence Unit (BRIU) has investigated the trends and has a comprehensive report on these behaviours. Excerpts of the survey section of the report are detailed below.

Survey methodology

Conducted between May and July 2013, the survey randomly drew respondents from Lagos (82 percent), the FCT, Delta, Edo, Ekiti, Imo, Kogi, Ogun and Rivers online. An online portal which was programmed to reduce the incidence of multiple responses from single individuals was deployed. Questionnaires were then distributed across multiple channels including Facebook, LinkedIn, Yahoo, Gmail and specific company email addresses.

While an online survey methodology allows for tremendous scale and reach, it provides a perspective only on the habits of existing internet users, which are the focus of the research. Additionally, survey responses are based on claimed behaviour.

Most of the respondents are employees in the financial services industry (29 percent), manufacturing outfits (5 percent), public sector/civil servants (20 percent), agriculture (3 percent), while media, ICT and oil and gas account for 45 percent.
More than half are mid-level management staff; senior management staffs make up 16 percent of sampled individuals, while non-management personnel make up 21 percent of respondents. Only 7 percent are business owners.

Gadgets used to access the internet

There is a clear pattern in the distribution of gadgets used to access the internet. Laptops are the most popular. They constitute 62 percent of gadgets used to surf the web. Phones and desktops account for 49 percent and 47 percent of gadgets used, while tablets account for the lowest percentage, 24 percent (most respondents use a combination of gadgets).

We believe that the preponderance of mobile computers has adversely affected the trend in gadgets used for internet access as more and more individuals are interested in platforms which avail them of the internet on the “go”. Based on this, we expect further increase in the demand for more mobile computers as more individuals transit from the traditional cathode ray tube systems to lighter, more energy-efficient computers. Also, we see an expansion of demand for mobile internet bundles.
An examination of the responses based on gender reveals that, apart from tablets, females are more likely to use light gadgets than males, but there is no significant difference in the percentage of usage across gender.

But the preponderance of tablets is higher among males than females. Response pattern does not show an established variation between age and the type of devices used to access the internet.

Brands used to surf the internet

Respondents were asked if they use particular brands for online access. Their responses present a kaleidoscope of information which gadget marketers and makers can use for strategic campaigns. They were asked along phone, laptop, desktop and tablet lines.

Phone brands

More than half of respondents use BlackBerry smartphones for internet access while Nokia and Samsung account for 24 percent and 19 percent, respectively, of gadgets used to access the web. Other important bands include the iPhone which is used by 5 percent of respondents, and Sony Ericsson, used by 2 percent of respondents.

We believe that the Sony Ericsson brand is yet to make a major mark on the Nigerian phone user; also, though Apple products are considered as premium in the country and are thus used by a select few, pricing can, however, tilt this equation in favour of the brand.
Both brands may gain more ground through advertising, putting in place some price discrimination in favour of the Nigerian market which is still very fruitful for smartphone users. For the low-end market, Nokia phones seem to dominate the market with other brands, mainly from Asia, making a significant entry into the market.

When gender is factored into the equation, the picture seems to be a little more detailed as a higher percentage of females use BlackBerry smartphones than males. Sixty-seven percent of phones used by females and almost half (45 percent) of phones used by male respondents to access the internet are BlackBerry handsets.
For the male segment of the market, 21 percent use Samsung smartphones while 17 percent of females who took the survey use the Samsung brand for internet access. Nokia accounts for 27 percent of phones used by males for access while the brand accounts for 8 percent of phones used by females.

Laptop brands

Data from respondents shows that HP brand come top among the brands used to access the internet by respondents. We believe that this can be used as a proxy for the most popular laptop brands in Nigeria.

The brand accounts for over a three quarter of laptops used by respondents to access the internet and 61 percent of desktops used. Also, correlated with HP is the Compaq brand which also accounts for a significant portion (13 percent) of laptops which respondents say they use online.

Dell is also a formidable brand in Nigeria as it accounts for 13 percent of laptops and 18 percent of desktops used to access the internet by respondents. Other important brands which respondents indicate that they use are Acer, Mac and Samsung. These brands represent a minor percentage of computers used by respondents.
It is not obvious that there is an age or gender bias to the use of any particular brand. A male is equally likely to use a HP laptop or desktop as a female. What is, however, different is that males seem to exploit a more assorted array of brands while females use the traditionally known brands.

Tablets

The share of tablets as gadgets used to access the internet relative to other gadgets is still small. However, Samsung and Apple products account for all tablets used by respondents.

For the males and females sampled, Samsung tablets account for a higher portion of tablets in use. They account for 60 percent of gadgets among males and 67 percent for females. Thus for every one iPad in use, there are at least two Samsung tablets. Difference across the age brackets for particular brands is not obvious.

How respondents use the internet

The main reason respondents browse the internet is to search for information. Other major reasons include sending emails and work.
As many as 84 percent are online for information gathering purposes, 81 percent use the platform mainly to send e-mails, while for 76 percent it is part of their work tools. Though social media is important to users, only 45 percent of those sampled see it as the major reason they go online.

From the responses, it can be inferred that there is less buying and selling activity online among respondents compared to other online activities. Only 7 percent of them see buying and selling as a major reason they are on the internet, while 19 percent see paying for services as a major reason for being online. Finally, 26 percent of all respondents consider checking bank accounts as a major reason for going online.

We believe there is a vacuum in online sales and marketing in Nigeria even as internet penetration continues to grow. But there is evidence that more individuals have embraced internet banking compared to buying and selling online. Trust, access to online payment infrastructure and knowledge of how these processes work have been identified as clogs in the wheel of online buying and selling business in Nigeria. We believe that continued reinforcement of publicity on how the whole process works and how safe and easy it is can significantly tilt the equation in favour of online buying and selling in the country.

Viewed from the point of view of gender, the major activities carried out online are the same. But while 6 percent of females see buying items online as a major reason for being on the internet, only 1 percent of males have the same view. Also, while 8 percent of female respondents see paying for services as a major reason for being on the internet, only 4 percent of males have the same view.

Social media sites with the buzz

Across the website types, social media accounted for by far more traffic. Facebook, Twitter, LinkedIn, My Space, Tumblr and Instagram were among the social media platforms investigated in the survey. Of the lot, 73 percent of the respondents said they are active on Facebook daily, 35 percent are active on Twitter, while LinkedIn accounts for 25 percent of social media presence. On the other hand, Tumblr, My Space and Instagram are yet to make any impact on respondents. Their combined patronage is less than 2 percent of respondents.

All the females that took the survey say they visit Facebook regularly, while more than a three quarter use Tweeter. Sixty-four percent of respondents say they use LinkedIn and Skype, respectively, while Google+ and Whatsapp are used by half of female respondents, respectively. Less popular sites among females include Instagram and Pintrest. Both sites account for less than 15 percent of female traffic.

We believe this information is important to brand advertisers and publishers who work on female-sensitive brands. Targeting online advert in the direction of websites with most of the female traffic will create the level of brand resonance, reach and reaction which advertisers seek. Since more women frequent these sites, the probability that an online campaign targeted through them will succeed is higher.

Not all male respondents visit Facebook. Only 97 percent of male respondents have Facebook accounts and use them regularly, though this is significant. LinkedIn is the second most important social media site visited by males, more than half (56 percent) of all respondents to the survey use it.

Google+, Y-Messenger, Skype, and Tweeter are used by an average of 50 percent of respondents, while sites like My Space and Instagram have very low penetration among those sampled.
Advertisers and media executives who want to engender brand awareness can use the information contained in the complete report for selecting the best platform for online ads.

What sites do people visit using mobile devices?

One important finding in the survey is that the amount of traffic sites enjoyed is different depending on what each site offers. But even among sites which offer the same services, there are more hits for some sites than others.

Respondents to the survey were asked about the websites they visit most on their mobile phones and the results show that Facebook, Yahoo, Google and newspaper sites have the highest patronage.
As many as 73 percent of the respondents said they use Facebook on the go, while Tweeter and LinkedIn have 35 percent and 30 percent of respondents’ attention. The survey shows that MySpace, Instagram and Tumblr have gained little ground in Nigeria. Their average patronage is less than 2 percent of respondents.

Apart from social media, Yahoo, Gmail and newspaper websites are the most frequented. Sixty-five percent of respondents visit Yahoo daily, 44 percent of respondents visit Gmail and newspaper websites sites daily, while recruitment sites attract 13 percent of traffic. Also important is the level of attention received by Nigerian and foreign corporate sites: they attract 12 percent and 19 percent of traffic, respectively.

Conclusion

Nigeria presents an exciting opportunity for ISP and online advertisers. But understanding the dynamics of the internet and the way those who use it do will go a long way to engender success. The online environment is very dynamic and the most recent information must be obtained as soon as it is available.

NDIC PAST PRESENT, FUTURE

It was need that occasioned the establishment of the Nigeria Deposit Insurance Corporation 25 years ago. NDIC has its origin in the report of a committee set up in 1983 by the Board of Central Bank of Nigeria (CBN), to examine the operations of the banking system. The Committee in its report recommended the establishment of a Depositors Protection Fund. Consequently, the Nigeria Deposit Insurance Corporation was established a few years later.

Years down the road, it can be confidently said that the agency has worked effectively to justify its existence. Modeled after its American counterpart, the Federal Deposit Insurance Corporation (FDIC) which was established in 1933, the NDIC was set up among other things to protect depositors and contribute to the stability of the financial system through effective supervision of insured institutions, provision of financial and technical assistance to eligible insured institutions, prompt payment of guaranteed sums and orderly resolution of failed insured financial institutions. 

There were at least five major reasons for establishing a formal bank deposit insurance scheme in Nigeria. The first was the lesson of history connected with the experience of prior bank failures in Nigeria. The establishment of NDIC was also informed by the approach which some other countries adopted to ensure banking stability. For example, Czechoslovakia which was the first country to establish a nation-wide deposit scheme in 1924, used the scheme to revitalize the country’s banking system after the First World War. In addition, the scheme served to encourage saving, by increasing the safety of deposits and ensuring the best possible development of banking practice in that country. 

NDIC insures CBN approved deposit taking institutions including the deposit Money Banks, Microfinance banks and Primary mortgage institutions. Financial institutions not covered by NDIC include development finance institutions such as bank of industry, development banks, discount houses, finance companies, investment firms, unit trusts/mutual funds, insurance companies and pension fund administrators. 

The establishment of an explicit deposit insurance scheme with supervisory powers over insured institutions was expected to complement the supervisory efforts of the CBN. Indeed, since the establishment of the Corporation, it has been possible for both institutions (CBN and NDIC) to carry out routine and special examinations of licensed financial institutions in their collective domains more frequently than before, despite the increase in the number of institutions. The banks are now examined more frequently prior to the establishment of the Corporation. 

Finally, prior to the establishment of the Corporation, government had been unwilling to let any bank fail, no matter a bank’s financial condition and/or quality of management. Government feared the potential adverse effects on confidence in the banking system and in the economy following a bank failure. Thus, government established the Corporation to administer the deposit protection scheme on its behalf and to serve as a vehicle for implementing failure resolution options for badly managed insolvent banks.

The NDIC has witnessed a series of challenges in recent times as the operating environment becomes more complex and financial vehicles more diversified. But the important thing is that each time, the corporation has stood up to the occasion in managing distressed institutions and promoting confidence in depositors. Currently, the recovery of loans of the banks under liquidation, the unwillingness on the part of some debtors to honour obligations, the slow pace of the judicial system in resolving some NDIC related disputes and the increasingly dicey financial landscape are major challenges NDIC has faced.

One particular issue which has affected the corporation is the  transfer of cases being handled by the defunct Failed Bank Tribunals to the Federal High Courts in 1999. This process has exacerbated the challenges faced by NDIC in its liquidation activities in particular and for banks’ operations in general. This is because the normal court processes and procedures is not only slow and cumbersome, but easily susceptible to abused by bank debtors.

The delay in disposing of cases brought before the courts has adversely affected the NDIC in debt recovery in respect of banks in liquidation and other operating banks’ ability to recover hard-core debts.

These challenges notwithstanding, the corporation has stood up to the task before it. Last year the NDIC was instrumental at resolving the crisis which followed the closure of 103 microfinance banks. The corporation successfully handled the pay-out exercise after the closure of the microfinance banks in the most professional manner. NDIC was strongly behind the CBN in managing the commercial banking process and worked to see to it that there was no bank run occasioned by the shake up in the banking sector in the past two years.

The corporation has also grown its funds so as to be prepared to carry out its role. As at the end of 2010, the size of the deposit insurance fund available to NDIC was N295.72 billion, 31 percent higher than its previous value in 2009 and 75 percent bigger than the size of the fund in 2008. The Special Insured Institutions Funds (SIIF) experienced exponential growth between 2008 and 2009 from surpluses set aside by the NDIC. As at the end of 2010, the total invested fund and the current account balance of NDIC stood at N338.8 billion.

Item	2008		2009	2010
Total number of depositors	30.3million		40.1million	44.5million
Total number of depositors fully covered at N5000,000	Na		na	41.9million
% of fully covered depositors				94
Total number of depositors partially covered at N5000,000				2.6million
% of partially covered depositors				6million
Total deposit fully covered at N500,000				1,310 billion
Total deposits partially covered at N500,000				9,526billion

Source: NDIC

Even though NDIC is faced with various challenges, the institution has been successful at recovering a considerable amount of debt and distributing funds to the appropriate individuals. The Corporation had as at October 2011, recovered a total of about N22.20 billion from the debtors of the closed banks. Similarly, the corporation had recovered about N9.44 million from the debtors of microfinance banks in liquidation as at October 2011. In the past, the NDIC has done a lot to make the deposit insurance scheme sustainable; there is enough evidence that the future of deposit insurance in Nigeria is bright.