The Human Resource Report-Nigeria

7/30/2019 The Human Resource Report-Nigeria

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BUSINESSDAYRESEARCH INTELLIGENCE&

Nigeria's Human

Capital ChallengesInsights from HR Professionals


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Economic and Sectorial Reports Release Calendar for 2013

Nigeria's Human Capital Challenge: Insights from HR Professionals

Nigeria's Infrastructure Finance report

Nigeria Executive Compensation Report

Nigerian banks 1st quarter 2013 performance report

Nigeria's emerging mobile payment market: Potential and Opportunities

Telecoms Nigeria Report

Business Case for Investing in Lagos State

The Nigeria Power Sector Report

The 2013 Nigerian Insurance Firms Performance Report

The 2013 Ghana Banking Annual Performance Report

Pharmaceutical and Healthcare sector Performance Report

The 2013 Nigerian Banking Annual Performance Report

FCMG sector Performance Report

Nigeria Oil and Gas Downstream Report

Building materials sector performance report

Nigerian Banking Outlook for 2013

Oil and Gas upstream Nigeria report

Nigeria's Retail Commercial Property Market Report

3rd quarter reports July to September 2013

4th quarter reports. September to December 2013

Nigeria Power Sector Reforms update

Nigeria's solid mineral -The opportunities and the challenges

2nd Quarter Reports April to June 2013

Nov 16th 2012

April 15th 2013

February 15th 2013

June 30th 2013

December 15th 2012

May 30th 2013

March 30th 2013

July 15th 2013

October 15th 2013

August 30th 2013

December 15th 2013

July 30th 2013

November 15th 2013

September 15th 2013

December 17th 2013

Dec 13th, 2012

May 7th 2013

March 15th 2013

January 30th 2013

June 15 th 2013

For advert opportunities and sponsorships of the reports and other enquiries call:

Anthony on 08185193932

Or send e mail to: [email protected]


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Nigeria's Human Capital Challenges

Insights from HR Professionals

On 11 November, 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 shortlisting

for interviews or aptitude tests.

2. HR professionals affirm they are unlikely to shortlist candidates holding a Higher National

Diploma (HND) for an aptitude test or interview.

3. HR professionals say they are indifferent to which universities of candidates attended

when shortlisting for interviews or aptitude test.

4. HR professionals rate most candidates interviewed for jobs as below average.

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

according to respondents.

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

improve in the future.

7. Employers say general business qualifications are skills currently in the most demand.

8. 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.

9. 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.

10. The average starting salary for college graduates is in Nigeria ranges from N50,000.00 to

N100,000.

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

companies.


Executive Summary


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This report is geared to policy makers and organisations wishing to get insights into labour market

issues in, as well as professionals looking for industry views on relevant HR issues in Nigeria. The

reports discusses the Nigerian labour market and the issues that drive the market and contains

insights from the BusinessDay HR Forum.




Executive Summary contd.


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In the battle between nations and companies for global dominance, the most valuable asset any

nation or company can deploy is its human capital. The intellectual quality of the human capital is

critical to a country's economic development or a company's competitiveness in an economy.

Nigeria's global economic competitiveness remains largely dependent on the quality of its human

capital just as companies rise or fall on the back of the quality of their human capital.

Intellectual quality of human capital is however a function of the quality of the nation's

educational system which is the source of labour supply to a nation's economy. While nations can

determine the quality of the human capital at their disposal, most firms are largely takers of

available human capital within their markets as they often have no control over the educational

system of the country in which they do business.

When nations improve the standards of their educational system, the quality of human capital

available for companies operating in that market improves. Where the quality of human capital is

low, firms are usually compelled to import their human capital needs from other nations with

higher quality human capital at significant costs to the local economy. For example, Africa spends

an average of $4 billion per annum on expatriates according to figures from McKinsey.

Low quality human capital has a negative impact on the competitive position of firms operating in

a particular economy as they are unable to come up with the winning strategies that they need to

compete in an increasingly interconnected world. The quality of human capital therefore has a

direct bearing on corporate competitiveness and economic growth.

Highly populated countries such as Nigeria tend to have an abundance of human capital.

Therefore, the challenge is the quality of the available human capital. In Nigeria specifically, a

deteriorating educational system has had a significant impact on the quality of human capital

available for development.

Nigeria's over supplied labour market

This section of the report examines briefly, the challenges of the Nigerian labour market. The

Nigerian National Bureau of Statistics (NBS) defines the labour force is defined as people between

the ages of 15 and 64 actively seeking employment. The NBS notes that there was a rise of new




The State of Nigeria's labour market


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entrants in to the Nigeria labour market beginning in 2007, attributable to the addition of 15 new

universities, nine polytechnics, and nine new colleges of education since 2006. While the addition

of more educational institutions increased the supply of the labour force, the data from the NBS

does not however capture the intellectual quality of the new members who joined the labour

force.

Figures from the NBS show that an average of 1.37 million enrolled in universities, colleges of

education and polytechnics in 2006 and another 1.98 million Nigerians enrolled in 2008. Given a

4 and 5-year educational period, most of these students about 3.2 million entered the job

market in 2010 and 2011.

The challenge, however, is that many of those leaving universities are not getting jobs. Current

unemployment figures are put at 23.9% of the labour force. For those with a first degree, the

unemployment rate stands at 20.2%. The data does not capture those who are underemployed.

It is estimated that an average of 49 million Nigerians are unemployed and of these number, 52%

are actually unemployable because they lack any sellable skills. To understand the critical

challenge of unemployable in Nigeria's labour market, it is important to understand the

challenges in the labour market supply chain.




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The challenges in Nigeria's labour supply chain

2006 2007 2008 2009 2010

Total number of Universities

Total number of Federal Universities

Total number of state Universities

89

27

21 21212121

27272727

95 95 104 104

30 30 3436 36

Total no of private Universities

Total Number of Polytechnics

Total No of Colleges of Education

Total No of Federal College of Education

Total No of State college of Education

Total No of Private College of Education

Total Number of senior secondary schools

Total number of Primary schools

Junior Secondary school (Private and public)

Total number of nomadic schools

32 34 34 41 41

66 67 71 75 75

79 80 85 85 88

42 42 43 43 45

16

7,915 14,410 NA NA NA

17 21 21 22

10,615 16,238 19,244 3,410 3,439

77,668 92,007 98,631 98,631

2,244 2,304 2,289 2,953 3,060

Source: National Bureau of Statistics

Table I Type and number of formal education institutions in Nigeria




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The students that never get to the university

As the table above shows, the number of educational institutions available to train manpower for

Nigeria's labour market has steadily increased. But the quality and accessibility of the institutions

have not caught up with the challenges of Nigeria's population growth. The number and variety of

educational institutions available are not meeting millions of Nigerians' educational needs.

For many Nigerians, the labour market challenge starts from birth. With an average estimated

birth rate of 6 million per annum, 10% of eligible Nigerian children never get the chance to step

into a classroom. There is also a significant gap between the number of students who enrol in

Nigerian universities and the number of students that are enrolled in primary schools, an

indication of the high dropout rate between both levels of education. Figures from the NBS shows

that only about 3.5% of children enrolled at primary school continue their education to the

university level. Also only about 2.68% of children in primary schools eventually attend

Polytechnics or Monotechnics or colleges of education.

All Universities

Federal Universities

State Universities

Colleges of education

Private Universities

Polytechnics

Monotechnics


765,522 1,401,888 661,493 577,029 605,068

464,025 610,072 433,950 342,524 339,364

277,043 448,618 187,279 191,565 218,861

24,454 37,369 39,264 44,940 46,843

290,318 305,829 315,426 346,006 n/a

303,190 258,877 233,045 222,273 229,862

19,623 16,789 14,690 17,321 13,239




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The students that never get to the university

All Primary schools

Public Primary schools

Private Primary Schools

Public Secondary schools

Secondary schools

Private Secondary schools

Nomadic

22,861,884 21,632,070 21,294,517 20,080,976 20,663,805

21,717,789 20,469,395 18,980,395 18,818,544 19,042,167

1,144,095 1,162,675 1,011,019 1,262,432 1,621,638

6,009,869 n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

5,637,783

5,013,531 5,067,787

624,252 880,194

408,705 432,411 415,426 483,557 484,694


Of those who get to secondary schools, less than 30% take the Senior School Certificate

Examinations (SSCE). For example, figures from the West African Examinations Council (WAEC)

shows of the 1.67 million students who sat for the May/June 2012 final SSCE, only 38.8%

(651,300) of them obtained the required credit in Mathematics and English, the prerequisite for

university admission in Nigeria. In between primary and any form of tertiary education in Nigeria,

there are about 25 million children who never get to taste any form tertiary education. This has a

significant impact on quality of Nigeria's labour market.

Qualities of effective HR Management

The CEO leads as the Chief Human Resource Manager

The Company has a strong internal value proposition.

The firm has a strong people philosophy

A strategic work force planning system is in place




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Lack of options for missing students

The existing options for those who never get to taste any form of tertiary education or drop out of

secondary school or primary school are grim. Though there are 132 technical colleges and 70

vocational enterprise centres in Nigeria, most are understaffed with obsolete facilities, according

to a September 2012 paper by Dr M.I Oseni, of the Mechanical Engineering Department of the

University of Agriculture, Markurdi.

This situation creates a high number of low skilled, poorly educated workforce in the Nigerian

labour market. The impact is seen in the large pool of poorly trained technicians, notably auto

mechanics, builders, carpenters, plumbers in the workforce. The majority of these technicians get

their training as apprentices from practising technicians who are only as good as those who also

trained them. In reality, these technicians are unemployable.

Workers who acquire skills in this manner are not competitive in the labour market. They usually

do not have any paper qualifications to back up their training, a barrier to getting formal

employment due to documentation requirements. Thus, they operate largely in the informal

business environment where they are largely unregulated and untaxed.

The unemployment level in the Nigerian labour market has been deteriorating. It stood at 19% in

2009, 21.1% in 2010 and 23.9% in 2011, according to the latest data from the NBS. The NBS data

puts the unemployment situation in the rural area at 25.6% and in the urban area at 17.1%. The

high level of unemployment in the rural areas is surprising considering that agriculture is the

mainstay of the Nigerian economy making up about 43% of Gross Domestic Product (GDP).

Demographics of the Nigeria's unemployed vary widely, NBS figures show. For those who have

never attended school, the unemployment rate is 22.4%, but it drops slightly to 21.5% for those

who have attended primary school. Surprisingly, for those who attended vocational or

commercial schools, the unemployment rate is a high 28.7% and is even worse at 33.4% for those

who completed Junior Secondary School (JSS) but could not go further with their education. It

Level of unemployment




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Dual educational routes to the Nigerian labour market

Dual educational routes to the Nigerian labour market

Nigerian youths that come into the formal labour market do so mainly through a dual education

route, the private education route and the public education route. The private education route is

expensive, less crowded resulting in a higher quality of teaching resulting in better prepared

graduates. The public education route is cheaper and overcrowded, resulting in lower quality

graduates. As the figures in Table II shows, there is an average of 20 million children in public

primary schools in any year compared to an average of about 1.3 million in private primary

schools.

The difference in quality of education between public and primary schools can be captured in the

student-to-staff ratios. For example, the student to staff ratio at federal universities stands at 34:2.

It stands at a higher 59:1 at state universities. The ratio at private universities in 2007 was 19:2.

This may partially explain the disparity in the quality of education received by students within the

different university systems.

At the BusinessDay HR Forum where the survey for this study was conducted, a top consulting

firm disclosed that it usually gets a 3% pass rate on its employment tests; those who pass mostly

hail from Nigeria's private universities. It appears private universities, which are usually very

expensive and unaffordable to many Nigerians, may become the source of quality manpower for

the Nigerian labour market in the future. drops significantly to just 5.1% for those who have a

Masters degree compared to 20.2% for those with a Bachelors degree or HND.

McKinsey's Advice to HR Professionals:

HR practitioners should make a difference

Come out of their shell and engage management

Think globally

HR Professionals should show their value to the company in measurable ways

Get creative about manpower management


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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.

CHART I:

The survey asked four different questions, presented below, with the answer graphically represented:

1.1 Does being a graduate of a private, Nigerian university give a candidate an edge in being shortlisted for an interview?

0 804020 6010 905030 70

Yes

No

0 804020 6010 905030 70

Yes

No

1.2 Does being a graduate of foreign university give a candidate a higher chance of being shortlisted?


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1.3 Does being a graduate of a state university present a disadvantage when it comes to being shortlisted for a test or interview?

0 804020 6010 905030 70

Yes

No

0 804020 6010 905030 70

Yes

No

1.4 Does being a graduate of a federal university offer an advantage of being shortlisted for a test/interview?


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Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara


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. drops significantly to just 5.1% for those who have a Masters

degree compared to 20.2% for those with a Bachelors degree or HND.



Manpower planning

Have a human capital plan, ensuring the availability of competent personnel at all times

Always have people in training for new branches and key roles


15/33

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Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara


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. .



Preference for Bachelor's degree over HND

0 804020 6010 905030 70

Yes

No


16/33

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EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara


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.



The Diploma/Degree controversy

Tips on how to treat your employees

Understand your employees have options

Do not use them as tools

Use them as customers so that they can give you the best

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 towhether 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.

HR Insight


17/33

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Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara




0 804020 6010 905030 70

Yes

No

HR Professionals say they have no preference for specific Nigerian Universities

Since nearly 90% of graduates available for employment are products of the Nigerian publictertiary 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.

HR professional's rating of graduates interviewed

for a position

No preference for specific Nigerian universities


18/33

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Ekiti

Gombe

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Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara




Rating of candidates interviewed

0 402010 305 2515 35

Average rating of candidates interviewed

R6

R5

R3

R4

R8

R7

HR professionals agree that it is not enough to graduate with excellent academic skills. They

identified several skills that are expected from the modern graduate from any tertiary institution.

HR professionals agree that they generally desire certain skills in candidates they seek to recruit.

The skill sets identified include:

a. Information Technology (IT) Skills

b. Verbal Skills

c. Numeric Skills

d. Creative Thinking Skills/Entrepreneurial Mind-Set

e. Negotiating Skills

Our survey asked HR professionals what skills they find most lacking in Nigerian graduates

interviewed for vacant positions. They identified creative thinking skills as the most lacking

among candidates seeking employment.

Skill sets desired by HR professionals


19/33

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Ekiti

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Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara




Tips on top talents

Academic excellence does not translate into being a talent

Talent management focused only on the top talents is not the best strategy

The higher the talent, the lower the loyalty

Take care of the average performers. The team is more important. Those at the top of the talent pool

should not exceed more than 20% of your compensation packageIt is critical to retain top talent. When such crucial talent leaves; it has a disproportionately negative

business impact on the organisation

0 402010 305 2515 35

Skills most lacking in candidates

45

Negotiating Skills

Creative Thinking Skills

Numerical Skills

IT Skills

Verbal Skills

Verbal skills rank second as the most-lacked skill set among candidates seeking jobs, while

numerical skills ranked third, almost on the same level as IT skills.

In a challenging economic environment, there is no doubt that employers would value creative

thinking or entrepreneurial skills. Creative thinking skills are not, however formally taught in

schools, but can be enhanced in the formal academic environment by the way work is designed


20/33

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Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara




and delivered to students. Nigerian tertiary institutions may thus have look critically at how

students are taught. Many students admit that most lecturers in the tertiary education system are

more comfortable with students regurgitating exactly what they have been taught in class.

Lecturers typically don't allow students to argue an opposing viewpoint which may be coherent

but not what was not taught in class. This tendency produces students who are good at cramming

rather than thinking. This may be a critical deficiency in the Nigerian educational system.

Strategies adopted by Nigerian employers to retune

freshly employed graduates

HR professional who spoke at the BusinessDay HR forum argued that deficiencies in the Nigerian

academic environment are responsible for the large turnout of graduates not suitable for

employment.

The HR practitioners also explained what they are doing to better equip unemployable graduates.

Some strategies include direct collaboration with schools by providing internships with top

employers while still in school to so they can understand the real demands of the work

environment. Accenture is one company with such an internship program.

Most employers however have a post-employment fine-tuning strategy in place to adapt new

entrants to their needs. Nigerian employers generally conduct entrance-level tests for fresh

graduates to weed out poor academic performers.

Candidates who pass aptitude test and interview processes are however taken through further fine-tuning processes.


21/33

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Kano

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Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara




Case Study

MERISTEM TALENT MANAGEMENT PROGRAMME

Meristem, a Nigerian asset management company, runs a Talent Management Programme

(TMP) scheme designed to standardise the organisation's succession planning process. It is borne

out of the need to identify, select and set apart human resource talents within the organization

who are capable of driving the organization towards achievement of its medium to long term

strategic objectives.

Identified talents are groomed, trained and given a sense of ownership, in an effort to prepare

them for the future Meristem. They are well-motivated individuals who have demonstrated

enthusiasm and commitment in the achievement of the company's goals; upholding the brand

image and are able to stand out as role models to other members of staff.

The company has three categories of talents, senior leadership, mid-level employees with

leadership potential and entry-level employees with leadership potential.

Candidates for the TMP are selected based on qualitative and quantitative criteria that the

company refers to as the 6Cs: Character, Commitment, Contribution, Consistency, Content and

Competence.

Being selected as a TMP at Meristem comes with privileges such as cash incentives, employee

share ownership scheme, annual overseas training amongst other benefits.

The company lists the benefits it has derived from its TMP to include; stimulating a sense of

ownership in employees and contributing greatly to the achievement of enduring staff retention.

It also aided the following: linkage of business strategy to human capital needs, attraction and

retention of the right people, motivation, recognition, performance rewards, growth of leaders,

development of the organization and creation of a talent culture.


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Kano

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Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara




Basically, HR departments of Nigerian companies deal with the challenge of fresh recruits in the

following ways;

Internal training school for new recruits

Local and international and local collaborations to bring in expert facilitators to train new recruits

Assessment tests to pick quality graduates

Assessment test at the end of training to determine those that can be given permanent job offers

An on-boarding process whereby new recruits are attached to an experienced staff mentor who

serves as guide for the new recruit in his/her first few months on the job.

Some firms have created specific departments that usually require high-quality graduates to pass

through as a recruiting nursery for the whole organisation. All new recruits have to go through

the nursery and are then deployed to other parts of the organisation as the need arises.

In an environment with low-quality manpower, getting top talent to work for an organisations is a

challenge. HR professionals at the BusinessDay HR forum agreed that the top companies with

highly recognisable brands are able to attract top talent into their organisations. The challenge

however remains how to keep them from leaving for competitors locally and internationally, as

most have highly marketable skills.

Some talent management strategies employed by top Nigerian firms include:

Ensuring that remuneration is within 75% of the compensation of top competitors

Employees are allowed to work from home

Employees are given Internet and phone allowance even when working from home

A flexible-leave incentive which allows workers to work for another company for a period of time

except a competitor even while still being paid a fraction of their salaries.

Apparently, HR practitioners are not all gloomy about the future. There is a level of optimism

among HR professionals that the suite of employment skills of Nigerian graduates will improve in

future.

Top Talent management strategies

HR Professionals are optimistic about the future


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Gombe

Imo

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Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara




0 4020 6010 5030 70

Yes

No

Do you see the skill sets of Nigerian graduates improving?

Fifty-eight per cent of HR professionals responding to our survey are optimistic about the future

of quality of manpower in Nigeria while 42% remain pessimistic. HR professionals were not

asked to state reasons for their optimism. The optimism could, however, be as a result of the

increase in private universities, which is seen as potential source of better quality graduates in the

future. Some public universities, especially at the federal level are taking initiatives to respond to

the demands of better quality graduates, albeit gradually. Some universities have adopted a zero-

tolerance stand against academic shutdowns by lecturers over labour disputes resulting in more

time in school for students and longer lecture periods. The National Universities Commission

(NUC) is also clamping down on unaccredited courses at universities while getting more stringent

on accreditation requirements and enforcement.

With a fast-growing Nigerian economy and HR optimism that human capital quality is going to

improve in the future, it is critical to know the qualifications that will be in demand. Our survey

attempted to find out which skills are currently in the most demand.

General business qualifications topped the list with 32% of respondents stating those skills are in

demand. Engineering qualifications ranked next with 26% of those surveyed, while science-based

and accounting-based qualifications tied at third.

University qualifications in demand


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Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara




University qualifications in demand by Nigerian Employers

0 2010 305 2515 35

General Business Qualifications

Accounting Qualifications

Science Based Qualifications

Engineering Qualifications

To get an understanding of the actual qualifications in demand in the Nigerian labour market,

BusinessDay Research and Intelligence Unit (BRIU) obtained data from Jobberman, Nigeria's

premier online recruitment site. BRIU looked at actual job vacancies advertised along different

industries for the period January to November 2012. The data is presented in the bar chart below:

Jobberman Data


25/33

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Kano

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Kwara

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Nasarawa

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OgunOndo

Osun

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Plateau

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Taraba

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Akwa

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Abia

Bauchi

Bayelsa

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Borno

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EbonyiEdo

Ekiti

Gombe

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Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

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Niger

OgunOndo

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Taraba

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Zamfara




University qualifications in demand by Nigerian Employers

As the bar chart above shows, job advertisements from the ICT/Telecommunications sector

topped the list. Consulting jobs came in second. These positions may fall in line with our

respondents' need for general business qualifications. We did not get the data for the actual

positions advertised.

Third on the list was education. Jobs advertised in education are likely to be teaching positions,

whic h ha ve su rg ed in line wi th th e ri se in pr iv at e ed ucat io nal in st itu ti ons.

ICT/Telecommunications jobs are mostly driven by the rise in the use of computers in most

organisations, a fast-growing trend in the Nigerian economy following the surge in mobile phone

and telecom infrastructure penetration in the economy.

0 20001000500 25001500

Broadcasting

Others

Education

ICT / Telecommunications

Consulting

Healthcare

Manufacturing / Production

Banking / Financial Services

FMGG

Oil & Gas / Mining

Trade / Services

NGO

Construction / real Estate

Advertising / Media

Government

Logistics / Transportation

Hospitality Leisure

Food Services

Fashion / Art

Agriculture / Poultry / Fishing

Legal

Travels /Tours

Source: Jobberman/BRIU


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Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

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Sokoto

Taraba

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Zamfara

Abuja

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Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

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EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

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Sokoto

Taraba

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Zamfara




Our survey also sought to find out which certifications are in most demand among the common

professional certifications available in Nigeria. The accounting professional qualifications

provided by the Institute of Chartered Accountants of Nigeria (ICAN) and UK-based ACCA were

picked as the most in demand by the HR professionals surveyed. Twenty-two per cent of HR

professionals surveyed answered that both qualifications were the most in demand. Computer

software certifications were ranked as the third-most demanded in Nigeria.

Professional certifications that are in most demand

0 20105 2515

Professional Certifications in most demand

ACCA

ICAN

CIBN

CIS

Computer Software Certifications

Computer Hardware Certifications

COREN

CFA

Note:

ACCA- Association of Certified Chartered Accountants;

ICAN- Institute of Chartered Accountants offers the...ACA (Associate Chartered Accountant (ACA) certification.

CFA- Chartered Finance Analyst

(CFA) is an internationally-recognised certification in the securities industry.

COREN is the engineering professional body in Nigeria.

CIBN- Chartered Institute of Bankers of Nigeria (CIBN) offers the Associate Chartered Banker certification.

CIS- Chartered Institute of Stockbrokers offers the Associate Chartered Stockbroker certification.


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Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara




We also sought to find out which industries suffer most from lack of quality manpower. The HR

Professionals identified Engineering as the sector with the biggest shortage in Nigeria. The

Power/Electricity sector, ICT/Telecommunications and oil and gas were all ranked as sectors

suffering from a manpower shortage. Not surprisingly, accounting/banking/finance skills were

ranked low in the areas of manpower shortage. Most tertiary institutions in Nigeria

oversubscribed offerings in Accounting/banking/finance fields while the engineering and other

science-based qualifications are hardly fully subscribed.

Industries with most manpower shortage

0 20105 2515

Sectors/Industries with the most manpower shortage

Accounting / Banking /Finance

Engineering

Power / Electricity


Oil /Gas

Sales Business / Development Jobs

Human Resources

Construction

Logistics / Procurement

Qualifications that are expected to be in hot demand in

the next five years


28/33

Abuja

Ana

mbra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara




Still looking into the future our survey, asked HR professionals which qualifications are likely to

be in demand in the next five years in Nigeria.

0 20105 2515

Accounting / Banking /Finance

Engineering


Pure Science

Logistic / Procurement

Oil & Gas

Power / Electricity

Qualifications that are expected to be in hot demand in

the next five years in Nigeria

Engineering skills are expected to be the hottest, most in-demand qualifications in Nigeria over

the next five years. This may not be too surprising since the Nigerian economy has seen an under-

supply of qualifications in this in the last few years. With economic growth rates expected to

remain in the high single digits in the next few years, there will be an increased demand for skilled

engineers craftsmen, technical and senior engineers. The challenge however will remain the

availability of training institutes, especially for technicians due to the poor state of facilities and

low number vocational training centres in the country.


29/33


30/33

Abuja

Ana

mbra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara




Preferred medium of job adverts for new recruits

0 20105 2515

Online Jobsites

Referrals

Electronic Media

Company Websites

Newspapers

Social Media

Medium of job advert for new recruits

30

Online job sites and individual company websites are now the preferred mode of placing job

adverts for new recruits by Nigerian companies, according to 28 of respondents. Company

websties came in next at 21%. Referrals as a means of recruitment was picked by a significant 16%

of HR professionals surveyed.

Case Study

How Jobberman is using Technology to bridge the recruitment gap in Nigeria.

A few years ago, the recruitment process in Nigeria was an arduous, time-consuming manual

process. The Iinternet is a welcome relief when it comes to making recruitment decisions and

choices. Jobberman.com has emerged as one of the fastest-growing online job portals, usingtechnology to meet the needs of recruiters for a fast, efficient and transparent recruitment

process. For job seekers it's an easy to use recruitment portal.


31/33

Abuja

Ana

mbra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara




The Process

For organisations, jobberman.com has simplified the process of finding the right people for

critical positions. Once a company decides it needs new manpower, all it needs to do is fill a job

description and qualifications required form provided on the jobberman.com portal. Staff at

jobberman.com immediately screen and publish the vacancy on the jobberman website which is

immediately seen by the millions of job seekers who visit jobberman.com. Advertising on

jobberman.com is free.Job seekers are also allowed to create their profile on the jobberman portal and upload their CVs.

As soon as a job vacancy is uploaded on the website, all job seekers with uploaded CVs get a

notification or an alert. This means that recruiters can get an almost instant response to their job

advert placements unlike before when they had to wait for days. Recruiters can also edit job

adverts and also have access to the jobberman.com CV database to search for suitable candidates

that match their job profile.

In the age of social media, jobberman.com also syndicate job adverts on Facebook and Twitter and

also by SMS and BBM and on more than 20 top publisher partners' sites.

Using Google Chrome Extension which runs when the Google Chrome browser is in use,candidates can also get a list of recently updated jobs on jobberman.com, without having to go to

the website..

Using technology, jobberman.com has been able to bridge a critical gap in the Nigerian labour

market, reducing the burden of recruiters seeking critical manpower fast and efficiently while also

helping job seekers stay abreast of new opportunities in Nigeria's highly competitive labour

market.

Characteristics of a company classified as a great place to work

Great leadership/management

Adequate compensation Great brand

Most impact on society

Career progression

HR Insight


32/33

Abuja

Ana

mbra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara

Abuja

Anam

bra

Enugu

Akwa

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

CrossRiver

Delta

EbonyiEdo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Lagos

Nasarawa

Niger

OgunOndo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe

Zamfara




Factors that will influence the future of the Nigerian

labour market

With an average economic growth of 6% to 7% in the last decade well above the global average

economic growth rate Nigeria is attracting strong global brands. In the last decade,

international players such as Google, Intel, IBM, JP Morgan, Morgan Stanley, have set up offices

or representative offices in Nigeria. These brands require high quality human capital.

These global brands will satisfy this need by poaching the existing few talents in Nigerian

organisations that cannot offer the higher remuneration usually offered by these strong globalbrands. Where they are not able to recruit locally, they are likely to bring back into the country

Nigerians based abroad. The expectation is that the battle for top talents in the Nigerian labour

market is going to remain intense going forward.

The on-going privatisation in the Nigerian power sector and the expected reforms in the oil and

gas sector will intensify the need for different skills especially in engineering and related fields.

The existing facilities in Nigerian universities to deliver the skills that will be required by these

newly privatised companies is not adequate. A good number of private universities place more

emphasis on training students in general business qualifications than in engineering. This means

that the new electricity companies and oil and gas companies may find it challenging gettinglocally-trained manpower for their needs.

Nigerian education policy makers will have to urgently the address the need to restructure the

educational system, first to equip the 25 million children who drop out of the educational system

with sellable vocational skills and then that those who leave school are appropriately equipped for

the job market. Without the much-needed educational reforms, human capital will remain a drag

on Nigeria's economic potential.


33/33

BusinessDay Research and Intelligence is a unit of BusinessDay Media Limited, specialising in the gathering and analysis of economic and

financial data as well as forward-looking intelligence on Nigeria and West Africa. We have a complete database and valuation of all

Nigerian-listed firms, with the aim of expanding it to include listed companies in West Africa over the next 12 months. We provide in-depth

analysis of different sectors of the Nigerian and West African economy, drawing extensively from our network of industry contacts to

provide insights which are not publicly available. We are committed to the dissemination of reliable, credible, timely and relevant

information to both private and public sector decision-makers.

Contacts:

Anthony Osae-Brown

Editor- BusinessDay Research

Tel: +234-8185193932

[email protected]

Olowa-Peter Dele

Analyst

Tel:234-8055319515

Email:[email protected]

Phillip Okonji

Creative Consultant

Tel: +234-8023042343


Obodo Ejiro

Analyst

Tel: +234-8050745774


Teliat Sule Abiodun

Analyst

Tel: +234-8057000012


The Human Resource Report-Nigeria

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