https://nairametrics.com/2022/08/02/mass-resignation-rocks-nigerian-companies-as-japa-for-better-life-spirals-out-of-control/ https://africa.businessinsider.com/local/lifestyle/japa-thousands-of-nigerians-are-leaving-the-country-and-many-more-plan-to-quit-jobs/s67pssr The effects of brain drain on the Nigerian economy
While Nigeria has an incredibly creative, motivated, and resourceful young population, a continuous emigration of professionals is thought to impede its long-term economic growth. Each year, millions of highly qualified medical doctors, engineers and bankers are said to move abroad, the most visible effect being an overall loss of skilled human resources.
Despite this, many experts believe that the export of human resources has inadvertently “become a money-making machine for underdeveloped countries. This is particularly the case with remittances, which have always been the much-needed financial lifeline to low-income countries in Africa.
Last year, remittance inflows to Sub-Saharan African countries rose by 14.1 per cent to $49 billion, according to World Bank. Over the years, Nigeria has received the largest portion of total remittance inflows into Sub-Saharan Africa, and this is due to the significantly sizable diaspora base.
The effect of brain drain on the Nigerian Job market
While a brain drain is beneficial, the mass resignation of skilled labour forces across the country for greener pasture abroad is threatening the development of society and the country as a whole.
According to the survey of HR operators conducted by Nairametrics, the sales and marketing department of many Nigerian companies recorded the highest number of resignations in July, followed by employees in the core operations section of the business.
Another survey conducted by LEADERSHIP NG found that the resignation has affected the banking industry the most, such that it came up as an issue for discussion at the Bankers’ Committee meeting held in April this year.
Below are the findings from the report by LEADERSHIP NG:
It was learnt that about 500 software engineers have, since the beginning of this year, till now, secured better offers abroad, majorly in Canada and European countries where the emolument far outweighs what they are being paid in the Nigerian banking sector as they are paid in foreign currency at a time the nation’s Naira has seriously depreciated
Aside from these 500 engineers, about 1,000 other staff have so far resigned their appointments in deposit money banks to pick up juicy offers abroad, even as there are indications that more engineers and bank staff will also join them in the months ahead as the nation’s economy becomes harsher and the operating environment becomes unbearable.
“For the Information and Communication sector, the story is not so different as many tech developers are either leaving Nigeria in search of ICT job that pays better or working remotely.”
Way forward
The World Economic Forum (WEF) has advised companies to tailor their workforce strategy to the unique needs of their workers” if they are to succeed in today’s challenging environments.
According to a report by Harvard Business Review, Employers need to recognise that it takes significantly longer to recruit someone than it does for them to give their two-week notice and depart. The solution, then, is to bolster retention while ramping up recruiting immediately. To do so, companies need to get on the same page with employees by reconceptualizing what it means to be part of their organization.
The government should also focus on adopting policies that promote circular and return migration, like policies that would welcome professionals to return home after the completion of their training or studies.
Mass resignation rocks Nigerian companies as “Japa” for better life spirals out of control
Nigerian companies are set to lose a huge number of their staff in August and September due to mass resignations as foreign schools resume academic activities in September 2022. This is according to findings by Nairalytics from Human Resource managers across the country.
We are currently heading into a month where most foreign schools in the likes of the USA, Canada, Uk, and Australia are resuming academic activities, and with many Nigerian youths pushing to leave the country by applying for study visas, companies will be dealing with a number of vacant positions come August.
The concept of “The Great Resignation,” also known as Big Quit or Great Reshuffle, which became popular in 2021, when employees voluntarily resigned from their jobs in mass is already playing out in Africa’s biggest economy as HR managers revealed that they have processed a number of resignations in the past one month, most of which are due to traveling out.
What Human resource managers are saying
In various discussions with human resource managers, the following comments were made concerning resignations in their companies in the past one month. According to the survey of HR operators, the sales and marketing department recorded the highest number of resignations in the month of July, followed by employees in the core operations section of the business.
According to HR in a company operating in the oil and gas industry, four employees resigned from their organization in the month of July, all of which are traveling abroad either as a result of foreign offers or on education visas.
He said, “So my present industry is oil and gas, 4 employees have resigned in the month of July, while in my previous organization which is a manufacturing firm (I left 3 months ago) they have had 15 resignations this month and still counting.”
Another stated that “two people in my office have resigned because they are relocating out of the country.” Also, a company operating in the Fast Moving Consumer Goods (FMCG) industry revealed that 30 people resigned in July, many of which cited relocating abroad as their reason for resignation.
In a conversation with a Human Resource person at an IT firm, she explained that she has only been working in the firm for one month and have had to process about 10 resignations within the period.
“In the last one month of being here, I’ve done like 10 exit interviews and that’s within a particular 2 or 3 departments in the company,” she said.
“We are a team of 30 currently and we’ve had 2 resignations till now, both of them are japaing,” those were the words of an HR from a logistic tech company.
While the comment above is not exhaustive, the number of resignations recorded by the interviewed companies across various sectors of the economy, varied. Some of them had to process ten resignations in July, others five, another stated 12, while a manufacturing company has processed 32 resignations in just one month.
Several other human resource managers of large Nigerian companies particularly in the utility sector who spoke to Nairametrics also complain of a massive wave of resignations. For some of them who prefer to remain anonymous as they fear revealing the name of their organization could affect their ability to attract more talent, they opine even an increase in salaries or better working conditions did not stop their best talents from resigning.
“We have even seen senior managers and other top executives resign and travel with their families” an HR expert with a major utility informs Nairametrics. “These days they take all sorts of project management exams and often work late to remain focussed on their studies. In fact, an easy way to know who will japa is when they start telling you they have exams to write”.
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It isn't easy
Companies are faced with increased cost of raw materials/machinery importation, production of goods with the risks in logistics as well as exploitation by unfaithful staffs
Meanwhile the cost of living in the city is becoming unbearable for many alongside salary earners (60,000 - 400,000NGN/Mnth) whereby house rent starts at 180,000-800,000/Annum depending on the location n distance from workplace, coupled with feeding at 40,000-700,000/Mnth for most families.
Added to the list is children educational and social expenses as well as other unprecedented events to include health, taxes.. |
