TECHNOLOGY READINESS, DATA QUALITY AND EMPLOYEE RETENTION IN SELECTED MICROFINANCE BANKS IN KWARA STATE

Abstract

Employee retention remains a persistent challenge in many financial institutions, particularly microfinance banks where operational stability and customer relationships depend heavily on experienced employees. Despite the increasing adoption of digital technologies in human resource management, many microfinance institutions still experience high employee turnover. One major concern is the limited technological readiness of these organisations, which constrains the effective use of human resource analytics for workforce decision-making. This study examined the influence of technological readiness on employee retention within the context of human resource analytics in selected microfinance banks in Kwara State, Nigeria. Specifically, the study investigated the effects of technological readiness and data quality on employee retention. A quantitative research design was adopted using a cross-sectional survey approach. Data were collected from employees of fifteen microfinance banks in Ilorin, Kwara State. From a population of 354 staff members, a sample of 184 respondents was selected using simple random sampling. Structured questionnaires were used to collect primary data, and multiple regression analysis was employed for data analysis. The results revealed that technological readiness has a significant positive effect on employee retention (β = 0.283, p < 0.001), while data quality also significantly influences employee retention (β = 0.321, p < 0.001). The regression model indicated a moderate relationship (R = 0.612) with an explanatory power of R² = 0.375, showing that the independent variables account for 37.5% of the variation in employee retention. The study concludes that improving technological readiness and maintaining high-quality organisational data are essential for strengthening employee retention in microfinance banks.