IMPACT OF HIGH-PERFORMANCE WORK PRACTICES (HPWPS) ON THE PERFORMANCE OF SELECTED DEPOSIT MONEY BANKS (DMBS) IN FEDERAL CAPITAL TERRITORY, ABUJA

Abstract

This study examined the impact of High-Performance Work Practices (HPWPs) on the performance of Deposit Money Banks (DMBs) in Abuja, Nigeria. It focused on selective hiring, training and development, performance-based compensation, and employee involvement, and their effects on employee productivity, customer satisfaction, profitability, and commitment. A census approach targeted 250 employees across branches of Access Bank, Zenith Bank, GTCO, UBA, and First Bank. To address non-response, 300 questionnaires were distributed, with 273 returned, representing a 91% response rate. Data were collected using structured questionnaires and analyzed using descriptive statistics, correlation, and multiple regression in SPSS 27. Findings showed that all HPWP dimensions had positive and significant effects on performance outcomes. Selective hiring and training enhanced productivity and customer satisfaction, performance-based compensation improved profitability, and employee involvement strengthened commitment. The study concludes that effective HPWP implementation improves both financial and non-financial performance in Nigerian banks. It recommends that banks integrate HPWPs across human resource functions to enhance efficiency, service quality, profitability, and workforce commitment. These findings highlight the strategic importance of aligning human resource practices with organizational goals, suggesting that sustained investment in employee-centered policies can drive competitive advantage, resilience, and long-term growth within the dynamic Nigerian banking sector in practice.