Talent Retention Strategies, Psychological Contract Fulfilment, and Organisational Commitment: An Empirical Study in the Nigerian Banking Sector

This research empirically examines the mediating role of psychological contract fulfilment in the relationship between talent retention strategies and organisational commitment in the Nigerian banking sector, with data collected from staff in Lagos and Abuja. Despite significant investment in retention programmes, Nigerian banks continue to experience high voluntary turnover among high-performing employees, pointing to gaps between intended and perceived retention effects. A cross-sectional survey design was employed, with 220 banking professionals as respondents. Structural equation modelling was used for hypothesis testing. The study identifies and tests four talent retention dimensions: compensation competitiveness, career growth opportunities, recognition programmes, and work environment quality. Findings reveal that psychological contract fulfilment fully mediates the relationship between career growth opportunities and organisational commitment, while partially mediating the paths from compensation competitiveness and work environment quality to commitment. Recognition programmes showed direct rather than mediated commitment effects, suggesting they operate through perceived appreciation rather than contractual expectation mechanisms. These findings extend psychological contract theory into the Nigerian banking context, providing nuanced understanding of the retention-commitment mechanism. The study recommends that banks invest in transparent career development communication, ensure that stated retention commitments are consistently delivered, and deploy structured fulfilment audits to identify psychological contract breaches early. Keywords: talent retention, psychological contract, organisational commitment, banking sector, Nigeria.