Why finance professionals stay in underpaid jobs

Despite low salaries, many Nigerian finance professionals choose to remain in their roles due to factors such as job security, work-life balance, and career development opportunities, according to a recent survey by Duplo.

The 2024 ‘Inside the Paycheck’ report reveals that compensation satisfaction remains low within the industry. Approximately 29 percent of respondents reported being moderately dissatisfied with their pay, while 27 percent were very dissatisfied.

Only 3 percent expressed being very satisfied, and 23.7 percent were moderately satisfied. The majority of professionals in Nigeria’s finance sector earn less than ₦500,000 per month, with only 7.2 percent reporting earnings above ₦1 million.

Mid-level professionals, particularly those with 5–10 years of experience, face the greatest dissatisfaction due to stagnant salaries that do not keep pace with inflation that has reached its highest in almost three decades.

The report found that 31.5 percent of respondents in this group were dissatisfied with their compensation. Even those with over 15 years of experience reported low satisfaction, with only 2.8 percent expressing contentment.

While salary dissatisfaction is prominent, professionals are prioritising work-life balance and job stability in the face of Nigeria’s economic challenges. The survey highlights that finance professionals are weighing the benefits of work-life balance equally with base salary, especially given the emotional toll of economic instability.

Ultimately, the choice to stay in underpaid roles is influenced by long-term career goals and the perceived security of their positions.

Read also: Inflation outpaces salary rise in banks amid record earnings

According to Duplo, here are five reasons why Nigerian finance professionals stay in underpaid jobs

1. Job Security (41.8%)

Job security stands as the most important factor for finance professionals staying in roles with low pay. In an economy where the job market can be unpredictable, having a stable position offers peace of mind. Many finance professionals value the certainty that their jobs provide, especially when other opportunities might not guarantee the same level of stability. The fear of unemployment can outweigh the desire for higher pay, particularly in industries where competition for positions is fierce.

2. Work-Life Balance (40.2%)

The balance between work and personal life is a key factor for Nigerian finance professionals. A demanding job that takes up personal time can lead to stress and burnout. In some instances, professionals find that roles with lower pay offer more flexibility, allowing them to manage their work alongside family and personal commitments. The ability to maintain a healthy work-life balance often makes up for the lack of financial compensation.

3. Career Development Opportunities (31.7%)

Opportunities for growth and development are another reason why finance professionals may choose to stay in jobs with lower pay. Many professionals are willing to accept less pay in exchange for learning new skills, gaining experience, or moving towards long-term career goals. For those who view their current roles as stepping stones to future opportunities, the experience gained outweighs the immediate financial benefits. Companies that offer clear paths for advancement often keep professionals loyal to their roles.

4. Company Culture (25.3%)

The culture within a company can play a significant role in job satisfaction, even when salaries are not high. Finance professionals who work in a supportive and collaborative environment are more likely to stay, as the sense of belonging and fulfillment is often more important than the paycheck. A positive company culture where employees feel valued can outweigh financial compensation, especially in environments where teamwork and recognition are prioritised.

5. Base Salary (24.8%)

Finally, while salary is important, it ranks fifth among the reasons Nigerian finance professionals stay in jobs that don’t pay well. Although professionals recognise that better-paying opportunities exist, they often find that the other benefits—such as job security, work-life balance, and career development—are more significant. In many cases, professionals are willing to accept a lower salary if the other aspects of the job meet their needs.