COMPENSATION MANAGEMENT AND EMPLOYEES’ MOTIVATION IN THE INSURANCE SECTOR: EVIDENCE FROM NIGERIA

Abstract

Reimbursement has been one of the frameworks adopted in organisations to attract, hire and keep competent employees that will strategically key in to the firm’s vision, task and goals. Retaining skillful employees in officialdom is imperative for the progress and enrichment of general operation of a firm. Staff that is well motivated will strive to ensure that competitive advantage goal of the organisation is sustained and achieved over their competitors. The aim of this paper is to explore the association between compensation management and employees’ motivation in the insurance sector of Nigeria. This study employed a non-experimental design using questionnaires as a measuring instrument to gather information. There were 250 questionnaires administered, 213 collected while 212 (84.4%) thereof were found to be usable. By employing the Pearson product moment correlation coefficient, it was discovered that association exists between reward administration and workers’ motivation but a weak one. It was revealed that in Nigeria insurance industry, compensation management bears a minimal influence on the enthusiasm of workers’. It is hence recommended that remuneration package of employees’ in the insurance industry in Nigeria should be given priority by carrying out periodic review of the salary and making it at par with other industries in the financial sector of Nigeria.