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.
Keywords
Full Text:
PDFReferences
Adams, J.S. (1963). Toward an understanding of inequity. Journal of Abnormal and Social Psychology, 67, 422-436.
Adeoye, A.O. (2001). Contemporary issues in human resources management and organisational behaviour. Lagos: Pumark Publishers.
Adeoye, A.O. (2014). An assessment of compensation management and motivation on organisational performance in the Insurance Industry in Nigeria. An Unpublished Doctoral Dissertation, University of KwaZulu-Natal, Durban, South Africa.
Adeoye, A.O. & Fields, Z. (2014). Compensation management and employee job satisfaction: a case of Nigeria. India Journal of Social Sciences, 41 (3), 345-352.
Aguinis, H., Joo, H. & Gottfredson, R.K. (2013). What monetary rewards can and cannot do: how to show employees the money. Business Horizon, 56, 241-249. http://dx.doi.org/10.1016/j.bushor.2012.11.007
Agwu, M.O. (2013). Impact of fair reward system on employee’s job performance in Nigerian Agip Oil Company Limited, Port Harcourt. British Journal of Education, Society and Behavioural Science, 3 (1), 47-64.
Ahlstrom, D. & Bruton, G.D. (2010). International management: Strategy and culture in the emerging world. Hampshire: South-Western, Cengage Learning, EMEA.
Ali, N.A.M. & Panatik, S.A. (2015). Work values and job satisfaction among academician in public and private university. Jurnal Kemanusiaan, 24 (2), 43-58.
Altindis, S. (2011). Job motivation and organisational commitment among the health professionals: a questionnaire survey. African Journal of Business Management, 5 (21), 8601-8609. http://dx.doi.org/10.5897/AJBM11.1086
Al-Shaiba, A.S. & Koҫ, M. (2017). Role of human resources function in successful organizational transformations for efficiency improvement. European Journal of Multidisciplinary Studies, 2 (7), 273-280.
Armstrong, M. (2003). A handbook of human resource management practice. 9th edition. Aberystwyth: Cambrian Printers.
Asika, N. (2008). Research methodology: Process approach. Lagos: Mukugamu Brothers.
Baruch, Y. & Hotlom, B.C. (2008). Survey response rate levels and trends in organisational research. Human Relations,61,1139-1160. http://dx.doi.org/10.1177/0018726708094863
Brislin, R.W., Kabgting, F., Macnab, B., Zukies, B. & Worthley, R. (2005). Evolving perceptions of Japanese workplace motivation. International Journal of Cross Cultural Management, 5 (1), 87-103. http://dx.doi.org/10.1177/1470595805050829
Brown, M. (2001). Unequal pay, unequal responses? Pay referents and their implications for pay level satisfaction. Journal of Management Studies, 38 (6), 879-896. http://dx.doi.org/10.1111/1467-6486.00263
Byron, K. (2005). A meta-analytic review of work-family conflicts and its antecedents. Journal of Vocational Behaviour, 67 (2), 169-198. http://dx.doi.org/10.1016/j.jvb.2004.08.009
Calder, B.J. & Staw, B.M. (1975). The self-perception of intrinsic and extrinsic motivation. Journal of Personnel and Social Psychology, 31, 599-605.
Chartered Institute of Personnel and Development, (2005). Reward Management. Survey report. London: CIPD.
Chartered Institute of Personnel and Development, (2006). International reward and recognition guide. London: CIPD.
Chiu, R.K., Luk, V.W. & Tang, T.L. (2002). Retaining and motivating employees: compensation preferences in Hong Kong and China, Personnel Review, 31 (4), 402-431. http://dx.doi.org/10.1108/00483480210430346
Danish, R.Q. & Usman, A. (2010). Impact of reward and recognition on job satisfaction and motivation: An empirical study from Pakistan. International Journal of Business and Management, 5 (2), 159-167.
Darma, P.S. & Supriyanto A.S. (2017). The effect of compensation on satisfaction and employees performance. Management and Economic Journal, 1 (1), 69-78. http://dx.doi.org/10.18860/mecj.v1.1.4524
Dessler, G. (2008). Human resource management. Upper Saddle River: Prentice Hall.
Egan, M., Yang, B. & Bartlett, K.R. (2004). The effects of organisational learning culture and job satisfaction on motivation to transfer learning and turnover intention. Human Resources Development Quarterly, 15 (3), 279-300. http://dx.do.org/10.1002/hrdq.1104
Gagne, M. & Deci, E.L. (2005). Self-determination theory and work motivation. Journal of Organisational Behaviour, 26 (4), 331-362. http://dx.doi.org/10.1002/job.322
George, D. & Mallery, P. (2003). SPSS for Windows step by step: A simple guide and reference. 11.0 update 4th edition. Boston: Allyn & Bacon.
Hackett, T.J. & McDermott, D.G. (1999). Integrating Compensation Strategies: A holistic approach to compensation design. Compensation and Benefit Review, 31 (5), 36-43. http://dx.doi.org/10.1177/088636879903100506
Heinemann, R.L. (2002). Strategic Reward Management: Design, Implementation, and Evaluation. Greenwich, CT: Information Age Publishers.
Heneman III, H.G., Judge, T.A. & Heinemann, R.L. (2000). Staffing organisations. New York: McGraw Hill/Irwin.
Herpen, M.V., Praag, M.V. & Cools, K. (2005). The effects of performance measurement and compensation on motivation: an empirical study. De Economica, 153 (3), 303-329. http://dx.doi.org/10.1007/s10645-005-1990-z
Herzberg, F. (1966). Work and the nature of man. Cleveland: World Publishing Company.
Herzberg, F., Mausner, B. & Snyderman, B. (1959). The motivation to work. New York: Wiley.
Hyondong, K. (2006). Strategic impacts of compensation system on organisational outcomes: An empirical study of the conceptualisations of fit and flexibility in the compensation design. (Unpublished doctoral dissertation). Graduate School of the Ohio State University, USA.
Idris, M.H., Hamzah, D., Sudirman, I. & Hamid, N. (2017). The relevance of financial and non-financial compensation on professionalism and lecturers performance: Evidence from Makassar Private Universities (Indonesia). Journal of Asian Development, 3 (2), 162-180.
Ivancevich, J.M. (2004). Human resource management. 9th edition. New York: McGraw Hill
James, P. & Kim, I. (2018). CEO compensation in the U.S.: Are CEOs underpaid or overpaid? Accounting and Finance Research, 7 (3), 78-101. http://dx.doi.org/10.5430/afr,v7n3p78
Johnson, C.R. (2005). Employee motivation: A comparison of tipped and non-tipped hourly restaurant employees. (Unpublished Masters dissertation). Rosen College of Hospitality Management, University of Central Florida, Orlando, Florida, USA.
Kalshoven, K. & Boon, C.T. (2015). Ethical leadership, employee well-being, and helping: the moderating role of human resource management. Journal of Personnel Psychology, 11 (1), 60-68.
Kelly, P. (2009). International business and management. Hampshire: South-Western, Cengage Learning, EMEA.
Kersley, B.A. & Forth, J. (2005). Inside the workplace: First findings from 2004 Workplace Employment Relations Survey (WERS 2004). London: Economic and Social Research Council.
Khan, R.I., Aslam, H.D. & Lodhi, I. (2011). Compensation management: A strategic conduit towards achieving employee retention and job satisfaction in banking sector of Pakistan. International Journal of Human Resource Studies, 1 (1), 89-97.
Khoreva, V. (2012). Gender inequality, gender pay gap, and pay inequity: perceptions and reactions in Finnish society and workplace,’’ Unpublished Doctoral Dissertation, Hanken School of Economics, Department of Management and Organisation.
Kreitner, R. & Kinicki, A. (1998). Organisational behaviour. 4th edition. New York: McGraw Hill/Irwin.
Kumar, D., Hossain, M.Z. & Nasrin, M.S. (2015). Impact of non-financial rewards on employee motivation. Asian Accounting and Auditing Advancement, 5 (1), 18 -25.
Kuranchie-Mensah, E.B. & Amponsah-Tawiah, K. (2016). Employee motivation and work performance: A comparative study of mining companies in Ghana. Journal of Industrial Engineering and Management, 9 (2), 255-309. http://dx.doi.org/10.3926/jiem.1530
Leete, L. (2000). Wage equity and employees motivation in non-profit and for-profit organisations. Journal of Economic Behaviour and Organisations, 43 (4), 423-446. http://dx.doi.org/10.1016/S0167-2681(00)00129-3
Lin, H.F. (2007). Effects of extrinsic and intrinsic motivation on employee knowledge sharing intentions. Journal of Information Sciences, 33 (2), 135-149. http://dx.doi.org/10.1177/0165551506068174
Mabaso, C.M. & Dlamini, B.I. (2017). Impact of compensation and benefits on job satisfaction. Research Journal of Business and Management, 11 (2), 80-90. http://dx.doi.org/10.3923/rjbm.2017.80.90
Mahaney, C.R. & Lederer, A.L. (2006). The effect of intrinsic and extrinsic rewards for developers on information systems project success. Production Management Journal, 37 (4), 42-54.
Mann, P.S. & Lacke, C.J. (2010). Introductory statistics. 7th edn. USA: John Wiley & Sons, Inc.
Mardiyanti, O.A., Utami, H.N. & Prasetya, A. (2018). The effect of financial compensation and non-financial compensation on employees’ performance through job satisfaction as an intervening variable: Study on permanent employees’ of PT Citra Perdana Kendedes in Malang, East Java. Jurnal Administrasi Bisnis, 62 (1), 135-144.
Mawoli, M.A. & Babandako, A.Y. (2011). An evaluation of staff motivation, dissatisfaction and job performance in an academic setting,’’ Australian Journal of Business and Management Resources, 1 (9), 1-13.
Maynard, D.C., Joseph, T.A. & Maynard, A.M. (2006). Underemployment, job attitudes and turnover intentions. Journal of Organisational Behaviour, 27 (4), 509-536. http://dx.doi.org/10.1002/job.389
Mckee-Ryan, F.M. & Harvey, J. (2011). I have a job, but----- A review of underemployment. Journal of Management, 37 (4), 962-996.
Meta, M., Alib, I. & Alic, J. (2015). Do monetary reward and job satisfaction influence employee performance: evidence from Malaysia. Journal of Business and Social Sciences, 3 (11), 184-200.
Mitchell, T.R. (1982). Motivation: New direction for theory, research, and practice. Academy of Management Review, 7 (1), 80-88.
Milkovich, G.T. & Newman, JM. (1999), Compensation. 6th edition. New York: McGraw Hill.
Mottaz, J.C. (1985). The relative importance of intrinsic and extrinsic rewards as determinants of work satisfaction,’’ The Sociological Quarterly, 26 (3), 365-385. http://dx.doi.org/10.1111/j.1533-8525-1985.tb00233.x
Muijs, D. (2011). Doing quantitative research in education with SPSS. 2nd edition. London: Sage Publications.
Mujataba, B. & Shuaib, S. (2010). An equitable total rewards approach to pay for performance management.’ Journal of Management Policy and Practice, 11 (4), 111-121.
Nazim-ud-Din, M. (2013). HR practices in insurance companies: A case study of Bangladesh. Abasyn Journal of Social Sciences, l6 (2), 77-90.
Nell, I.A. (2015). Preaching from the pews: a case study in vulnerable theological leadership. Verbum et Ecclesia 36 (1), Art #1376, 9 pages. http://dx.doi.org/10.4102/ve.v36i/o1376. (Accessed 5 May 2016).
Nickels, W.G., McHugh, J.M. & McHugh, S.M. (1999), Understanding business. 5th edition. New York: McGraw Hill/Irwin.
Nzyoka, C.M. & Orwa, B.H. (2016). The relationship between total compensation and employee performance in the insurance industry: Case of Mayfair Insurance Company Limited. Psychology and Behavioral Sciences, 5 (1), 20-36. http://dx.doi.org/10.11648/j.pbs.20160501.14
Nikonova, O.V., Uspenskaya, T.N., Nazarova, U.A. & Voikina, E.A. (2018). Features of remuneration of workers of social protection organizations in the Russian Federation: By the example of the City of Moscow. The Turkish Online Journal of Design Art and Communication. TOJDAC, September Special Edition; 2086-2093. http://dx.doi.org/10.7456/1080SSE/280
Oburu, L.N. & Atambo, W.N. (2016). The effect of compensation on employee performance of micro-finance institutions: A case of Wakenya Pamoja Sacco, Kisii County, Kenya. Imperial Journal of Interdisciplinary Research, 2 (6), 103-126.
Olusadum, N.J. & Anulika, N.T. (2018). Impact of motivation on employee performance: A study of Alvan Ikoku Federal College of Education. Journal of Management and Strategy, 9 (1), 53-65. http://dx.doi.org/10.5430/jms.v9n1p53
Osterloh, M. (2005). Human resources management and knowledge creation. Forthcoming in: I. Nonaka, & K. Ichijo (Eds.): Handbook of Knowledge Creation, Oxford University Press.
Osterloh, M. & Frey, B.S. (2000). Motivation, knowledge transfer, and organisation forms. Organisational Science, 11 (5), 538-550. http://dx.doi.org/10.1287/orsc.11.5.538.15204
Osterloh, M., Frost, J. & Frey, B.S. (2002). The dynamics of motivation in new organisational forms. International Journal of Economy of Business, 9 (1), 61-77. http://dx.doi.org/10.1080/13571510110102976
Pallant, J. (2011). SPSS survival manual: step-by-step guide to data analysis using SPSS. 4th edn. Australia: Allen & Unwin.
Parke, C.A. (2013). Essential first steps to data analysis: Scenario-based examples using SPSS. Los Angeles: SAGE.
Pepra-Mensah, J., Adjei, L.N. & Agyei, A. (2017). Effect of compensation on basic school teachers’ job satisfaction in the northern zone: The case of Ghana. Global Journal of Management and Business Research, G. Interdisciplinary, 17 (3), 50-59.
Purcell, J., Kinnie, N. & Hutchinson, S. (2003). Understanding the people and performance link: Unlocking the black box. London: Chartered Institute of Personnel and Development.
Ramlall, S. (2004). A review of employee motivation theories and their implications for employee retention within organisations. Journal America Academy of Business, Cambridge, 5 (1&2), 52-63.
Resurrection, P.F. (2012). Performance management and compensation as drivers of organisational competitiveness: The Philippine perspective. International Journal of Business and Social Sciences, 3 (21), 20-30.
Rotea, C.S., Logofatu, M. & Ploscaru, C.C. (2018). Quantitative model for assessing the impact of reward system elements on hospital efficiency. International Journal of Academic Research in Business and Social Sciences, 8 (8), 231-241. http://dx.doi.org/10.6007/IJARBSS/v8-18/4461
Rynes, S.L., Gerhart, B. & Minette, K.A. (2004). The importance of pay in employees’ motivation: Discrepancies between what people say and what they do. Human Resource Management, 43 (4), 381-394. http://dx.doi.org/10.1002/hrm.20031
Saunders, M.N., Lewis, P. & Thornhill, A. (2013). Research methods for business students. 5th edition. London: Pearson Education.
Seiler, S., Lent, B., Pinkowska, M. & Pinazza, M. (2012). An integrated model of factors influencing project managers’ motivation-findings from a Swiss survey. International Journal of Production Management, 30 (1), 60-72.
Serhan, C., Achy, E.A. & Nicolas, E. (2018). Public sector employees’ motivation: Causes and effects. People: International Journal of Social Sciences, 4 (2), 49-55. http://dx.doi.org/10.20319/pijss.2018.42.4955
Solomon, O., Hashim, H.N., Mehdi, Z.T. & Ajagbe, A.M. (2012). Employee motivation and organisational performance in Multinational Companies: A study of Cadbury Nigeria Plc. International Journal of Resources in Management and Technology, 2 (3), 303-312.
Swartz, G.E. (2006). Safety in the supervisor’s salary review. Professional Safety, Sept, 54-58.
Sweeney, P.D. (1990). Distributive justice and pay satisfaction: A field test of an equity theory prediction. Journal of Business and Psychology, 4 (3), 329-341.
Tang, T.L. & Chiu, R.K. (2004). Income, money ethic, pay satisfaction, commitment, and unethical behaviour: Is the love of money root of all evil for Hong Kong employees?, Journal of Business Ethics, 46, 13-30.
Tang, T.L., Luna-Arocas, R., Sutarso, T. & Tang, D.S. (2004). Does the love of money moderate and mediate the income-pay satisfaction relationship?. Journal of Managerial Psychology, 19 (2), 111-135. http://dx.doi.org/10.1108/02683940410526091
Terre Blanche, M., Durrheim, K. & Painter, D. (2006). Research in practice: Applied methods for the Social Sciences. Cape Town: University of Cape Town Press.
Tsai, C. (2005). Reward Incentive Compensation and Organisational Performance: Evidence from the semi-conductor industry. Performance and Reward Conference, Manchester U.K., April
Uwizeye, H. & Muryungi, P. (2017). Influence of compensation practices on employee performance of tea companies in Rwanda: A case study of Rwanda Mountain Tea. European Journal of Business and Social Sciences, 6 (6), 160-167.
Van der Merwe, S.P. (2009). Determinants of family employee work performance and compensation in family business. South African Journal of Business Management, 40 (1), 51-63.
Walker, C.O., Greene, B.A. & Mansell, R.A. (2006). Identification with academics, intrinsic/extrinsic motivation, and self-efficacy as predictors of cognitive engagement. Leadership and Individual Differences, 16 (1), 1-12. http://dx.doi.org/10.1016/j.lindif.2005.06.004
Whitehead, O. & Phippen, A. (2015). An investigation into the ideas and effects of zero-hour contracts within the United Kingdom. Journal of Research Studies in Business and Management, 1 (1), 189-209.
Willis-Shattuck, M., Bidwell, P., Thomas, S., Wyness, L., Blaauw, D. & Ditlopo, P. (2008). Motivation and retention of health workers in developing countries: A systematic review. BMC Health Service Resources, 8, 247.
Woźniak, J. (2017). Some factors hindering acceptance of three gamification solutions in motivation systems in small and medium enterprises. Management Dynamics in the Knowledge Economy, 5 (4), 663-680. http://dx.doi.org/10.25019/MDKE/5.4.11
Yao, Y.H., Locke, E.A. & Jamal, M. (2018). On a combined theory of pay level satisfaction. Journal of Organizational Behavior, 39 (4), 448-461. http://dx.doi.org/10.1002/job.2243
DOI: https://doi.org/10.22190/FUEO1901031A
Refbacks
- There are currently no refbacks.
© University of Niš, Serbia
Creative Commons License CC BY-NC-ND
ISSN 0354-4699 (Print)
ISSN 2406-050X (Online)