The influence of compensation management on employee’s leadership role in insurance sector: Nigeria experience

Abstract

The huge success of an organisation and its ability to survive competitive pressure from its competitors in a globalised economy depends on the leadership role of the employees. Leadership is the ability to persuade others to ensure the attainment of defined goals/objectives of the organisation with enthusiasm. The current study focuses on the influence of compensation management on employee’s leadership role in insurance sector with evidence from Nigeria. The study used quantitative (questionnaire) approach to gather information from the participants. In all, 250 questionnaires were administered to the employees of an insurance company, 213 returned and 212 (84.4%) were found usable. Ethically, participation in the survey was voluntary and confidentiality of response was of paramount esteem. The study affirmed that there is a positive relationship amongst the variables though the association was not strong which is r= 0.481 (48.1%). That is, there is a correlation between compensation management and employee’s leadership role in the insurance industry in Nigeria. The outcome of the study also reveals that compensation management do have influence on employee’s leadership roles, as well that leadership do motivate employees to perform effectively. Implications of the study for managers in the perspective of HR practices have been enumerated and recommendations offered. Suggestions for future studies are also made.