COMPENSATION MANAGEMENT AND EMPLOYEE JOB SATISFACTION OF SELECTED INSURANCE COMPANIES IN LAGOS STATE, NIGERIA

Employee job satisfaction is worker?s sense of achievement and success on the job. This has generally been perceived to be directly linked to compensation as well as to personal well-being.Different authors in literature have reported mixed approaches and outcomes about how compensation management affected employee job satisfaction. In Nigerian insurance industry, employee job satisfaction is perceived to be low probably due to inadequate compensation plan of the firms.The paper therefore investigated the effect of compensation management (Employee safety, incentives, work dignity, and salary increase) on employee job satisfaction (Recognition, performance related pay and working condition) of selected insurance companies in Lagos State, Nigeria. Survey research method was adopted. The population of study was 1527 made up of employees in 8 selected insurance companies from which sample of 560 were selected using stratified sampling technique. The paper used questionnaire as research instrument validated through face and contents validity tests with Cronbach?s Alpha reliability coefficients ranged from 0.62 to 0.84 for various constructs of the paper. Data were analysed using both descriptive and inferential (simple regression) statistics. The results revealed that compensation management have positive significant effect on employee job satisfaction β = 0.661, t (501) = 17.538, R2 = 0 .379, P (<0.05). The study concluded that compensation management is important determinant of the satisfaction employees derive from their job. Therefore, recommended that government should enact laws and regulations that could mediate between the employers and employees of insurance industry whenever there is issue of breach of contract. The management of insurance industry should have better compensation systems in place because it has a very positive impact on their employees ?satisfaction. Besides, such employees are less likely to leave the organisation.