A Comparison of Reward Systems in Selected Insurance Companies and Banks in Nigeria

This study aimed at finding out how implementable are the reward system variables in Nigerian banks and insurance companies as well as whether these organizations employ the same variables to engage and achieve participation and productivity of employees and sustain the profitability, survival and success of these financial institutions. Relevant literature was reviewed and eight selected reward system variables consisting of extrinsic and intrinsic reward was conceptualized and tested. The probability method of sampling was employed and stratified random sampled technique was used. The study uses questionnaire containing scale and open-ended questions to collect data from one hundred and eighty-eight members of staff within operation, marketing, administrative, finance and .I.T. department of selected banks and insurance companies in Lagos Metropolis. Statistical tools comprising percentages and one-sample T-test were used. Findings showed that these institutions acknowledge reward system practices and as such engage in the implementation of reward system practices in their respective institution. Yet findings proved that a higher percentage of these variables are implemented more effectively in the banking industry than in the insurance industry. This research revealed further that banks' staff are better rewarded than insurance companies' staff. Reasons for this, according to the respondents were difference in capital structure, regulatory framework, profitability level and expertise. This study also revealed that apart from the studied reward system variables, members of staff of these institutions listed other reward system variables implemented in their organizations, such as quarterly award for excellent performance, study leave, training allowance and many more.