Compensation Management and Employee Commitment in Selected Banks in Lagos State

Abstract

In the global world of today, for any organization such as banks to have competitive edge amidst her competitors, there must be in place a formidable compensation strategy to retain, attract, and motivate people to join the organisation. The ability of bank managers to achieve the bank corporate objectives to a large extent depends on the effective implementation of compensational packages in order to retain and motivate employees within and beyond their expectation. This study is on compensation management and employee commitment in selected deposit money banks in Lagos State, Nigeria. The problem of this research is that many Nigerian banks has failed to ensure the commitment of staff because they do not manage compensations adequately and as at when due. The objective of this study is basically to determine the effect of compensation management on employee commitment in selected deposit money banks in Lagos State. The research adopted survey research design. The population of study was 1100 and a sample of 600 was derived using Taro Yamane ‘s formula and this constitutes employees of selected three banks in Lagos State. Regression analysis test statistic at P-value of 0.05 level of significance was used in testing the hypothesis. The findings shohttps://www.eajournals.org/wp-content/uploads/Compensation-Management.pdfw that compensation management positively influences employee’s commitment in the selected deposit money banks in Lagos State. The study recommended that the management of selected deposit money banks should work on improving employees’ salaries, commissions and other direct compensations.