Influence of Effective Communication and Compensation Management on Employees' Engagement in Some Selected Financial Institutions in Lagos State, Nigeria

Abstract

This study investigated the influence of effective communication and compensation management on employees' engagement in some selected financial institutions in Lagos State, Nigeria. Employee Engagement is an important business approach for organisational success because high level of employee engagement in both private and public sector improve employees' performance and organisational productivity. The survey research design method was adopted for the study and a total of 150 respondents were selected using random sampling techniques. Data were collected through the use of Gallup Q12 Employee Engagement Scale developed by Gallup (2013), effective communication scale adopted from the Institute for Employment Studies (IES) in Dilys, Sarah, and Sue, (2003) and Employee Satisfaction Scale in Crossley, Bennett, Jex, & Burnfield, (2007) to measure compensation management. The data collected were analyzed using statistical packages for social sciences (SPSS) which include descriptive analysis of demographic information using pie chart and simple percentage. Linear regression analysis and Pearson correlation were used to test the three hypotheses that were generated for the study at 0.01 alpha levels of significance. The study concluded that effective communication and compensation management have significant positive effect on employees' engagement. Moreover, the findings also revealed that employees' engagement is significantly related to organisational performance. Based on the findings of this study, it was recommended that organisations should increase employee engagement by going beyond downward communication and making sure that people are not just treated as employees; instead they should be treated as valued employees.