Reward System Dimensions and Employee Civic Virtue of Selected Insurance Firms in Lagos State, Nigeria

Abstract

Employee civic virtue is critical to favourable organisational outcomes. This necessary attribute of employees in the workplace can be spurred by the implementation of effective and efficient reward system. However, literature on reward system had often been focused on its effect on organisational productivity with limited emphasis on employee civic virtue. Moreover, it had been noted that the application of reward system in the insurance sub-sector in Lagos state has not been effective as expected. The subsector has been markedly characterised by poor remuneration, inadequate welfare packages, poor career advancement and low job security. The employee civic virtue is also low. Hence, this paper assessed the effect of reward system dimensions on employee civic virtue of the insurance firms in Lagos state Nigeria.Cross sectional survey research design was adopted for the study. The population of this study comprised non-management employees of the selected insurance firms (Lasaco Assurance Plc, Staco insurance Plc and Goldlink insurance Plc) located in Lagos state. These firms were selected on the basis of being the top three firms in the industry. The population was 519 employees using total enumeration and simple random sampling technique.The study used a validatedquestionnaire whose construct'Cronbach's alpha reliability coefficients ranged from 0.718 and 0.910. Data were analysed using descriptive and inferential statistics. The result of the multiple regression analysis reveals that reward system dimensions have a positive and significant effect on employee civic virtue(Adj. R² = 0.069, F(4, 415)= 8.756, p = 0.000).The study concluded that reward system dimensions affect employee civic virtue of insurance firms in Lagos state, Nigeria. The study therefore, recommends that the management of insurance firms should make policies that will promote effective and efficient reward system in the insurance firms to facilitate employee civic virtue in the interest of their organisational performance.