Compensation Management and Employee Engagement of Insurance Firms in Portharcourt

This study examined the relationship between compensation management and employee engagement in insurance firms in Port Harcourt. Compensation management was conceptualized along two dimensions—monetary and non-monetary rewards while employee engagement was assessed through vigor and dedication. The study was grounded in Vroom’s Expectancy Theory, which asserts that employee motivation is shaped by anticipated rewards and outcomes. The population comprised 200 employees from selected insurance firms in Rivers State, Nigeria. Using the Taro Yamane formula, a sample size of 133 was derived; however, 130 valid questionnaires were analyzed due to attrition. Data were collected באמצעות a structured questionnaire and analyzed using Spearman’s rank-order correlation to determine the relationships between the study variables. The findings indicated that compensation management significantly influences employee engagement, with both monetary and non-monetary rewards contributing positively. Notably, non-monetary compensation demonstrated a stronger effect on engagement than monetary rewards. These results underscore the importance of comprehensive compensation strategies in fostering employee vigor and dedication. Based on the findings, the study recommends that organizations regularly benchmark salaries against industry standards and adjust them in response to inflation and job demands. Firms should also implement transparent and objective criteria for salary increases, bonuses, and incentives. In addition, organizations should prioritize meaningful recognition by promptly and specifically acknowledging employee contributions. Furthermore, investment in career development through training, mentorship, and clearly defined advancement pathways is essential. Supporting lateral career growth and skill development, beyond traditional promotions, can further enhance employee commitment by reinforcing their long-term prospects within the organization.