Effect of Compensation Strategies on Employees’ Retention in Nigeria Custom Services: A Study of South West Zone, Nigeria

Abstract

The study specifically investigated the effect of compensation strategies on employee’s retention in Nigeria customs service. Specifically the study determined the effect of Bonus Payment (Overtime payment) on Self-evaluation and examined the effect of Fringe Benefits (pay, medical insurance) on career advancement opportunity of Nigerian Customs Service South West Zone, Nigeria. A well-structured questionnaire was used to collect information from the target respondents who were Nigeria customs service. A total of 1,096 constituted the population of the study and Taro Yamane was employed to derive the sample size of 293 for the study. The three (3) hypotheses were formulated to guide the study. The study revealed that financial compensation (salary) has significant effect on self-evaluation of Nigeria Customs Service, work schedule and vacation on career advancement in Nigeria Customs Service and Employees. Based on the findings, the following recommendations were made; there is need for HR officers in Nigeria Customs Service to take a longer timeline to search for the more accurate skill that affects the link between the compensation system, employee competence, and employee retention. Paying a competitive salary is crucial for organisations wishing to recruit and retain top talent, but is also necessary to give employees work schedule and vacation as it has shown in the result, the effect of career advancement. Employees takes holiday, rest and refresh and ready to go back to work. This kind of practice can contribute to high level of productivity in an organization. Employees should be provided with the adequate health insurance service and facilities during their active working period. Hence, bills allowance, duty allowance among others to get their regular check-ups and that the organization should align employees’ reward strategies with business strategy.

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