STRATEGIC EMPLOYEES’ COMPENSATION AND WORK-LIFE BALANCE AMONG EMPLOYEES OF SERVICE FIRMS IN NIGERIA

Abstract

This study examined strategic employee compensation and work-life balance among service firms in Nigeria. The study adopted a quantitative research approach and used a structured, closed-ended questionnaire to collect data from employees across the regional offices of selected service 
firms. From a total population of 25,706 employees, a sample size of 394 respondents was determined using Yamane’s formula. The collected data were analysed using the Statistical Package for the Social Sciences (SPSS), Version 27.0, while the hypotheses were tested using multiple linear regression analysis. The findings showed that strategic employee compensation had a significant and positive effect on work-life balance among employees of service firms in Nigeria. Specifically, competitive salary, performance-based compensation, and employee benefits each demonstrated significant effects on employees’ ability to maintain a satisfactory balance between their work and personal responsibilities. The study therefore concluded that effective strategic compensation practices played an important role in improving work-life balance among employees in Nigeria’s service sector. Based on the findings, the study recommended that service firms should strengthen competitive salary structures, ensure transparent and fair performance-based rewards, and provide comprehensive employee benefits that respond to employees’ work and personal needs. The study contributed to knowledge by addressing identified knowledge, conceptual, theoretical, empirical, and methodological gaps through the integrated examination of key compensation dimensions and work-life balance within the Nigerian service-sector context, using quantitative evidence and multiple regression analysis.