Abstract

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 nonmanagement

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.