ABSTRACT

 The study specifically investigated the effect of compensation strategies on employee’s retention in Nigeria customs service. The study has the following specific objectives; determine the effect offinancial compensation (salary) on self-evaluation, examine the effect ofwork schedule and vacation on career development and effect of health insurance on job satisfaction of Nigeria Customs Service. A structured questionnaire was used to collect information from the target from the target respondents who were Nigeria Customs Service. A total of 1,105 constituted the population ofthe study and taro Yamane was employed to derive a sample size of293 for the study. The three hypotheses were formulated to guide the study. The study reveals that financial compensation (salary) has significant effect on selfevaluation ofNigeria Customs Service. Work schedule and vacation on career development in Nigeria Customs Service and employees’ health insurance has significant effect on job satisfaction of Nigeria Customs Service. 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 more accurate skill that affects the link between the compensation system, employees’ competence and employees’ retention, paying a competitive salary is crucial for organizations wishing to recruit and retain top talent. It is also necessary to give employees’ work schedule and vacation as it has shown to have a positive impact on employees’ retention. Employees use holiday periods to rest, refresh and get ready for effective delivering ofduties. This kind ofpractice can contribute to high level of productivity in an organization. Furthermore, employees should be provided with the adequate health insurance services and facilities during their active working period, hence there is need for adequate provision ofmedical allowance, bills allowance, duty allowance among others for employees’ regular check-ups.