Strategic Human Resource Management and Firm Performance in the Nigerian Insurance Sector: A Study of NAICOM-Regulated Firms

This study examines the application of strategic human resource management (SHRM) practices and their effect on firm performance among insurance companies regulated by the National Insurance Commission (NAICOM) in Nigeria. The Nigerian insurance industry has undergone significant recapitalisation and regulatory reforms in recent years, making workforce alignment with strategic objectives a critical management priority. The study employs a cross-sectional survey design, collecting data from 160 HR managers and senior executives across 20 NAICOM-regulated firms through structured questionnaires. Firm performance is measured using a balanced scorecard approach encompassing financial, customer, process, and learning dimensions. The Resource-Based View and Harvard Model of HRM provide dual theoretical anchors. Findings reveal that firms deploying integrated SHRM bundles, comprising selective staffing, performance-aligned compensation, and continuous learning systems, outperform those with isolated or reactive HR practices across all balanced scorecard dimensions. The study also identifies a significant misalignment between stated HR strategies and actual HR practice implementation in mid-sized insurers, attributed to limited HR function capacity. Recommendations include the professionalisation of HR departments in smaller insurance firms, the adoption of strategic HR planning processes linked to corporate business planning cycles, and investment in HR analytics capabilities. This research contributes SHRM evidence specific to the Nigerian insurance sector, where empirical studies remain sparse relative to banking and manufacturing. Keywords: Strategic HRM, Firm Performance, Insurance Sector, NAICOM, Balanced Scorecard.