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Employee Retention Strategies and Employee Engagement in SMEs: A Human Motivation Perspective


Authors : Josephine Micheal-Oshineye

Volume/Issue : Volume 11 - 2026, Issue 4 - April


Google Scholar : https://tinyurl.com/28xbn6p8

Scribd : https://tinyurl.com/nha5c9cx

DOI : https://doi.org/10.38124/ijisrt/26apr1854

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.


Abstract : Purpose Employee engagement is increasingly recognised as a critical factor influencing organisational performance, particularly within small and medium-sized enterprises (SMEs) that rely heavily on the commitment and productivity of their workforce. However, many SMEs struggle to maintain an engaged workforce due to challenges related to employee retention and workforce stability. Drawing on human motivation theories, this study examines the influence of employee retention strategies on employee engagement in Nigerian SMEs.  Design/Methodology/Approach This study adopts a quantitative research design using survey data collected from employees working in SMEs located in Abuja, Nigeria. A structured questionnaire was administered to employees across multiple SMEs, resulting in 383 usable responses. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) to examine the relationships between employee retention strategies and employee engagement.  Findings The results indicate that employee retention strategies significantly influence employee engagement in SMEs. Specifically, flexible working arrangements, employee welfare initiatives, training and development, and performance recognition were all found to have positive and significant effects on employee engagement. The findings highlight the importance of organisational practices that support employees’ autonomy, competence and sense of appreciation in fostering engagement.  Practical Implications The findings suggest that SME managers should prioritise the implementation of retention strategies that enhance employees’ work experiences and motivational needs. Organisations that invest in employee development, provide supportive welfare initiatives and recognise employee contributions are more likely to cultivate an engaged and committed workforce.  Originality This study contributes to the human resource management literature by providing empirical evidence on the relationship between employee retention strategies and employee engagement within SMEs in a developing economy. By integrating Herzberg’s Two-Factor Theory and Self-Determination Theory, the study offers a human motivation perspective on how organisational practices influence employee engagement.

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Purpose Employee engagement is increasingly recognised as a critical factor influencing organisational performance, particularly within small and medium-sized enterprises (SMEs) that rely heavily on the commitment and productivity of their workforce. However, many SMEs struggle to maintain an engaged workforce due to challenges related to employee retention and workforce stability. Drawing on human motivation theories, this study examines the influence of employee retention strategies on employee engagement in Nigerian SMEs.  Design/Methodology/Approach This study adopts a quantitative research design using survey data collected from employees working in SMEs located in Abuja, Nigeria. A structured questionnaire was administered to employees across multiple SMEs, resulting in 383 usable responses. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) to examine the relationships between employee retention strategies and employee engagement.  Findings The results indicate that employee retention strategies significantly influence employee engagement in SMEs. Specifically, flexible working arrangements, employee welfare initiatives, training and development, and performance recognition were all found to have positive and significant effects on employee engagement. The findings highlight the importance of organisational practices that support employees’ autonomy, competence and sense of appreciation in fostering engagement.  Practical Implications The findings suggest that SME managers should prioritise the implementation of retention strategies that enhance employees’ work experiences and motivational needs. Organisations that invest in employee development, provide supportive welfare initiatives and recognise employee contributions are more likely to cultivate an engaged and committed workforce.  Originality This study contributes to the human resource management literature by providing empirical evidence on the relationship between employee retention strategies and employee engagement within SMEs in a developing economy. By integrating Herzberg’s Two-Factor Theory and Self-Determination Theory, the study offers a human motivation perspective on how organisational practices influence employee engagement.

Paper Submission Last Date
31 - May - 2026

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