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.
References :
- Aguinis, H. (2019). Performance management (4th ed.). Chicago, IL: Chicago Business Press.
- Allen, D. G., Bryant, P. C., & Vardaman, J. M. (2010). Retaining talent: Replacing misconceptions with evidence-based strategies. Journal of Management, 36(2), 317–347. https://doi.org/10.1177/0149206309350087
- Allen, T. D., Johnson, R. C., Kiburz, K. M., & Shockley, K. M. (2013). Work–family conflict and flexible work arrangements: Deconstructing flexibility. Journal of Management, 39(2), 345–376. https://doi.org/10.1177/0149206310363614
- Armstrong, M., & Taylor, S. (2020). Armstrong’s handbook of human resource management practice (15th ed.). London: Kogan Page.
- Bakker, A. B., & Demerouti, E. (2017). Job demands–resources theory: Taking stock and looking forward. Journal of Occupational Health Psychology, 22(3), 273–285. https://doi.org/10.1037/ocp0000056
- Bakker, A. B., Albrecht, S. L., & Leiter, M. P. (2011). Key questions regarding work engagement. European Journal of Work and Organizational Psychology, 20(1), 4–28. https://doi.org/10.1080/1359432X.2010.485352
- Blau, P. M. (1964). Exchange and power in social life. New York, NY: John Wiley & Sons.
- Boxall, P., & Purcell, J. (2016). Strategy and human resource management (4th ed.). London: Palgrave Macmillan.
- Bryman, A. (2016). Social research methods (5th ed.). Oxford: Oxford University Press.
- Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: An interdisciplinary review. Journal of Management, 31(6), 874–900. https://doi.org/10.1177/0149206305279602
- Creswell, J. W. (2014). Research design: Qualitative, quantitative and mixed methods approaches (4th ed.). Thousand Oaks, CA: Sage Publications.
- Deci, E. L., & Ryan, R. M. (2000). The “what” and “why” of goal pursuits: Human needs and the self‐determination of behaviour. Psychological Inquiry, 11(4), 227–268. https://doi.org/10.1207/S15327965PLI1104_01
- Garavan, T. N., Carbery, R., & Rock, A. (2021). Mapping talent development: Definition, scope and architecture. European Journal of Training and Development, 45(1), 1–21. https://doi.org/10.1108/EJTD-10-2019-0179
- Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2019). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Thousand Oaks, CA: Sage Publications.
- Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement and business outcomes: A meta-analysis. Journal of Applied Psychology, 87(2), 268–279. https://doi.org/10.1037/0021-9010.87.2.268
- Hausknecht, J. P., Rodda, J. M., & Howard, M. J. (2009). Targeted employee retention: Performance-based and job-related differences in reported reasons for staying. Human Resource Management, 48(2), 269–288. https://doi.org/10.1002/hrm.20279
- Herzberg, F., Mausner, B., & Snyderman, B. (1959). The motivation to work (2nd ed.). New York, NY: John Wiley & Sons.
- Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33(4), 692–724. https://doi.org/10.2307/256287
- Locke, E. A. (1976). The nature and causes of job satisfaction. In M. Dunnette (Ed.), Handbook of industrial and organizational psychology (pp. 1297–1343). Chicago: Rand McNally.
- Noe, R. A. (2017). Employee training and development (7th ed.). New York, NY: McGraw-Hill Education.
- Robbins, S. P., & Judge, T. A. (2017). Organizational behavior (17th ed.). Harlow: Pearson Education.
- Saks, A. M. (2006). Antecedents and consequences of employee engagement. Journal of Managerial Psychology, 21(7), 600–619. https://doi.org/10.1108/02683940610690169
- Schaufeli, W. B., & Bakker, A. B. (2004). Job demands, job resources and their relationship with burnout and engagement. Journal of Organizational Behavior, 25(3), 293–315. https://doi.org/10.1002/job.248
- Schaufeli, W. B., Salanova, M., González-Romá, V., & Bakker, A. B. (2002). The measurement of engagement and burnout: A two-sample confirmatory factor analytic approach. Journal of Happiness Studies, 3, 71–92. https://doi.org/10.1023/A:1015630930326
- Yukl, G. (2013). Leadership in organizations (8th ed.). Boston, MA: Pearson Education.
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.