An exploratory study of the factors that influence the retention of managers in small to medium business enterprises

Abstract

Integrative Summary: Small to Medium Business Enterprises (SME's) are widely recognised as the driver of economic growth. SME's are responsible for employing large sections of the working population and, in doing so, facilitate the development of skills for many thousands of workers. Whilst SME's may differ (according to various definition criteria such as size or turnover) from other types of organisation, they share one common denominator across all organisations: their overall effectiveness depends largely on the individual and collective people that make up the organisation -their employees. In this context the central question relevant to the research is "how do SME's retain their valued employee managers?" A quantitative research method was applied in the research. Data was collected by way of a structured self-administered survey questionnaire designed from a post positivist paradigm. The survey was constricted by way of modifying and adapting previous surveys designed to investigate factors that influence staff retention, to be relevant to managers employed by SME's. The sample consisted of 35 managers employed by SME's in and around East London in the Eastern Cape, South Africa. The results of the research give rise to a number of clear indicators on the key retention factors of employee managers. Based on the research results SME's that want to have the best chance of retaining their employee managers need strong and effective leadership within the organisation, must address soft organisational factors that are conducive to an open and trusted working environment and the roles of managers must have inherent job factors that allow a sense of freedom to plan and execute tasks autonomously. Economic factors such as pay and financial benefits were identified through the research as being the least important factor when it came to manager retention. These conclusions provide SME owners and senior managers with insight into the factors that are most likely to influence their ability to retain employee managers.