Role of Incentives in the Management and Retention of Employees among SMES

Role of Incentives in the Management a Retention of Employees among SMES

Retention of talent has become a major challenge for small and medium size enterprises (SMEs), while skilled employees are being attracted by more than one organization at a time with various incentives. For large firms, loss of a few among thousands of staff is part of doing business and usually other employees take up the space until a replacement is found. However, small to medium size enterprise that have few employees, loss of key employees can have effect on business productivity and the result can be severe. When a business losses employees, it losses skills, experience, and the nature of these losses affect productivity, product and service quality. Hence, all organisations require motivated employees to function effectively and stay on the job. Motivated employees are dedicated and work enthusiastically. The outcome of these motivated workforces includes employee retention. It is against this backdrop, that this paper examined the role of incentives in the management and retention of employees among SMEs.

Keywords: Incentive, SMES, Employees, Retention, Productivity

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