Human Resources Retention in SMEs: A Systematic Review of Determinants, Mechanisms, and Managerial Strategies

Abstract

This paper examines the determinants of employee retention in SMEs, the theoretical mechanisms through which these determinants operate, and the managerial strategies through which SME leaders can improve retention outcomes. The study adopts systematic literature review methodology, following established conventions for theory-building reviews in management research. A structured search of peer-reviewed journal articles, conference papers, and doctoral dissertations published primarily between 2011 and 2026 was conducted across multiple academic databases, yielding a final corpus of studies addressing retention determinants, turnover theory, and SME-specific human resource management practices. The review identifies five recurring clusters of retention determinants in the SME literature: compensation and benefits, training and career development, leadership and managerial support, work-life balance, and organizational commitment and the broader psychological climate of the firm. Evidence on the relative strength of these determinants is mixed across studies and contexts, with several recent quantitative studies finding work-life balance and leadership style to be stronger predictors of retention than compensation alone, while other studies report significant effects of compensation, training, and career development.