Sustainable Talent Management: Aligning cost and Retention is SMEs

Abstract

In today’s competitive environment, Small and Medium Enterprises (SMEs) face significant challenges in managing and retaining talent due to budget constraints and lack of formal HR infrastructure. Unlike large corporations, SMEs operate with limited financial flexibility, making it difficult to offer competitive compensation or benefits. This study explores sustainable talent management strategies that balance financial limitations with the imperative of retaining skilled employees. A mixed-method research design was used, combining qualitative interviews and quantitative survey data from SME employees and HR professionals. The findings indicate that non-monetary rewards, internal promotions, flexible work options, and leadership engagement significantly contribute to employee retention. The study offers practical recommendations tailored for SMEs and contributes to literature by proposing low-cost, high-impact HR solutions.