INFLUENCE OF TALENT MANAGEMENT PRACTICES ON PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN CONSTRUCTION INDUSTRY IN NAIROBI CITY COUNTY, KENYA
Abstract
The purpose of this study was to establish the influence of talent management practices on performance of small and medium enterprises in construction industry in Nairobi City County, Kenya. The area targeted in this study was Nairobi City County. The study was limited to the 3330 registered construction SMEs with National Construction Authority in the construction industry which will give insights on the various performance related problems faced by the construction enterprises in the county. The design of this research was a descriptive survey research.The collected data was analyzed using both quantitative and qualitative data analysis methods. The quantitative method involved descriptive analysis such as the frequencies. Data from the questionnaire was coded and logged in the computer using Statistical Package for Social Science (SPSS). The study further adopted a regression analysis to determine the relationship among the variables at 5% level of significance. It was notable that there exists a strong positive relationship between the independent variables and dependent variable as shown by R value (0.854). The data showed that the high R squared value of 0.729. It showed that the independent variables in the study were able to explain 72.90% variation in the performance of SMEs in the construction industry in the study area while the remaining 27.10% was explained by the other variables or other aspects outside the model. This implied that the set of the independent variables played a significant role on the performance of SMEs in the construction industry in Kenya. The study recommended for the establishment of the research and development to enable the organization to develop adequate risk taking skills for uncertainty bearing and coordination the business activities. It was recommended that the SMEs in the construction industry should keep valuing and ensuring that talent retention strategies like competitive compensation system, effective leadership style and internal recruitment policy were in place because the study found a high influence of talent retention on the SMEs performance. The study suggested that career management methods like having career counselling facilities ,career mentors, career planning and career development programs should be widely adopted by SMEs as doing so would lead to improved SMES performance. It was recommended that SMEs management should maintain learning and development practices like learning need identification, coaching and in-house development programmes to improve their performance.
Key Words: career management, leadership and development, innovation management, talent attraction
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.760
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