THE EFFECTS OF TALENT MANAGEMENT ON ORGANISATIONAL SUCCESS IN SME IN NIGERIA

INTRODUCTION

Every organization wants to find and keep top talent because it needs to perform better than its competitors in this cutthroat business environment and endure the challenging economic climate(Oyerinde& Adeyemi, 2022). Without a shadow of a doubt, it is ideal for organizations to integrate a highly effective talent management strategy across all facets of their operations as it has become a requirement for those looking to build long-term competitive advantage, productivity, and profitability through their human capital(Agbaeze et al., 2017). However, the recent economic recession, the financial crisis, and the unstable government policies that have crippled the economy for more than a year are still causing lingering distress for SMEs in Nigeria. This has led to a chaotic business environment for SMEs and poses a threat to their survival.According to Lyria (2014), losing a skilled individual has a detrimental impact on an organization's performance, which influenced the researcher's decision to conduct this study in an effort to mitigate the damage it might pose to the industry.

In the context of succession planning and human resources, talent management could be considered as a critical issue. Companies realized that an organization's ability to achieve its objectives will be aided by talent management strategies that are strategically aligned (Huselid, Beatty, and Becker, 2005).It allows for the improvement of performance and the development of the employees' competencies and attitudes.SMEs can use talent management to create successful teams made up of talented individuals. Because these teams are qualified and experienced, they can be leveraged to address issues or shortcomings in a company's operations. Attracting, keeping, and cultivating bright individuals in SMEs for their advantages becomes a significant problem when talent management techniques are not in place.

            The overwhelming majority of SMEs underlines the significant strategic role that SMEs play in the global economy, and the ability of SMEs to create jobs is a key component of most governments' economic agendas today (Festing&Schäfer, 2014). According to a survey of SMEs in the global compact from 2004, SMEs make up over 90% of businesses and, on average, 50–60% of all employment in developing countries. As a result, SMEs are increasingly seen as significant contributors to the local, national, and global economies because they not only create a lot of jobs but also help to reduce poverty and ensure an equitable distribution of income.The agriculture, construction, manufacturing, commerce and industry, services, and trading sectors dominate Nigeria's economy, and these industries have made significant contributions to the growth and development of the nation as a whole.

            Previous studies have asserted that talent attraction, identification, and retention problems are likely to alter at various times during the expansion of SMEs since HR problems change based on the SME's stage of life (Oyerinde&Adeyemi,2022).In this cutthroat economic environment, it is obvious that firms must match their personnel management strategies with their corporate objectives. However, talent management is crucial for SMEs since it not only helps to attract exceptional employees but also to keep them around and help them grow. As a consequence, talent is harnessed for the best possible organizational success.

            Human resource development, which encompasses talent attraction, talent retention, and talent development, is one of the primary variables impacting talent management. However, the effectiveness of talent management will depend on a number of factors, including talent acquisition, talent retention, and talent development.The success of a manager's company and the achievement of organizational goals depend on finding and developing skilled employees.Employers have little choice except to position themselves as employers of choice, according to Iles et al. (2010). This suggests that businesses need to project a positive image in terms of the circumstances and benefits provided to their workforce.According to Storey et al. (2010), talent recruitment was positively connected with how well a company was performing. This indicates that any improvement in the organization's ability to attract talent has enhanced the level of satisfaction with that performance.No matter the size or industry, retaining important personnel is essential to the long-term health and profitability of any firm. Investments in employee training and career development are one of the key variables in employee retention, according to McCartney and Garrow's (2006) research.

The first step in developing a talent management plan should be to recruit talented individuals into the talent pool. According to Kehinde (2012), the majority of SMEs have not embraced the fundamental talent management strategy in order to grow the talent pool's skill and abilities.Innovation, which is fueled by knowledge, employee creativity, and the desire to generate new ideas and processes and which the SME sector lacks as a result of a lack of talent management, is essential to the current business environment.As a result, there is a gap about this issue. It becomes crucial to offer actual proof of how talent management affects SME performance in Nigeria.Although studies on the impact of talent management on organizational performance were conducted in Nigeria by Agbaeze, et al., (2017) and Kehinde (2012) in 16 companies and selected deposit money banks in Lagos State, respectively, it is still difficult to comprehend how the talent management of SMEs affects their performance. This is the motivation behind the current study.

1.2 Aim of the Study

            The main objective of this study the effect of talent management on organisational success in SME in Nigeria.

1.2.1 Objectives of the Study

            The specific objectives of the study were as follows;

1. To determine effect of talentattraction on the organisational success in SME in Nigeria
2. To examine the effect of talentretention on the organisational success in SME in Nigeria
3. To examine the effect of talentdevelopment on the organisational success in SME in Nigeria.
4. To determine the relationship between talent management and organisational success in SME in Nigeria.

1.3 Research Questions

            The research questions for this study are clearly stated as follows:

1. Doestalentattraction have effect on the organisational success in SME in Nigeria.
2. Does organisational success in SME in Nigeria have effect on the organisational success in SME in Nigeria.
3. Does talentdevelopmenthave impact on the on the organisational success in SME in Nigeria.
4. Is there a relationship between talent management and organisational success in SME in Nigeria?.

1.4 Research Hypotheses

The hypotheses for this study are stated as follows:

Hypothesis One

H0: There is no significant effect of talentattraction on the organisational success in SME in Nigeria

H1: There is a significant effect of talentattraction on the organisational success in SME in Nigeria.

Hypothesis Two

H0: There is no significant effect of talentretention on the organisational success in SME in Nigeria

H1: There is a significant effect of talentretention on the organisational success in SME in Nigeria

Hypothesis Three

H0: There is no significant effect of talentdevelopment on the organisational success in SME in Nigeria

H1: There is a significant effect of talentdevelopment on the organisational success in SME in Nigeria

Hypothesis Four

H0: There is no significant relationship between talent management and organisational success in SME in Nigeria

H1: There is a significant relationship between talent management and organisational success in SME in Nigeria

2.1 Literature Review

2.1.1 Talent Management

            It is obvious in the contemporary marketplace that each company wants to outperform its competitors and ultimately develop a competitive advantage that will enable the sustainability of the organization.Innovation, which is fueled by information, employee creativity, and the ambition to constantly learn, investigate, and develop new ideas and processes, is what the contemporary environment thrives on (Bartes, 2013). Talent is a precious resource that may be fostered, developed, and used to the organizations' advantage(Abu Hassan, 2016).

            The majority of SMEs do not practice fundamental talent management. The primary job of a talent management plan is to add talented individuals to the talent pool. It also includes finding the appropriate individuals who can offer a competitive advantage and produce results.According to Iles, Chuai, and Preece (2010), talent management can help organizations become more capable through succession planning and career planning for talent development, both of which finally result in organizational success.When effective talent management procedures are not in place, talented individuals quit the company if they are not satisfied with the overall rewards, leadership, organizational policies, etc (Storey et al. 2010). According to Storey et al. (2010), talent management is a very intentional strategy used by the company to attract, train, and keep employees who have the necessary skills, dispositions, and aptitudes to achieve the business's strategic goals