Employment Conditions And Their Influence On Employee Retention In The Small And Medium Enterprises Furniture Manufacturing Sector In Zimbabwe

This mixed methods study aimed to critically examine employment conditions in the Small and Medium Enterprises sector (SMEs) in Zimbabwe; and their contribution to the retention of employees, within the furniture manufacturing businesses in Glen View Home Industry Complex in Harare. The research adopted a pragmatic study approach where statistical and narrative data were generated and correlated through questionnaires and interviews. The quantitative data was analysed using SPSS version 21.0 and on the qualitative side, narratively through the themes and categories analysis model. A total of 367 respondents, that is, 176 business owners and 191 employees in the quantitative sample, were randomly selected for this study. The site was carefully selected for its size, intensity and accessibility in the Glen View high density suburb. The existing labour laws in Zimbabwe govern employer-employee relations and this includes the SMEs of the furniture manufacturing sector in the Glen View Home Industry Complex. Key findings established that employment conditions, including recruitment and selection; learning and development; remuneration and disciplinary handling, all contributed towards the retention of employees. However, other factors such as succession planning contributed the least towards the retention of employees in the SMEs furniture manufacturing sector in the Glen View Home Industry Complex of Harare. The study also established a huge absence of documented employment conditions and subsequent lack of implementation of labour regulations which resulted in workers operating in deprived employment conditions, leading to unethical strategies for retention of employees at Glen View Home Industry Complex. The employees absorbed by the SMEs in the furniture manufacturing sector held greater expectations in relation to employment conditions though the employers were not able to fulfil the employees’ expectations, resulting in retention of employees based on lack of alternative employment. Some employees moved from their employers to start and duplicate similar businesses, causing excessive duplication of the same products. Disgruntled employees easily secured new employment within the same complex. Challenges faced by managers in SMEs furniture manufacturing sector included failure to build capital resources that promote business growth and offer employee basic benefits including medical aid, pension schemes and mortgage schemes. The SMEs owner and their managers engaged their own relatives as a cheaper strategy for their businesses.