Talent Management and Skill Development as Catalysts for Employee Retention: Evidence From Tech Entrepreneurship in Southwest, Nigeria

Abstract

This study examined talent management within Nigeria's tech entrepreneurship ecosystem, focusing on how recruitment, retention, and skills development strategies impact workforce sustainability in technology startups and SMEs. Using the Resource-Based View and Human Capital Theory as theoretical frameworks, we analyzed primary data from 76 HR professionals across Nigerian tech firms through a structured questionnaire. The full sample was used for descriptive analysis, while correlation analysis was performed on a randomly selected subsample of 20 responses to ensure statistical robustness given resource constraints. Results revealed that talent management strategies significantly influence recruitment effectiveness (r = 0.810, p < 0.001), employee retention (r = 0.760, p < 0.01), and workforce competencies (r = 0.690, p < 0.01). The study found that 81.6% of turnover was driven by better salary offers elsewhere, while 67.1% of firms identified budget constraints as the primary barrier to skills development. These findings have critical implications for tech entrepreneurs and SME managers seeking to build sustainable competitive advantages through human capital. The study concludes that effective talent management is essential for sustaining Nigeria's growing tech entrepreneurship sector.