Talent retention challenges among non-family talented individuals: multiple case studies of family SMEs in Jordan

Abstract

PurposeThis study explores the influence of Wasta, informal social network on the retention of non-family talented employees in family-owned SMEs in Jordan. Despite the increased attention received by talent management (TM) in the last decade, limited attention has focused on family-owned-SMEs. This study demonstrates while resource-based view explains how human capital provides sustainable competitive advantage the lack of strategic retention management may lead to losing this competitive advantage.Design/methodology/approachA multiple case study approach underpinned by a qualitative orientation was utilized to help explore the dynamics of TM practices in greater depth. The authors conducted a series of 18 semi-structured in-depth interviews with HR managers, non-family junior and middle managers from six family-owned enterprises.FindingsEvidence showed that family Wasta accelerate employee dissatisfaction among non-family talented individuals and in turn enhances their intention to leave due to organizational injustice and lack of organizational support.Practical implicationsThis study could help managers in family-owned organizations enforce the concept of organizational justice by implementing solid performance management systems and talent reviews to strengthen the social exchange with non-family competent employees.Originality/valueFirst, this study demonstrates how access to Wasta accelerate the mobility of non-family talented individuals and in turn enhances their intention to leave. Second, this study provides a theoretical and contextual framework to deepen the authors’ understanding of the impact of social networks on strategic retention performance.