Exploring the Relationship between Work Expectations and Employee Retention among Generation Z in Selected Small and Medium Enterprises in Nigeria

Employee retention continues to challenge small and medium enterprises (SMEs) in Nigeria
today more than ever before, especially with generation Z starting to enter the workforce. The
current study explored the relationship between work expectations and employee retention
among generation Z employees in a sample of SMEs in Ogun State. Our approach was
descriptive survey design and we collected data from 300 respondents representing five SME
sectors using multi-stage stratified sampling. A structured questionnaire was used to measure
six constructs including career growth opportunities, work life balance, autonomy, loyalty,
engagement, and career clarity. The data were analyzed through descriptive statistics,
correlation, and regression analysis. The findings showed that career growth opportunities,
work life balance, and autonomy explicity accounted for the employee retention outcome.
Career growth was the greatest predictor (β = 0.421) and work life balance and autonomy
were both statistically significant and positive influences on employee retention outcomes.
The correlation results suggested that work expectations all had strong associations with
loyalty, engagement, and career clarity. On the whole, the model on work expectations
explained 47.8 percent of employee retention outcomes variance. The study concluded that
Human Resource practices that incorporate work expectations matter, because they help to
align Generation Z expectations which engenders commitment, reduces turnover, and
improves sustainability. The findings generally supported empirical evidence for the socially
exchange theory, Herzberg's two factor theory, and Person–Organisation Fit theory. This
study recommend that SMEs consider structured career development, positive work
atmosphere, and employee autonomy as means of securing their workforce over the longer
term.