Workplace Diversity and Employee Retention in Small and Medium Enterprises (SMEs) in Lagos State

This study sought to investigate the effects of Workplace Diversity on Employee Retention in Small and Medium Enterprises (SMEs) in Lagos State, Nigeria. To achieve this objective, gender, age and ethnic diversity were considered for this study. The study adopted a quantitative approach and employed the descriptive survey research design. A sample of 145 SME owners/managers/operators were used for the study which were sampled using simple random sampling technique. Data was collected via the aid of a structured and close-ended questionnaire which was measured on a five-point Likert scale. Gathered data was analysed using both descriptive statistics (frequencies and percentages) and inferential statistics (multiple linear regression). Finding from the study showed that gender and ethnic diversity had statistically significant effect on Employee Retention. While only age diversity was seen not to have statistically significant effect on employee retention. Based on this, the study then concluded that workplace diversity has a significant effect on employee retention in SMEs in Lagos State. As a result, the study recommended that SME managers in Lagos state should take the necessary key steps in promoting gender diversity and ethnic diversity and also provide employees with opportunities for growth and development, and fostering a positive work environment in-order to improve employee retention in their organizations.