All Things MSMEs!

Article#221225: Of Retention to Results: 

By Victor PM Nyasulu

Last week, we discussed how MSMEs can retain top talent. Retention, however, is only the beginning. Keeping good people without translating their presence into measurable results creates a silent problem—retained but underutilised talent becomes a hidden cost rather than a business advantage.

Today, we briefly discuss how MSMEs can Turn Talent into Productivity and Profit!Many Zambian MSMEs proudly report long-serving employees, yet still struggle with low productivity, weak customer service, and inconsistent cash flow. The issue is not loyalty; it is activation of talent. Lets go!

1. Retention Without Role Clarity Limits Results

In many small businesses, employees do “a bit of everything.” While flexibility is necessary, unclear roles confuse accountability.When people do not know:What they are responsible for

How success is measured

Who makes final decisions

They operate in survival mode rather than excellence.If that’s your situation, what to do? Every employee must understand their main responsibility, what a good week looks like, and how their role contributes to the business.Role clarity costs nothing but significantly improves output.

2. Performance Management Can Be Simple

Many MSME owners avoid performance management, assuming it is bureaucratic or expensive. It is neither.You do not need annual appraisals or a fully-fledged Human Resource-HR department. What you need are consistent conversations.A practical approach would for example be: Weekly or bi-weekly check-insAsk three questions:What did you work on?What challenges did you face?What support do you need?Performance improves when employees feel guided and supported, not ignored.

3. Motivation Is More Than Money

While competitive pay matters, MSMEs rarely win salary wars. Fortunately, money is not the only motivator. Employees can be energised by:Recognition for good workTrust and autonomyOpportunities to learnA sense of purposeIn many MSMEs, a sincere “well done” or delegated responsibility can inspire more commitment than a pay increment. Salary attracts people. Meaningful work activates them.

4. The Founder Bottleneck Problem

One of the biggest productivity killers in MSMEs is over-centralisation. 

Owners hire capable staff but retain all authority. Signs include:Decisions waiting for the owner

Skilled employees reduced to messengers

Innovation stalling

Talented people want responsibility and impact. When authority is withheld, performance suffers. Business owners must decide: Do you want to be needed for everything, or do you want a business that functions beyond you?

5. Linking Talent to Cash Flow

Ultimately, businesses exist to survive but more meaningfully to transcend survival and begin to thrive financially! Talent must therefore connect directly to results. Every MSME employee must be made to ask:

How does this role generate revenue?

How does it reduce costs?

How does it improve customer loyalty?

When employees see how their work affects cash flow, they shift from “doing tasks” to creating value.

My Final Thought

Retention is not the destination; it is the starting point. MSMEs that keep people but fail to develop, empower, and align them will slowly lose competitiveness. Just as idle machinery costs money, idle talent costs even more! The goal is not just to employ people, but to multiply value through people.

Napita Mukwai!

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The Author, VICTOR PM NYASULU Consult-VNc is also Partner at NS-CGMA +260 955 746 997. vpmn69@gmail.com

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