PEOPLE MANAGEMENT AND TALENT RETENTION IN SMALL AND MEDIUM-SIZED FAMILY BUSINESSES

Abstract

Family-owned small and medium-sized enterprises constitute the backbone of the Brazilian economy, accounting for approximately 90% of the country’s organizations and a significant share of job creation. Despite their economic and social importance, these companies face major challenges, particularly high staff (turnover), resulting from centralized decision-making, informal management practices, and the overlap between family and professional relationships. This study aims to analyze the factors contributing to turnover and to investigate effective strategies to promote talent retention in family-owned small and medium-sized enterprises. Specifically, it seeks to identify the main factors responsible for high turnover rates, examine current people management practices, and highlight emotional intelligence as a successful strategy for keeping employees engaged and committed. The theoretical framework addresses the concept and characteristics of family businesses, the professionalization process, people management, and the role of emotional intelligence in promoting organizational harmony and reducing conflicts. The research is qualitative with an exploratory approach and bibliographic and documentary character. The methodological procedures proposed by Marconi and Lakatos (2016) were adopted as a basis. The results indicate that the professionalization of management, combined with the development of leaders’ emotional intelligence, represents a promising path to mitigate turnover, strengthen talent retention, and contribute to the longevity and competitiveness of Brazilian family businesses.