Analysis of Perceptions on Talent Management Implementation in MSMEs

A Study on Women MSME Entrepreneurs in Palopo City

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in the Indonesian economy but face significant challenges in effective human resource management. Talent management emerges as a strategic approach that can help MSMEs identify, develop, and retain talented individuals to enhance competitiveness. This study aims to analyze the perceptions of women MSME entrepreneurs in Palopo City regarding the implementation of talent management in managing their human resources. This study employs a quantitative descriptive method involving 200 women MSME entrepreneurs in Palopo City selected through incidental sampling technique. Data were collected using a questionnaire consisting of eight statement items measuring four dimensions of talent management: talent planning, talent acquisition, talent development, and talent retention. Each dimension was measured with two indicators using a five-point Likert scale. Data analysis was conducted descriptively by calculating mean values for each dimension. The results show that the implementation of talent management in women-owned MSMEs in Palopo City is in the good category with an overall score of 4.16. Talent development and talent retention are the dimensions with the highest performance (4.17 each), indicating the strength of women MSME entrepreneurs in developing employee competencies and retaining talented workforce. Talent planning obtained a score of 4.15, indicating good capability in workforce planning. Meanwhile, talent acquisition is the dimension with the lowest score (4.13), although still in the good category, indicating an area that needs improvement, especially in assessment methodology and candidate selection aspects. Respondent characteristics show that the majority are in productive age (60% aged 25-45 years), have adequate education levels (81.5% at least high school graduates), and operate micro-scale businesses (93.5% with 1-4 employees). This study provides theoretical contributions by demonstrating that talent management can be adapted in the context of MSMEs with limited resources, as well as practical implications for MSME entrepreneurs, policymakers, and supporting institutions in designing more targeted capacity development programs.