This study examines the relationship between motivation and employee retention in Small and Medium Scale Enterprises (SMEs) in Rivers State, Nigeria, with a focus on the moderating role of adhocracy culture. Using intrinsic and extrinsic motivation as independent variables, and career growth and job satisfaction as mediators, the research aims to understand how motivation impacts retention within SMEs. A quantitative survey methodology was applied, sampling 306 employees across 20 SMEs in Rivers State. Data was collected through structured questionnaires, which were analyzed to test the study’s hypotheses. Results revealed a significant positive relationship between intrinsic motivation and career growth, and a moderate inverse relationship between extrinsic motivation and job satisfaction. Adhocracy culture was found to enhance employee motivation, supporting retention strategies. The study recommends that SME managers balance intrinsic and extrinsic motivational factors, foster career development, and create a supportive culture that values innovation and employee growth to improve retention.

Keywords: Small and Medium-Sized Enterprises (SMEs), Motivation, Employee Retention, Adhocracy Culture;