How Do Recruitment and Selection Practices Impact Small and Medium Enterprises Performance in the Construction Industry in Sierra Leone?

Abstract

This research sought to investigate the impact of recruitment and selection practices on SMEs performance in the construction industry in Sierra Leone. Specifically it examined the different recruitment and selection practices employ by SMEs owner/managers in attracting employees. In searching for answers in relation to the impact of recruitment and selection practices on SMEs performance on the construction industry in Sierra Leone, three main research questions and three hypotheses were proposed.

The objectives of the study are (1) to identify the recruitment and selection methods of SMEs in the construction industry in Sierra Leone, (2) to examine the factors SMEs owner/managers considered before recruiting and selecting employees, (3) to investigate the extent to which recruitment and selection practices impact the performance of SMEs in the construction industry in Sierra Leone.

This research employed qualitative and quantitative research methods to examine the relationship between recruitment and selection practices and SMEs performance on 59 SMEs. It employed in depth interviews of owner/managers and a cross sectional survey of owner/managers and employees. Hence, the data was analysed using statistical package for social sciences (SPSS) employing descriptive statistical analysis and bivariate correlations techniques. The study established that owner/managers mainly recruit and select employees by relatives and friends and word of mouth and one –on- one and panel interviews. In general, the results of the study revealed significant relationships between recruitment and selection practices and SMEs performance (growth in profit, sales and increased productivity). What is significant is the fact that the development of SMEs in Sierra Leone is marred by poor recruitment and selection practices. Hence it is plausible for a study of this kind to be carried out in a bid to sensitize and enable SMEs owner/managers to implement measures regarding human resource development in respect to recruitment and selection practices. The study contributes to knowledge by filling a research gap and by revealing how recruitment and selection practices impact SMEs performance. On the strength of the findings, the following recommendations were suggested that owner/managers should recruit and select the appropriate workers regardless the number of employees, use more external source of recruitment, consider factors like health and fitness before recruitment and selection as well as other methods of recruitment and selection. Several major limitations of the study were lack of time and money, self-reporting, limited dependent and independent variables, predominance of questionnaires and limited semi-structured interviews and finally lack of adequate sampling frames.

Keywords: Recruitment and selection practices, performance of employees, HRM, SMEs