The Nexus Between Recruitment and Selection Practices and Business Performance of Nigerian Small and Medium-Sized Manufacturing Enterprises

Babalola Oluwayemi Oginni; Isola Olalekan Ayantunji; Toyin Solomon Olaniyan; Kolawole Sunday Ajibola; Theresa ‘Bosede Ajakaye

doi:10.32890/ijms2023.30.2.10

Authors

Babalola Oluwayemi Oginni Faculty of Management Sciences, College of Management and Social Sciences, Osun State University, Nigeria
Isola Olalekan Ayantunji Faculty of Management Sciences, College of Management and Social Sciences, Osun State University, Nigeria
Toyin Solomon Olaniyan Faculty of Management Sciences, College of Management and Social Sciences, Osun State University, Nigeria
Kolawole Sunday Ajibola Faculty of Management Sciences, College of Management and Social Sciences, Osun State University, Nigeria
Theresa ‘Bosede Ajakaye Faculty of Management Sciences, College of Management and Social Sciences, Osun State University, Nigeria

DOI:

https://doi.org/10.32890/ijms2023.30.2.10

Keywords:

Recruitment and selection, business performance, manufacturing SMEs, job vacancy advertisement, financial performance, Nigeria

Abstract

This paper examined the relationships between recruitment and selection practices with business performance in the manufacturing
sector using the Small and Medium Enterprises (SMEs) in the Lagos metropolis as the unit of analysis. It identified employee referral,
job vacancy advertisement, employment agency and employee promotion as the most commonly used recruitment and selection
practices in the manufacturing SMEs’ environment. The study made use of a questionnaire administered to 288 respondents and the results obtained showed that the vacancy advertisement and employment agency have a moderate relationship with business performance while employee promotion has a weak relationship with business performance while employee referral has a negative relationship with business performance. Regression results also indicated a positive relationship between combined recruitment and selection practices and business performance. It was concluded that the management of SMEs should prioritise employment agency among the recruitment and selection practices since it was found to have a more decisive influence on business performance. Thus, having the patronage of the employment agency with sound personnel policies that will be costeffective and outline human resource requirements is recommended.

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