Employee Resourcing and Performance of Small and Medium Enterprises in Lagos State, Nigeria

Abstract

The objective of this study is to investigate if employee resourcing can be used to predict the performance of Small & Medium Enterprises (SMEs) in Lagos State, Nigeria. The study adopted the survey research design. Sources of data for the study were primary, secondary, and tertiary. The instruments for the study were in-depth interview and self developed questionnaire using a 4-point Likert scale. A sample of owners/managers of SMEs was drawn from the target population using stratified random sampling techniques. Of the 450 copies of questionnaire administered, 257 copies were returned representing 57 per cent response rate. The reliability test (Cronbach’s Alpha) of the instrument yielded 0.60. Data were analyzed using Statistical Package for Social Sciences (SPSS) version 16. The major finding of the study is that although there is a mild association (0.113) between employee resourcing and performance, it is not strong enough to predict the performance of the sampled SMEs. Most of the owners/managers interviewed opined that retaining employees was one of their greatest challenges but not strong enough to determine the level of their performance as they have always envisaged that some of their staff can leave the organization. Hence, adequate provision is made for skilled manpower shortage. Therefore it is recommended that recruitment and selection should be outsourced to firms which specialize in recruiting employees