Recruitment, Selection and Retention Challenges of Export Processing Businesses in Sri Lanka

Abstract

The proficient management of employees and their contribution to export processing businesses (EPB) are commonly accepted as contributing to Sri Lanka's future prosperity. Effective recruitment, selection and retention of employees are a part of the employment relationship and can enhance work performance and contribute to business success. Principal focus of the study was to understand the variables and dynamics of the recruitment, selection and retention process. Qualitative exploratory research investigated the recruitment, selection and retention activities in export processing businesses in Sri Lanka. Seven constructs were developed by the Principal Component Analysis (PCA) and then the analysis of variance (ANOVA) with post hoc comparisons was applied to identify any significant difference. Finally implications, future research needs and directions were discussed. Research revealed that around 50% of Sri Lankan export processing businesses utilize formal written policies and procedures to deal with human resource management issues and 49% export processing businesses employ a person or group of persons, specifically to look after human resource management needs. Thus, it was also found that Export Processing Businesses with a demographic trading type of 'Company Ltd.' utilize all of the characteristic constructs of Human Resource Planning practices. Sign in Shop/Business Front was the most valued method of recruitment while salary/wages package able to offer was the most important issues impacting on employee recruitment. Completing an application form was the most popular selection method and the most important strategy identified by Sri Lankan Export Processing Businesses in retaining staff was financial benefits offered them by the company.