Rationale
Small and medium enterprises (SMEs) represent approximately 90% of businesses globally, with Vietnam seeing an even higher rate of about 98% These enterprises play a crucial role in the national economy, providing substantial contributions to government revenue, creating numerous local jobs, and significantly impacting the country's GDP According to the Vietnam General Statistic Office (GSO, 2016), SMEs employ 51% of the workforce and account for over 40% of Vietnam's GDP, highlighting their importance in fostering economic growth and stability.
In the context of Vietnam's economic renovation and international integration, particularly following its membership in the WTO (2007), TPP (2016), and various free trade agreements (FTAs), Vietnamese enterprises, especially small and medium-sized enterprises (SMEs), face significant business opportunities alongside considerable challenges Economic experts highlight that the primary challenge for domestic enterprises is the intense competitive pressure from multinational corporations and international groups, which disproportionately affects SMEs These smaller businesses often struggle with limited financial resources, inadequate capital mobilization capabilities, and insufficient human resources and technology, making them particularly vulnerable in this competitive landscape.
The shortage of highly qualified personnel and skilled workers remains a significant challenge for SMEs, compounded by their limited experience in accessing international markets and understanding global conventions To secure a competitive position, SMEs must prioritize innovation and enhance their business capacities This focus extends beyond organizational structure and financial resources to include the critical development of human resources Given that changes in finance and technology can be difficult to implement, improving human resources emerges as the most vital and adaptable factor for driving competitiveness.
Small and medium-sized enterprises (SMEs) face significant challenges in recruiting and retaining a high-quality workforce due to financial constraints and ineffective recruitment strategies To enhance their human resources, SMEs must focus on attracting qualified employees who align with their business objectives and the specific requirements of each position.
Small and medium-sized enterprises (SMEs) must develop an effective recruitment policy to enhance their human resource capabilities A well-defined recruitment strategy is crucial for attracting and retaining talent, especially as many SMEs currently encounter significant challenges in sourcing qualified personnel.
Hanoi, the capital of Vietnam, plays a crucial role in the nation's economic growth, evidenced by the increase in enterprises from approximately 69,000 in 2008 to 142,000 in 2014 A significant number of these enterprises are small and medium-sized enterprises (SMEs) primarily operating in the services and construction sectors, which require skilled labor However, the presence of foreign direct investments (FDIs) and larger companies creates intense competition, making it challenging for SMEs to recruit qualified candidates A survey by CIEM in 2016 revealed that 79% of SMEs struggle with recruitment due to factors such as low wages, inadequate working conditions, and limited opportunities for career advancement This context has prompted the author to focus on "The personnel recruitment of small and medium enterprises in the Hanoi area during the international integration period" for their master's thesis.
With research content as above, the author poses research questions for his topic as follows:
- How is the current status of recruitment and selection practice among SMEs in Hanoi?
-What is the impact of recruitment and selection practices on SMEs performance and human resource?
Aims of research
This study aims to evaluate the current recruitment and selection practices in small and medium-sized enterprises (SMEs) and offers recommendations for enhancing these processes.
- Survey and evaluate the current actual situation of personnel recruitment and selection in SMEs in Hanoi area
- Investigate the inpact of recruitment and selection practices on individual and SMEs performance
- Propose suggestionss in order to improve effectiveness of personnel recruitment activity for SMEs in Hanoi in the near future.
Objects of research
Objects of research are Personnel recruitment and selection activities of SMEs in Hanoi
Scope of research
Location scope: This study will be carried out at level of SMEs in Hanoi area
- Scope of contents: the current study only focuses on recruitment and selection practices of SMEs but not on other aspects of human resource management
- Scope of space: The research focuses on SMEs in Hanoi Metropolitan areas and not all SMEs in Vietnam
- Scope of time: the data were collected from 8/2017 to 9/2017, the analysis was based on current data Suggestions are valid until 2020
* Secondary Data Collection: Secondary data will be collected through the
The thesis will incorporate data from GSO and previous research on Human Resource Management (HRM) in Small and Medium Enterprises (SMEs) It will also utilize various documents and resources, including books, dissertations, magazines, and online information, to gather insights on SMEs and their recruitment and selection processes.
* Primary data collection: Primary data collection methods are questionnaires surveys, expert indepth-interviews In addition, synthetic analytical methods will be applied
The questionnaire survey is the most important method in the study, which is described in detail as follows:
Sample size: 150 by random sampling
The study focused on small and medium-sized enterprises (SMEs) situated in Hanoi, with data including names, addresses, and telephone numbers sourced from the enterprise database available on the website thongtindoanhnghiep.co.
The design of questionnaires is aligned with the objectives of the thesis and theoretical framework, ensuring clarity and conciseness To guarantee accuracy, the questionnaire will be developed through a structured process.
Based on research objectives and frameworks to identify the information needed: factors, variables and metrics;
Determine the type of question;
Determine the content of each question;
Determine the terms used for each question;
Determine the logic of the questions;
Submit a questionnaire to the instructor;
Carry out pilot survey to receive feedback on questionnaires
The dissertation uses two methods of data analysis: qualitative and qualitative
- Statistical aggregation: Collected data and information collected, selected and statistical information needed
- Comparison: After collecting and analyzing the necessary data, comparison will be made over time
- Processing survey data using SPSS software 18.0
To evaluate scale reliability, the Cronbach Alpha coefficient is utilized, with a threshold of 0.6 or higher deemed acceptable for retention, as established by Nunnally & Bernstein (1994) Variables that exhibit an item-total correlation factor below 0.3 will be excluded from the analysis Therefore, this study mandates a minimum Cronbach Alpha of 0.6 for the scales to be considered reliable.
Assumptions for one-way analysis of variance (One-Way Anova):
- Comparative groups should be independent and randomly selected
- Comparative groups must have standard distribution: use the Kolmogorov- Smirnov test
To ensure the groups have equal variance, the Levene test is utilized This test assesses the null hypothesis (H0) that the variances of the groups are equal If the significance level of the test is below 0.05, the null hypothesis is rejected, indicating that the variances differ significantly.
If one of the above assumptions does not meet, the Kruskal-Wallis non- parametric test will be used instead of ANOVA Hypothesis:
- H0: There is no difference between the mean of the groups classified by variables
- H1: There is a difference between the mean of the groups classified by variables
+ Sig (2-tailed)> 0.05 is not sufficient basis to reject the Hypothesis H0 should accept Hypothesis H0, which means that the average value is different from the test value
+ Sig (2-tailed)