Abstract
There has been an increase in the number of recruitment agencies in Ghana over the years. The aim of these recruitment agencies is to create the perfect fit between companies and individuals looking for job opportunities. This service is how ever rendered by Human Resource Management (HRM) department in the companies.
The company has the option of choosing between the two methods when recruiting: using the services of recruitment agencies or maintain their recruitment activities in-house.
The research investigates the viability of recruitment agencies in Ghana to establish how efficient and effective their services rendered are. Through exploratory research, the recruitment requirements of companies in Ghana Club 100 (2011) and the factors that influence the choice of method adopted were established.
The research discovered that, majority of companies in the sample use the in-house recruitment method mainly because it satisfies the recruitment requirement of the companies.
It is recommended that the recruitment agencies concentrate on the factors that mostly influence the decision made by companies when choosing a recruitment method to adopt. The companies in Ghana Club 100 (2011) were advised to try the services of the recruitment agencies and determine the gap they could fill in their company to contribute to its success.
Table of Contents
DECLARATION…………………………………………………………………………… i
Abstract………………………………………………………………………………….. iii
Table of Contents……………………………………………………………………… iv
Chapter 1………………………………………………………………………………… 1
Introduction to Research…………………………………………………………….. 1
1.2.1 Recruitment in Contest…………………………………………………. 3
Chapter 2………………………………………………………………………………… 8
Literature Review………………………………………………………………………. 8
Chapter 3……………………………………………………………………………….. 17
Research Methodology and Methods………………………………………………………………….. 17
- Chapter Overview……………………………………………………………………………………. 17
Chapter 4……………………………………………………………………………….. 23
Primary Data Collected and Analysis……………………………………………. 23
Chapter 5……………………………………………………………………………….. 35
Recommendations and conclusions……………………………………………… 35
5.1 Introduction……………………………………………………………………. 35
Bibliography……………………………………………………………………………. 41
Appendix………………………………………………………………………………… 44
Appendix 1: Questionnaire for companies………………………………….. 44
Appendix 2: In- House Method: Recruitment Requirement for In-house
…………………………………………………………………………………………………………………………… 48
Appendix 3: Both Methods: Recruitment Requirement…………………. 48
Chapter 1
Introduction to Research
1.1 Chapter Overview
Unemployment in Ghana has increased from 6.5% in 2008 to 8.5% in 2010 (Appiah-Kubi, 2011). The government has found it necessary to find solutions to this problem. This is because, the country has lost some of its most important components of growth such as consumer spending, which is the portion of household spending used to purchase basic necessities (Duly, 2003). An increase in unemployment means a decrease in taxes received by the government through consumer spending which will also affect the individuals. Individuals want to satisfy their desire for their basic needs as stated in Maslow‟s Hierarchy of needs. This natural drive in my view forces them to indulge in social vices such as armed robbery and theft which will make the economy unattractive in the long run.
In accordance to Section 5 of the Labor Act, “Every person has the right to work under satisfactory, safe and healthy conditions, and shall receive equal pay for equal work without distinction of any kind”. For this reason, the government has initiated activities such as the Aviation training school which is to provide the necessary skills and training for individuals to increase their opportunity to gain access to employment opportunities Awolukutu (2012). The government also introduced the National Youth Employment Program (NYEP) now known as the Ghana
Youth Employment and Entrepreneurial Development Agency (GYEEDA) during Kuffour‟s administration in its quest to reduce unemployment among the youth and also increase youth development to increase the ability of the youth to have access to the job market (Zaney, 2012).
Private individuals have also pioneered the establishment of recruitment agencies to solve this unemployment issues. These agencies attempt to create a „perfect‟ mapping of jobs to individuals in the country. They act as a link between individuals and the firms with vacant positions. Recruitment agencies are perceived to satisfy the requirement in Section 3 sub section 1 of the Labor Act 651, by helping individuals to find work under satisfactory, safe, healthy conditions and also to receive a salary for it. This research however seeks to identify whether recruitment agencies are able to satisfy the need for the „perfect‟ mapping, or whether companies are better of performing this activity?
