Influence of Recruitment on Organizational Performance of Custom and Border Organizations in Kenya

Influence of Recruitment on Organizational Performance of Custom and Border Organizations in Kenya

^*Ruth Nyamoko., Mary Mbithi., Gladys Kituku

School of Business and Economics, Kenya Methodist University

^*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2024.807025

Received: 10 June 2024; Accepted: 27 June 2024; Published: 27 July 2024

ABSTRACT

Enhanced recruitment strategies can substantially improve workforce quality, employee satisfaction, and overall performance. Although recruitment plays an important role in boosting organizational performance, many firms have yet to fully optimize their recruitment processes. This paper sought to examine the influence of recruitment on the organizational performance of customs and border organizations in Kenya. The study applied a descriptive research design. The population for the study was 481 employees of customs and border organizations in Kenya (The Kenya Revenue Authority, The Kenya Ports Authority, and The Kenya Airports Authority). Stratified random sampling was applied in addition to the Taro Yamane formula to come up with a sample size of 218 participants from top executive positions, middle management positions, and lower management positions. The study gathered data through questionnaires which were administered both physically and electronically. Data collected was analyzed through both descriptive and inferential analysis. Results revealed a β of 0.344 and a p-value of 0.001, between recruitment and the organizational performance of customs and border organizations in Kenya. The study concluded that recruitment had a positive and significant influence on the organizational performance of customs and border organizations in Kenya. The study recommended that customs and border organizations in Kenya should maintain and reinforce their emphasis on hiring a highly qualified workforce. The study also recommended prioritization of the recruitment of staff who have completed the necessary training. Additionally, the study recommended that organizations’ recruitment practices should be strictly merit-based to promote fairness and transparency. Moreover, the study recommended regular interpersonal and communication tests should be administered to ensure potential recruits possess the necessary soft skills. Besides the study recommended that it is crucial to ensure that job specifications and role descriptions are well-defined and communicated. Finally, the study recommended a thorough evaluation process to assess the capabilities of candidates for different positions, consistently applying this practice to select the best candidates to ensure alignment with organizational goals and ultimately enhance the overall organizational performance.

Key Words: Recruitment, Organizational Performance, Custom and Border Organizations, Kenya

INTRODUCTION

The current business environment necessitates firms to invest in their recruitment process if they are to compete effectively. Firms have realized the need to invest in human resources if they are to sustain their competitive edge in the market. Human resource planning is fast gaining traction in the world as firms seek to outdo each other in the market (Alhajjar, et al., 2020). Firms have to ensure they maintain a strong employer brand if they are to compete effectively in the labor market. Firms have realized that their success in the market is driven by talented individuals who use their competencies and abilities to drive their firms forward. The border organizations in Kenya rely on their employees to serve the citizens effectively. According to Ubah and Ibrahim (2021), an organization’s recruitment process is one of the best options for an organization to beat its rivals in the market. Firms are increasingly facing challenges in their recruitment processes, necessitating them to invest heavily in the process. Importantly, recruitment practices have become important drivers in the organization’s ability to develop, maintain, and enhance its competitive position in the market. The demand for talented employees has continued to increase in the market necessitating firms to ensure that they have the best recruitment models to wade off any competition in the labor market.

The recruitment process in an organization is designed to ensure that an organization can acquire the best talent in the labor force. Naz, et al. (2020) explain that the employee recruitment process does not end with the identification of the employees. It entails other aspects such as onboarding, mentorship, career development, leadership development and replacement planning, recognition, and the reward processes. As the competition for highly qualified employees intensifies, finding the right employees that fit the organization’s needs is becoming increasingly difficult. Importantly, attracting the right employees in the labor market requires firms to have a strong brand as employer (Anwar & Abdullah, 2021).

Managing talented employees around the globe has become a major challenge due to globalization which has opened up the labor market to international firms. The scarcity of highly talented employees is very high because organizations are competing for the same pool of employees worldwide. As such an organization’s recruitment process and its human capital development is considered a competitive edge enabling firms to compete effectively. Importantly, firms have to ensure that they maintain best practices in recruitment and sourcing of the best talents (Alhajjar, et al., 2020). Kamau and Omondi (2020) explain that firms that succeed in employee recruitment depend on local strategies for human resource acquisition while at the same time offering mechanisms for attracting global talents.

In Africa, the need for well-developed employees has gained attention in recent years. Most Chief executive officers (CEOs) have identified the need for a proper recruitment process to enable their firms to compete effectively in the market. Unfortunately, most firms have not been able to compete with global firms in attracting the best talent in the labor market. The continent has continuously lost its top talents to other countries such as the United Kingdom (UK), the United States of America (US), and France which have better recruitment processes. The problem of recruiting top talents is even worse in the public sector that have to compete with the private sector in the labor market. These organizations are highly underfunded implying that they are unable to invest in recruitment and talent acquisition programs such as in the private sector. Besides, corruption and nepotism in the public sector have been a major challenge in public organizations (Kaburu & Nzulwa, 2020).

The recruitment process in the Kenyan public sector is critical as it enables firms to acquire employees with the right professional skills and competencies (Soud, 2020). The employees are the greatest asset of any organization implying that acquiring the best talents in the public sector will enable these entities to serve the citizens effectively. However, this is not usually the case with public entities in Kenya such as the cross-border organizations. The recruitment and selection of employees in such organizations are influenced by political affiliations and tokenism. Well-qualified employees end up missing out on the selection process due to corruption and other unethical practices in the Kenyan public sector.

Recruitment

Recruitment is the process by which an organization identifies the requirements of the job and acquires the right candidate for that job. Firms achieve this by acquiring a pool of possible applicants who have the right skills, training, and expertise and then focusing on the individual with the best skillsets (Pessach et al., 2020). The recruitment process aims to identify a large pool of applications as possible to ensure the firm has the best talent for the available position. While the recruitment process may differ from organization to organization, all firms identify the critical role of recruitment to fill the positions in the workplace as essential for the survival of the firm (Nikolaou, 2021). Firms understand that success in the market will be fueled by the kind of talent in the workforce. As such, they ensure that they deploy every resource available during the recruitment process. While a good recruitment process increases productivity in the workplace, wrong recruitment causes major disruptions, lowers productivity, and may lead to interpersonal problems in the workplace.

According to Ubah and Ibrahim (2021) recruitment process in the organization starts with analyzing the requirements of the job to attract the right applicants. Firms shave systems and structures that enable them to attract people with the right skill sets, knowledge, and qualifications. The success of the workforce will depend on how effective its recruitment and selection process is. Firms with highly qualified employees can maintain a strong brand image in the labor market thus attracting the top talents in the labor market. The recruitment and selection practice in the firm also increases its performance in the market enabling it to sustain a competitive edge over its rivals.

Organizational Performance

Nasim, et al. (2021) define organizational performance as the ability of a firm to place itself in the business environment.  Organizational success can be measured by several metrics such as financial performance and the rate of employee satisfaction and customer satisfaction. An organization can have both short-term and long-term performance goals. A firm can register good performance in one area but have a negative overall performance. As such, firms need to ensure that their recruitment process can bring the right overall performance (Alhajjar et al., 2020). The overall performance of the firm is measured by gauging the actual performance with the intended objective of the firm. The measure of the actual outcome versus the intended consequences states whether the firm can acquire the required objectives or not. Performance management is a key role of the organization’s management as they have to ensure that their firm is achieving the intended goals.

The organization’s performance is directly affected by the type and nature of the employees in the firm. The quality of the employees is determined by the recruitment and selection process in the workplace. As such, the recruitment process has a direct impact on the organization’s performance. Importantly, highly successful firms devise considerable resources and energy to ensure that they have a robust recruitment process. A good recruitment process ensures that firms can overcome any challenge they may face in the market because the employees have the skills to succeed. A study by Alansaari, et al.  (2019) showed that the recruitment process in selected universities has a positive impact on their performances. Other studies have also shown that recruitment and selection are critical determinants of the firm’s performance in the market (Ubah & Ibrahim, 2021; et al., 2017).  This study seeks to examine the influence of recruitment on the organizational performance of customs and border organizations in Kenya.

Information about custom

The problem

LITERATURE AND HYPOTHESIS

The Human Capital Theory

The human capital theory was introduced by Gray Becker and Theodore Schultz in the 1960s (Anwar & Abdullah, 2021). The theory faced instant criticism at first due to its proposition that human beings are factors of production that can be optimized to increase organizational performance. However, the theory gained acceptance with time as firms started to reduce costs of production by investing in quality human capital. The theory of human capital has continued to gain more relevance at an individual and organizational level. As firms seek to compete in the market, the impact of quality human resource capital on an organization’s competitive edge cannot be understated (Ubah & Ibrahim, 2021).  Firms are investing in human capital to increase their productivity and achieve better performance. Developing the human capital with the required skills and competencies requires firms to invest in people’s education and training. Education and training help people to improve their abilities and increase their performance in the firm. As such, investing in human capital helps firms improve their performance by taking advantage of the employee’s cognitive skills.

The human capital theory enables managers to increase the performance of their firms by investing in the right recruitment practices for employees. According to Nasim, et al.  (2021), the most effective technique employed by managers to ensure they have the right skills in the workplace is ensuring that they have the right recruitment process in the firm. The recruitment process ensures that the vacant positions in the firm are filled by the most competent employees in the labor market. The human capital theory also helps managers invest in the right communication strategies that will improve the firm’s performance in the market (Kamau & Omondi, 2020). Managers can also use the human capital theory in the development of existing employees in the workplace. Human resource development has become a fundamental strategy for firms to compete in the global market.

Human capital development requires firms to invest in employee’s skills and expertise. As such, this theory will be very vital in explaining how Custom and Border Organizations in Kenya can leverage their recruitment process to improve their performance. The theory will help managers appreciate the role of employee development to ensure that the employees can match the current needs in the market. The theory explains how human resources managers can integrate the recruitment process, career development, leadership training teamwork, organizational culture, and professionalism in their workplace (Anwar & Abdullah, 2021). There is compelling evidence that improving the human capital in a firm improves innovation which in turn increases performance. Human capital management has been proven to have a positive impact on the organization’s success.

Empirical Literature                                                                   

Oaya, et al. (2017) explored the impacts of recruitment and selection strategies on employee performance by focusing on selected manufacturing firms in Nigeria. The study employed a descriptive survey research design. The inferential statistics used regression analysis to identify the relationship between recruitment and selection strategy in the firm and its impacts on the performance of these employees. The study showed that the use of recruitment agencies in recruitment, selection, and recommendations of employees ensures that firms can get committed and productive employees. On the other hand, the study noted that recruitment through the influence of host communities leads to inefficiencies in the recruitment process. This study recommends the use of recruitment agencies in the selection and recruitment to enable them to get the most qualified employees in the market. This study was carried out in Nigeria which has the same economic and political systems as Kenya. As such, the results from this research will be very critical in offering recommendations to customs and border organizations in Kenya.

Martins, et al. (2023) examined the role of recruitment on the effectiveness of an organization’s performance. Specifically, the study focused on how recruitment affects the organization’s finances, and employees’ satisfaction in the workplace. The research used a modeling technique of the systems dynamic approach. The study explored the non-linear interactions of the employee selection process over time. The data was collected on-field to model the recruitment process and its impacts on the organization. The study found that there is a positive relationship between the recruitment process and the organization’s performance. Importantly, the study noted that the recruitment process should be aimed at attracting employees who will help the firm achieve its strategic goals. The study recommends the use of training, orientation, and reward systems to ensure that new employees become familiar with the procedures in the firm. The main research gap in this firm is that it was carried out in Europe, which has different economic and social structures compared to Kenya.

Abdalla et al. (2021) examined the relationship between recruitment and selection and its impacts on performance in telecommunications firms in Turkey. The research used a quantitative survey design whereby a questionnaire was used to collect the data. Importantly, the study focused on how some attributes such as gender, culture, race, and qualifications impact the recruitment process. The data was collected from employees to enable the researcher to gain information from a diverse audience. The results revealed that there is a positive relationship between the recruitment process and the organization’s performance. Besides, the study noted that gender, race, and culture do not have any significant impact on the employee’s promotion in telecommunications firms. The study also noted that the use of application forms, assessment centers, psychometric tests, and interviews plays a crucial role in ensuring firms get the best talents in the market. This study recommends the use of several recruitment stages to ensure that firms get the best talents in the market. The main research gap in this study is that it was carried out in a telecommunication firm in Turkey implying that the results cannot be generalized in this current research.

Alansaari, et al.  (2019) examined the mediating effects of employee commitment on the recruitment process by focusing on the United Arab Emirates (UAE) firms.  The data in this research was collected from 247 employees in Fujairah UAE. The data was analyzed using the structural equation modeling using AMOS. The results showed that the recruitment process has a positive impact on the organization’s performance. The research uses employee commitment as the mediating role. The researchers recommended that human resource managers should invest in stringent recruitment processes to ensure that they acquire the best talents from the market. The main research gap in this study is that it was conducted in UAE which has different social and economic factors than Kenya. Therefore, the results from this study cannot be generalized to show how recruitment impacts the performance of border customs firms in Kenya.

DATA AND METHODS

Research Design: This study applied a descriptive research approach aimed to provide a causal depiction of organizations, people’s activities, events, and settings. Applying a descriptive research design, the researcher integrated the aspects of what, when, where, which, how, and also the question of why in a compulsory expedition to observe and describe the behaviors of a particular phenomenon. This approach enabled the researcher to investigate the influence of recruitment on the organizational performance of Customs and Border Organizations in Kenya. The target population was drawn from the Kenya Revenue Authority, the Kenya Ports Authority, and the Kenya Airports Authority, where the unit of analysis comprised 45 individuals in top executive positions, 152 individuals in middle management positions, and 284 individuals in lower management positions.

Sample and Sampling Methods: This study applied the stratified random sampling method and Taro Yamane’s formula to come up with the desired sample size. The formula is as given below:

n =N/ [1+ N(e)²] ………………….………………………………………………………. Equation (i)

Where;

n= Sample Size

N= Population Size (481)

e= Level of Precision (0.05).

The sample size was therefore implemented as follows:

n = 481 / [1 + 481(0.05²)] = 281.39, which was determined as 281 to the nearest whole number.

Data Collection Instruments and Methods: The study utilized questionnaires that incorporated closed-ended questions that were administered due to their convenience and cost-effectiveness in comparison to other methods of data collection. The questionnaires were administered both physically and online to gather data for the study. To ensure that the study collects reliable, error-free data, the instrument was subjected to pilot tests to establish its validity and reliability. The questionnaire was structured into sections to enhance construct validity outcomes and the Cronbach’s Alpha (r) Coefficient was employed to evaluate the reliability of these measurements and guarantee uniformity across different sections of the questionnaire ranging from -1 to +1.

Data Analysis: Primary data gathered was organized, edited, analyzed, and interpreted through both descriptive and inferential statistics. Descriptive statistics encompassed measures such as standard deviation, means, frequencies, and percentages.  Inferential statistics encompassed several key measures, including correlation, coefficient of determination, analysis of variance, and regression analyses with a significance level set at 0.05 to determine the influence of recruitment on the organizational performance of Customs and Border Organizations in Kenya.

Y=B0+B1+e……………………………………………………………………….…………equation (ii).

Where Y was the Organizational Performance of Customs and Border Organizations in Kenya, BO was the constant, B1 was the coefficient for recruitment and e was the error term.

RESULTS AND DISCUSSIONS

Response Rate: From a total of 218 questionnaires that were distributed both physically and online, 176 questionnaires were returned and used in coming up with the report, representing a response rate of 80.73%.

Descriptive Statistics

Descriptive Statistics on Recruitment

Table 1 revealed that participants agreed with the statement that their employment policy emphasized on employment of a qualified workforce indicated by a mean of 4.28. Besides, participants agreed with the statement that their organization was keen on employing staff that have undertaken the requisite training as shown by a mean of 4.13. Also, the participants agreed with the statement that their organization complied with recruiting practices that are merit-based indicated by a mean of 3.61. Additionally, respondents agreed with the statement that staff that was recruited at their organization must pass interpersonal and communication tests indicated by a mean of 3.93. Moreover, participants agreed with the statement that their organization had a recruitment plan for ensuring a constant flow of staff as shown by a mean of 3.82. Further, participants agreed with the statement that their organization had well-outlined job specifications and role descriptions for all job categories indicated by a mean of 3.63. Lastly, respondents agreed with the statement that candidates for different positions undergo an evaluation of capabilities indicated by a mean of 4.02.

Martins, et al. (2023) supported the findings of the study in an examination of the role of recruitment on the effectiveness of an organization’s performance. Specifically, the study focused on how recruitment affects the organization’s finances, and employees’ satisfaction in the workplace. The study found that there is a positive relationship between the recruitment process and the organization’s performance. Importantly, the study noted that the recruitment process should be aimed at attracting employees who will help the firm achieve its strategic goals with the study recommending the use of training, orientation, and reward systems to ensure that new employees become familiar with the procedures in the firm.

Table 1: Descriptive Statistics on Recruitment

Descriptive Statistics on Performance of Custom and Border Organizations in Kenya

Table 2 revealed that respondents agreed with the statement that their organization hired quite adequate employees to serve in all departments as shown by a mean of 4.02. Further, respondents agreed with the statement that their organization met annual fiscal targets from the amount of revenues collected indicated by a mean of 3.91. Moreover, participants agreed with the statement that the cash flows for the organization had been steady throughout as indicated by a mean of 4.14. Additionally, respondents agreed with the statement that their organization had undertaken projects successfully to enhance its capacities in revenue collection as shown by a mean of 4.10. Lastly, participants agreed with the statement that their organization was able to facilitate capacity-building programs for its staff, clients, and other stakeholders indicated by a mean of 3.99.

Table 2: Descriptive Statistics on Performance of Custom and Border Organizations in Kenya

Regression Statistics

Table 3 revealed that 12.9% of the changes in organizational performance of customs and border organizations in Kenya were explained by recruitment indicated by an r-square of 0.129. Other variables not included in the study explained 87.1% of the changes in the organizational performance of customs and border organizations in Kenya.

Further, the results revealed an F-statistic value of 25.868 with an associated p-value of 0.001, which suggests that the linear regression model applied by the study was a significant fit in predicting the organizational performance of customs and border organizations in Kenya.

Besides, the results revealed a beta coefficient of 2.643 and a p-value of 0.001 which indicates that the constant in the model was statistically significant in the prediction of the organizational performance of customs and border organizations in Kenya. Moreover, results revealed a beta value of 0.344 and a p-value of 0.001<0.05 between recruitment and organizational performance of customs and border organizations in Kenya which implied that recruitment significantly influenced the organizational performance of customs and border organizations in Kenya since the calculated p-value of 0.001 was less than critical chosen value of 0.05. The findings of the study are in agreement with the previously conducted study by Oaya, et al. (2017) who explored the impacts of recruitment and selection strategies on employee performance by focusing on selected manufacturing firms in Nigeria. The study showed that the use of recruitment agencies in recruitment, selection, and recommendations of employees ensures that firms can get committed and productive employees. On the other hand, the study noted that recruitment through the influence of host communities leads to inefficiencies in the recruitment process.

Table 3: Regression Analysis

1. Dependent Variable: Performance
2. Predictors: (Constant), Recruitment

CONCLUSIONS AND RECOMMENDATIONS

The study concluded that customs and border organizations in Kenya had employment policies that emphasized on employment of a qualified workforce. Additionally, the study concluded that customs and border organizations in Kenya were keen on employing staff that had undertaken the requisite training. Besides, the study concluded that customs and border organizations in Kenya complied with recruiting practices that are merit-based. The study also concluded that customs and border organizations in Kenya had staff that were recruited to pass interpersonal and communication tests. Moreover, the study concluded that customs and border organizations in Kenya had a recruitment plan for ensuring a constant flow of staff. The study also concluded that customs and border organizations in Kenya had well-outlined job specifications and role descriptions for all job categories. Furthermore, the study concluded that customs and border organizations in Kenya had candidates for different positions undergo an evaluation of capabilities. Lastly, the study concluded that recruitment significantly and positively influenced the organizational performance of customs and border organizations in Kenya.

The conclusions of the study are therefore in support of the human capital theory which revolves around the impact of quality human resource capital on an organization’s competitive edge. The theory suggests that developing human capital with the required skills and competencies requires firms to invest in people’s education and training. As such, investing in human capital helps firms improve their performance by taking advantage of the employee’s cognitive skills. The human capital model enables managers to increase the performance of their firms by investing in the right training and development of employees. Further, the theory emphasizes that the most effective technique employed by managers to ensure they have the right skills in the workplace is ensuring that they have the right recruitment process in the firm. The recruitment process ensures that the vacant positions in the firm are filled by the most competent employees in the labor market. Custom and Border Organizations benefit from this model because it helps them understand how employee empowerment techniques and effective human capital management improve their performance.

The study recommends that customs and border organizations in Kenya should maintain and reinforce their emphasis on hiring a highly qualified workforce. The study also recommends that customs and border organizations in Kenya should prioritize the recruitment of staff who have completed the necessary training, to ensure employees are well-prepared for their roles. Additionally, the study recommends that customs and border organizations’ recruitment practices should be strictly merit-based to promote fairness and transparency. Moreover, the study recommends that customs and border organizations’ regular interpersonal and communication tests should be administered to ensure potential recruits possess the necessary soft skills. The study also recommends comprehensive recruitment plans to guarantee a constant flow of staff, addressing both current and future staffing needs. Besides the study recommends that it is also crucial to ensure that job specifications and role descriptions are well-defined and communicated. Finally, the study recommends thorough evaluation processes to assess the capabilities of candidates for different positions, consistently applying this practice to select the best candidates. Through the adoption of these recommendations, customs and border organizations in Kenya can optimize their recruitment strategies, enhancing overall organizational performance and efficiency.

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