The relationship between recruitment and employee performance in selected microfinance institutions in Wakiso district. A cross-sectional study.

Abstract

Background:

Effective recruitment is foundational for securing a competent workforce in Microfinance Institutions (MFIs). This study assessed the relationship between recruitment practices and employee performance.

 Methods:

A mixed-methods approach was employed, utilizing a descriptive, cross-sectional survey design. Data were collected from 110 respondents (100 employees and 10 managers) from selected MFIs in Wakiso District using questionnaires and interviews. Documentary review supplemented the data. Quantitative data were analyzed using descriptive statistics and Pearson correlation.

 Results:

The sample was predominantly male (54.5%), aged 30-39 years (43.6%), held a Bachelor’s degree (56.4%), and had 2-5 years of experience (43.6%). Findings revealed poor recruitment practices, characterized by a lack of needs assessments (Mean=2.2), minimal formal advertising (Mean=2.3), and widespread nepotism (Mean=3.7). A moderate positive correlation was found between recruitment and employee performance (r = 0.436, p = 0.004), indicating that structured recruitment moderately enhances performance.

 Conclusion:

Recruitment practices in Wakiso District’s MFIs are largely informal and unethical, which moderately constrains employee performance.

Recommendations:

MFIs should develop clear job descriptions, utilize transparent merit-based recruitment methods, expand recruitment channels, and emphasize both technical and soft skills during hiring.