Abstract

Purpose – The purpose of this paper is to explore what owners of small firms are looking for from new employees. The aim is to pursue this in light of the debate around formality and informality of small firm HRM, exploring the extent to which the small firms studied had formalised HRM practices.Design/methodology/approach – The data reported here were collected in discussions with the owner(s) of 27 small firms in the Latrobe Valley region of South East Victoria, Australia. These firms were participating in the federal government‐funded small business assistance program and data were gathered through a series of visits and discussions with the owners over the period of the assistance program.Findings – It was found that in those firms where they had formalised HRM practices, which linked directly to their strategy, employers were more able to “sell” their vision for the business to potential employees.Research limitations/implications – Research has shown that there is a positive relationship between sma...

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