Abstract
The proficient Human Resource Management of employees and their contribution to small business is commonly accepted as contributing to Australia's future prosperity (Schaper, 2000). Effective recruitment, selection and retention of employees are part of the employment relationship and can enhance work performance and contribute to business success (Compton and Nankervis, 1998). Effective recruitment and selection has regularly been associated with positive retention and performance outcomes. However, this centre of attention has rarely focused on family-owned small businesses. This is reflected in the paucity of literature relating to family-owned small business, especially in rural and regional areas of Australia. The research objectives were to understand the variables and dynamics of the recruitment, selection and retention process. This study focused on mixed research design. The triangulation firstly examined the literature. Then quantitative exploratory research investigated the recruitment, selection and retention activities in family-owned small businesses in rural and regional areas of Australia. Constructs were developed from the quantitative study. Qualitative semi-structured interviews tested the constructs to complete the 13-phase procedure used in this research.