April 22, 2026
Recruitment and selection in micro and small companies in the ABC Paulista region
Eduardo Meyer Moritz Moreira Lima; Juliana Moletta
Summary prepared by the ResumeAI tool, an artificial intelligence solution developed by the Pecege Institute focused on synthesis and writing.
The scenario of micro and small enterprises in Brazil reveals a vital importance for the sustainability of the national economy, as such organizations represent approximately 99% of active businesses in Brazilian territory (SEBRAE-SP, 2022). In the specific context of ABC Paulista, this relevance is accentuated by the industrial and logistical density of the region, where smaller companies comprise about 23% of the business fabric of the state of São Paulo. The socioeconomic dynamics of these organizations are intrinsically linked to their capacity for generating formal jobs, being responsible for more than half of the positions occupied in the country. However, despite this numerical magnitude, people management in these environments faces severe structural challenges, especially regarding talent attraction and selection processes. The scarcity of financial resources and the absence of specialized human resources departments create an environment where informality often prevails over strategic planning, directly impacting regional competitiveness (Silva, 2015).
Understanding human capital as a strategic asset is fundamental to analyzing the survival of these companies. According to human capital theory, investment in employees’ knowledge, skills, and health generates a direct economic return for the organization, increasing its productivity and innovation capacity (Becker, 1993). However, in the micro and small enterprises of ABC Paulista, it is observed that the valuation of this capital often clashes with precarious recruitment practices. The lack of a solid technical basis for identifying profiles suitable for the roles results in hiring based on subjective criteria, which compromises the alignment between the individual’s competencies and the business’s real needs. This phenomenon can be interpreted from the perspective of liquid modernity, where labor relations become volatile and the bonds between employer and employee are marked by fragility and transience (Bauman, 1999).
The ABC Paulista region, historically recognized for its prominence in the automotive and metallurgical sectors, is undergoing a period of productive restructuring that demands greater agility from companies in adapting to new market demands. In this scenario, sociability networks play an ambivalent role. While on one hand they facilitate the flow of information in an environment of geographical proximity, on the other hand, they can trap companies in cycles of personal referrals that limit the diversity and technical qualification of the workforce (Diniz and Martes, 2012). The predominance of informal selection methods, although seemingly functional in the short term due to low cost and speed, ultimately generates chronic problems of turnover and loss of productivity. The absence of integration with modern people management technologies exacerbates this situation, making talent retention difficult in a highly competitive market (Reeves et al., 2015).
The central objective of this analysis lies in investigating the recruitment profile adopted by micro and small enterprises in the region, seeking to identify predominant practices, the most valued selection criteria, and the main obstacles faced by managers. A reflection is proposed on how organizational structure and sector of activity influence the choice of labor acquisition methods (Ferreira and Almeida, 2020). Furthermore, it seeks to understand the impact of informality on team composition and operational efficiency. The justification for such a study is based on the need to provide subsidies for local managers to improve their hiring models, reducing costs associated with reprocessing and enhancing the strategic alignment of new employees with company objectives (Becker, 1993).
To achieve the proposed objectives, the investigation adopted a mixed methodological approach, combining quantitative data collection with qualitative discourse analysis. The research universe comprised 66 private small-sized companies located in the municipalities that make up ABC Paulista, covering the industry, commerce, and services sectors. The classification of organizations strictly followed the criteria established by the General Law of Micro and Small Enterprises, considering microenterprises as those with an annual gross revenue equal to or less than R$ 360,000 and small enterprises as those with revenue between R$ 360,000 and R$ 4.8 million. Statistically, the sample included establishments with up to nine employees in commerce and services, or up to 19 in industry for microenterprises, and from 10 to 49 employees in commerce or 20 to 99 in industry for small enterprises.
The data collection instrument consisted of a structured questionnaire applied through a digital form platform, in addition to detailed interviews conducted between April and June 2025. The collection period lasted for 45 days, ensuring adequate time for response maturation and participant adherence. In total, approximately 102 hours of recordings were accumulated, which were fully transcribed to allow for a thorough content analysis. The inclusion criteria for participating companies were: being formally registered and headquartered in the ABC Paulista region, fitting the category of micro or small enterprise, and having at least three years of continuous operation in the market, thus ensuring that the organization had already gone through complete hiring and adaptation cycles.
The data collection questionnaire was organized into five distinct thematic blocks to ensure the depth of the investigation. The first block focused on company characterization, addressing the time of operation in the market, the current number of employees, and the existence of a specific department or person responsible for recruitment activities. The second block investigated recruitment practices, inquiring about the methods used to attract candidates, the job posting channels, and the use of digital platforms. The third block was dedicated to selection criteria, analyzing the importance of previous experience, academic background, behavioral profile, and the influence of trusted referrals. The fourth block identified the challenges faced, such as the difficulty in finding qualified professionals and the perception of staff turnover. Finally, the fifth block allowed for free considerations about the future of people management in the organization.
The qualitative data analysis followed a rigorous process of organization, categorization, and quantification. Initially, a pre-analysis of the transcribed material was performed to identify patterns and recurrences in the managers’ discourse. Subsequently, the data were coded and grouped into thematic categories, such as informal recruitment through contact networks, lack of organizational structure for selection, and resistance to adopting technologies. The final systematization was carried out with the aid of electronic spreadsheets, allowing for the correlation between the interviewees’ statements and the quantitative data obtained. The entire process was conducted respecting the ethical principles of research, maintaining the confidentiality of the identity of companies and participants, as established in the free and informed consent term.
The results obtained reveal a business profile marked by youth and lean structure. It is observed that 46% of the participating companies have been operating in the market for less than one year, a figure that strongly contrasts with the mere 4.5% of organizations with more than 10 years of existence. This predominance of young companies suggests an environment of high volatility and a business mortality rate that deserves attention, corroborating the thesis of the structural fragility of micro and small enterprises in the region. Regarding the workforce, most organizations maintain between two and six employees, with 33% having only two employees and 26% having six. This small size directly impacts the division of labor, often overloading the owner with administrative and operational functions simultaneously.
One of the most alarming findings of the investigation relates to the people management structure. It was found that 90% of the companies surveyed do not have a department responsible for recruiting new employees. The absence of a human resources department or even a dedicated professional for this role implies that hiring decisions are made centrally by the owners or general managers, often without the support of technical tools or validated methodologies. This scenario of organizational disarray is one of the main factors contributing to the maintenance of informality in selection processes. When asked about the use of digital platforms, 95% of managers stated they resort to online means; however, a deeper analysis reveals that this use is often superficial and does not replace the reliance on traditional methods.
The investigation into hiring methods showed that referrals from acquaintances continue to be the dominant method, used by the vast majority of companies. Although social networks, such as Instagram and Facebook, and messaging apps, like WhatsApp, have gained ground in job postings (cited by 58% of companies), the final decision is heavily influenced by the candidate’s social capital. The use of institutional websites or specialized recruitment agencies is residual, reinforcing the isolation of these companies from more modern market practices. Managers justify the preference for referrals as a way to mitigate risks and ensure trust, given that the small work environment requires close interaction and loyalty, which they believe is more easily found in people recommended by their network (Santos and Carvalho, 2019).
Regarding selection criteria, prior experience in the field emerges as the most significant factor, with 47% of companies expressing a preference for candidates who already master the technical activities of the role. Interestingly, 35% of managers do not consider experience a disqualifying criterion, which may indicate an openness to internal training or, more likely, resignation due to the difficulty of finding ready-to-hire professionals. Behavioral profile and academic background present a technical tie in perceived importance, with about 50% agreement among respondents. However, when analyzing disagreement, it is noted that academic background is viewed with greater skepticism: 32% of companies do not consider it a priority criterion, a significantly higher figure than the 12% who devalue behavioral profile.
The analysis of agreement on selection criteria, measured by a perception scale, shows that opinions are balanced but reveal important nuances. Referrals from trusted individuals directly influence hiring decisions in a significant portion of organizations, confirming that the expected behavior in micro and small companies is based on social proximity. In environments with few employees, the impact of a wrong hire is proportionally much greater than in large corporations, leading to defensive behavior in managers. This search for security through personal referrals ends up creating an environment where technical merit and academic background are secondary to interpersonal trust, which can limit the company’s innovative potential (Moura et al., 2023).
The absence of formal steps in the hiring process is another striking characteristic, confirmed by 92% of companies. The process generally consists of an informal interview with the owner and immediate registration in the work card. This lack of methodological rigor is reflected in the challenges pointed out by managers: 77% of companies report facing significant difficulties in hiring qualified professionals. The paradox lies in the fact that, despite complaining about the lack of qualifications, companies invest little in methods that allow for objective identification of technical skills or in training programs that address candidates’ gaps. The main difficulty reported is the scarcity of candidates who meet the minimum requirements, followed by a low budget for advertising and internal disorganization to conduct the processes.
Employee turnover is perceived as a critical problem by a considerable portion of the sample. Although only six companies classified their turnover as very high, the majority placed this index between high and moderate levels. This instability in the workforce generates high hidden costs, related to the time spent on new recruitments, the adaptation period of new employees, and the loss of organizational knowledge. High turnover is a direct symptom of the precariousness of selection processes and the fragility of labor ties described by Bauman (1999). When hiring is based on subjective criteria and there is no clear alignment between the employee’s expectations and the company’s reality, the probability of early departure increases drastically.
The discussion of the results points to the urgent need for professionalization of people management in micro and small enterprises in the ABC Paulista region. Excessive dependence on informal referrals creates a vicious cycle of low attraction and ineffective selection. By prioritizing personal trust over proven technical competence, companies may be compromising their capacity for technological adaptation and innovation. Oliveira’s (2018) study on resilience in small businesses highlights that the ability to overcome crises is directly linked to the quality of human capital and the structuring of internal processes. Therefore, the informality detected in this investigation acts as a barrier to the sustainable growth of local organizations.
Furthermore, the resistance to adopting digital recruitment platforms strategically demonstrates a disconnect with global management trends. The use of social media for dissemination is a positive step, but without a profile analysis methodology, it generates a volume of candidates that managers cannot adequately process. The integration of data analysis tools and the adoption of evidence-based selection criteria could significantly reduce turnover and improve the quality of hires (Grove, 2020). Collaboration between companies, trade associations, and public qualification programs, such as those offered by the ABC Observatory (2023), emerges as a viable path to overcome the limitations of individual resources of each microenterprise.
The limitations of this analysis include the restricted geographical focus and the convenience sampling nature, which prevents the generalization of results to the entire national territory. However, the depth of the collected data offers a faithful portrait of the reality of the ABC Paulista region. Future research could explore the impact of mentoring programs for microenterprise managers on improving talent retention rates. It would also be relevant to investigate how the digital transformation accelerated by recent global events has altered small business owners’ perception of the need to formalize their people management processes. The continuity of academic debate on this topic is essential to strengthen micro and small enterprises as engines of regional development.
The social implication of this study lies in the valorization of the worker and the improvement of employability conditions in the region. Fairer and more transparent selection processes contribute to the reduction of discriminatory practices and the promotion of diversity in the workplace. By professionalizing recruitment, companies not only gain efficiency but also provide a more dignified and stable experience for citizens seeking entry into the local labor market. The strengthening of the ABC Paulista business ecosystem necessarily involves recognizing that people are the most important competitive advantage, regardless of the organization’s size (Gomes and Costa, 2021).
It is concluded that the objective was achieved, as the detailed analysis of the 66 companies allowed for the identification of a recruitment profile strongly marked by informality and dependence on personal referral networks. The investigation demonstrated that the absence of formal human resources structures in 90% of organizations and the prioritization of practical experience and interpersonal trust over academic training are factors contributing to high turnover and the chronic difficulty in finding qualified labor. The predominance of subjective selection methods reflects the organizational fragility of micro and small enterprises in the region, highlighting the pressing need for initiatives that promote the professionalization of people management and the integration of technological tools to increase the competitiveness and sustainability of the sector in the ABC Paulista.
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