A Phenomenological Study of Outsourcing and Employee Relations Management in Lagos State, Nigeria

Abstract

The objective of the research is to examine the relationship between outsourcing and employee relations management. Researchers in the past have emphasised why companies should outsource based on cost savings and gaining a competitive edge, while others focus on the assumed unpalatable effects of outsourcing. Nevertheless, the impact of outsourcing on the relationship between labour and management has long been understudied. This research used a survey design with a sample size of 100. Responses from 63 employees of the selected organisations comprising twenty-five (25) from outsourced employees and thirty- eight (38) from full-time employees. The data was acquired using a convenience sample approach and analysed using descriptive and inferential statistics. The hypotheses were tested using Chi-Square(X2) with a significance threshold of 0.01. The study established a significant relationship between outsourcing and employee relations management, and the elements that influence outsourcing decisions, which are cost savings, corporate focus, and access to world-class expertise, impacted labour-management relations in organisations. Based on the findings, it was recommended that organisations must find a way to outsource non-core activities, using outsourced individuals who can do it better, thereby focusing on core business operations where they have an edge and can outperform their competition while also managing employee relations through better remuneration, communication, leadership, training and job stability.