Effects of human resource outsourcing on service innovation in public sectors

Abstract

To deal with a lot of public services, first-level human resources are largely required in governmental institutes. The changes of industries and employment structure have the government, in consideration of budgets and downsizing, apply Human Resource Outsourcing and introduce temporary employees to reduce labor personnel costs and labor flexibility and to solve the demands for temporary and non-core businesses for achieving the innovation of administrative services and organizational reform as well as enhance organizational competitiveness. Acquiring expected and stable temporary employees with favorable work performance is a dilemma for personnel units. By distributing and collecting questionnaires on-site, 230 copies of questionnaires were distributed to the superiors and public servants in various sectors of Kaohsiung City Government. A total of 169 valid copies were retrieved, with the retrieval rate of 73%. The empirical results show partially positive effects of Human Resource Outsourcing on Service Concept, Customer Interface, and Delivery System in Service Innovation, significantly positive effects of Human Resource Outsourcing on Technology Option in Service Innovation, and remarkable moderating effects of background variables on the correlations between Human Resource Outsourcing and Service Innovation.