The Impact of Outsourcing External Recruitment Process on the Employee Commitment and Loyalty: Empirical Evidence from the Telecommunication Sector of Pakistan

Abstract

Recruitment process outsourcing is a powerful strategy used by many organizations globally which helps to save the cost, time and improves the quality of recruitment. Outsourcing HR, specially recruitment process is a strategy used by many organizations all across the world but the human side of HR has suffered from it along with the profitability because the external agencies are not well aware with the structure, culture, values and system of the organization and therefore fail to nurture commitment and loyalty among employees. Generally the impact of outsourcing is negative on the engagement and commitment of employees along with the loyalty. In the light of these issues, a study was planned to find out the impact of outsourcing recruitment process on employee commitment and loyalty. The sample was taken from the two private telecommunication companies: Huawei and Zhongxing Telecom Pakistan situated in Islamabad.Tools for data collection for the three variables that is outsourcing recruitment process, employee commitment and loyalty were taken from the body of knowledge and used for the collection of data. These two independent sets of data were analyzed by applying t-test. The empirical evidence indicated that outsourcing recruitment process has no impact on employee commitment and loyalty.