Human Resource Outsourcing Research Articles

Emerging Trends and Their Impact on Human Resource Outsourcing

The present paper focuses on different types of HR outsourcing and the elements which need to be considered before a company goes for outsourcing of Human Resources Functions. Design/Mythology/Approach: A review of available literature was done in order to understand how present HR firms offer a wide variety of services to organizations that need to focus on their core business activities and still establish and maintain good HR polices and to explore the factors that influence the HR Outsourcing decision with special emphasis on a proper cost benefits analysis of HR outsourcing. Findings: The finding of the paper intimately point out that the decision of HR Outsourcing is contingent upon factors like flexibility, availability of adequate resources, affordability and acceptability etc., the paper also suggests a systematic process and certain per-requisites to successfully execute HR Outsourcing.

Human Resource Outsourcing and Performance of Deposit Money Bank in Anambra State, Nigeria

The study investigates human resources outsourcing and performance of deposit money bank in Anambra State, Nigeria. Four research questions and four hypotheses guided the study. Relevant conceptual, theoretical and empirical literature were reviewed taking cognizance of the problem of the study. The study is anchored on resources-based view theory of outsourcing. Survey research design was adopted in this study. The study was carried out in Anambra State. The population of the study comprised of 2633 employee of money deposit bank in Anambra State, Nigeria, while the sample consists 517 employee of money deposit bank in Anambra State. Borg and Gall was used to obtain the sample size. Face and content validity method was used to ensure validity of the instrument. The reliability of the instrument was achieved through test re-rest method and Cronbach’s Coefficient of 0.73 was obtained. Simple percentage analysis was employed to answer the research questions. Linear regression analysis was used in testing the hypotheses. The result of the analyses showed that human resource outsourcing for reduction of cost has a significant positive effect on return on net profit of deposit money bank. Human resource outsourcing for employee competence has a significant positive effect on return on owner equity in deposit money bank. Human resource outsourcing for knowledge transfer has a significant positive effect on operational effectiveness in deposit money bank in Anambra State Nigeria. Therefore, the study concluded that human resource outsourcing has a significant positive effect on the performance of deposit money bank in Anambra State Nigeria. The study recommended that banking industries should offer better terms of service and proper training to help improve employee competence and reduce costs of outsourcing its human resources functions for better performance. Banking industries should outsource only necessary aspects of business to avoid reduction in profit levels. Banking industries should investigate background check before knowledge transfer outsourcing and organizations should have a backup system to avoid losing vital data as a result of incompetence on the part of the external supplier.

Human Resource Outsourcing in Bangladesh: An Empirical Study

Human Resource Outsourcing in Bangladesh: An Empirical Study

Outsourcing Strategies and Human Resource Performance in Tea Manufacturing Companies in Rwanda: A case of Ekaterratearwanda Limited

The objective of this research was to study the human resource outsourcing practices among tea manufacturing companies in Rwanda. With specific objective being, To determine the influence of outsourcing strategies and recruitment process on human resource performance at Ekaterra Tea Rwanda Limited, to assess how outsourcing strategies on employee benefits management influence human resource performance at Ekaterra Tea Rwanda Limited and To establish how outsourcing strategies influences employee relations and human resource performance at Ekaterra Tea Rwanda. All the tea manufacturing companies were targeted population of 100 respondent from the factories. The research design to be used was description survey and data was collected from one of the tea manufacturing company operating in Rwanda called Ekaterra Tea Rwanda Ltd. The respondents were comprised mostly of Management team and supervisors with experience in various departments. Questionnaires using semi structured questions were used to collect data. Primary data were collected from the respondents and were supplemented by secondary data from journals, magazines and supplements and analyzed using descriptive statistics such as frequencies, mean scores, standard deviations and percentages. The findings were presented in form of tables. The sample population of 80 determined using Slovin‘s formula were used. Simple random sampling were used to identify the people to answer questions. At Ekaterra tea manufacturing company, study used purposive sampling method to interview top managers of the project in order to get detailed information of the subject matter. Data were collected by using questionnaires, interviews and documentary sources. Using the statistical package for social sciences (SPSS), the collected data was presented using tables and figure while interpretation and analysis were done based on percentages, mean and frequencies of respondents views. The data was also analyzed using correlation techniques and regression technique. In summary, the information provides key statistics to assess the performance of a regression model. The R² value indicates that the model explains approximately 28% of the variance in the dependent variable, and the adjusted R² adjusts for the number of predictors. The standard error of the estimate provides information about the typical prediction error in the model. These statistics help in understanding the model's goodness of fit and its ability to explain the variation in the dependent variable. Keywords: Outsourcing, Human resource management, Outsourcing Strategies, Recruitment process, Employee’s benefits, Employee’s relations.

In search of organizational strategic competitiveness? A systematic review of human resource outsourcing literature (1999–2022)

Human resource outsourcing (HRO) has been an important development in the HRM function since the 1990s as organizations seek cost reduction and competitive advantages. Does HRO enhance organizational competitiveness and strategic capability? Based on a systematic review of 97 journal articles published between 1999 and 2022, we identify several key patterns of existing research on HRO, such as a heavy reliance on quantitative methods, the dominance of traditional economic theories, and a focus mainly on the perspective of client organizations. However, whether HRO services can accomplish organizational strategic capability remains equivocal. To unpack the relationship between HRO and organizational performance, we establish an HRO process model which includes several blocks: HRO decision, HRO implementation, HRO perception, HRO evaluation, and HRO maintenance. Among these blocks, there is a dynamic interplay between multiple stakeholders across fields. We call for future HRO research and practice to pay attention to employee perception to enhance HRO’s effect and value as part of strategic human resource management, thus extending HR system strength theory. We also call for future research to clarify the contextual role of emerging technology in promoting HRO, given the increasing use of digital technology and HR data analytics.

Benchmarking HR outsourcing literature: a critical literature review

This study synthesises more than 20 years of human resource outsourcing (HRO) empirical studies to answer research questions related to determinants of HRO decision. Using grounded coding technique adapted from Lacity et al. (2010), empirical papers published from 1997 to 2018 were coded. Two theoretical models emerged from the findings where the existence of definitional ambiguity, findings and competing theoretical perspectives which underlies HRO research were identified. This study offers insights from past HRO studies to help HRO researchers to better understand HRO phenomenon. It is acknowledged that coding technique neither generates statistical diagrams nor infographics, but it provides valuable insights for the overview of literature within the area of human resource outsourcing. Being the first HRO literature review that uses the grounded coded technique, this paper answers three research questions while laying important foundation for theory development.

Analysis of the Impact of Human Resource Outsourcing on the Effectiveness of the Human Resource Function, Nairobi, Kenya

This research explored the impact of outsourcing human resource activities on the effectiveness of the human resource function in HR departments in firms registered with the Institute of Human Resource Management (IHRM) in Nairobi, Kenya. The study was anchored on The Transaction Cost Economic theory which emphasizes minimization of resource cost either through concentrating on core competencies and subcontracting other non-core areas of operation or subcontracting even their primary activities to others that can perform them less resource costly thereby earning some returns which is in form of the difference between the value of the contract and the cost of its execution. The target population of the study was 259 HR departments of firms registered with IHRM.  Non-probability purposive sampling was used in selecting the respondents who are HR department’s representatives. A sample size of 72 organizations. The data was analyzed using both descriptive and inferential statistics through computer based Statistical Package for Social Sciences (SPSS). The study findings showed that training & development outsourcing and compensation outsourcing had significant and positive effect on the effectiveness of the HR function. However, recruitment outsourcing had insignificant effect on the effectiveness of the HR function. In addition, the vendor characteristics moderates the relationship between recruitment outsourcing and Effectiveness of the HR function (β =. 314, ρ< .05), relationship between training outsourcing and Effectiveness of the HR function (β = .550, ρ< .05), relationship between compensation outsourcing and Effectiveness of the HR function (β = 0.419, ρ< .05). Thus, the study concludes that training & development outsourcing and compensation outsourcing are vital HR outsourcing activities in improving the effectiveness of the HR function. Therefore, the study recommends that firms should do a thorough cost-benefit analysis before outsourcing recruitment as the impact was not significant. Keywords: Human Resource Outsourcing, Human Resource Function, Human Resource Management, Recruitment, Compensation.

From Recruitment to HR to Manufacturing Outsourcing: A Narrative Research

Though the outsourcing concept and industry is a couple of decades old, the emergence of human resource outsourcing to a principal employer is a fairly recent phenomenon. In this case, human resources are provided by a third party vendor for various requirements. Earlier, non-essential services were in scope but hiring contractual employees for business critical functions such as manufacturing, quality, and others have started emerging. The functional split has created opportunity for outsourcing service providers. Various literature have argued about the pros and cons of such a practice from short and long term perspectives and mostly from the principal employers point of view. Research is inadequate from the point of view of outsourcing service provider. Through this narrative research we understand the entrepreneurial and operational perspectives of outsourcing service provider. The mismatch between the demand for skilled employees and availability creates opportunity for this sector. However, benefits to the principal employer, service provider, and employees remains a mismatch. Presence of contractual and permanent employees, salary and compensation, career progression and competency building, productivity and morale of employees are likely to become complex to manage. We call for additional research to understand the changed organisational dynamics due to this emergent practice. Entrepreneurs in this sector also need to configure their value proposition from various services and complexities involved.

Human Resource Outsourcing and Skill Variety of Outsourced and Core Staff: Evidence from the Nigerian Banking Industry

In Nigerian banking industry, Human Resource outsourcing has grown beyond the externalisation of auxiliary activities to include core activities. The consequences of this practice on employee skill variety are rarely discussed in the industry. This study therefore, investigated the skill variety of outsourced and core staff in Nigerian banking industry with evidence from Bank X, Southeastern region. Survey research design was adopted. Bank X was purposively selected due to its reputation for employing outsourced staff in its core banking operations while its branches in Abia, Imo and Enugu States were randomly selected. All 352 workers in the three States comprising 218 outsourced and 134 core staff were enumerated. Mixed methods were used to collect data while descriptive statistics and Chi square at p<0.05 alpha level of significance were used to analyse data. Outsourced staff had less variety in their tasks compared to the core staff. They had less opportunities to acquire additional skills and were required to utilise fewer skills in the course of their work, leading to low skill variety. Their employment status by implication deprived them of human capital investment either privately or corporately. Mode of employment was significantly associated with skill variety.

The Perspectives Of Business And Of Cost Issues That Are Considered In Strategic Sourcing From Malaysian Organizations

This paper analyzes human resource management techniques, including human resource outsourcing, and the size of the human resources organization. One of HRM techniques is defined as "facilitation," "accumulation," and "utilization." To meet the needs of HR outsourcing, the data for the report was compiled from feedback from 232 entities, which included 113 organizations participating in the outsourcing process. The results indicate that companies focus on outsourced HR functions while they have an emphasis on employee empowerment and performance improvement through facilitative management strategies. Concurrently, companies use HR contracting, which often leads to a decrease in the scale of the HR staff. Therefore, it is of critical importance that the organisations conduct thorough and thoughtful exploration of outsourcing of HR within their organizations. The level of HR functions within the company is anticipated to be significantly diminished if HRM strategy is pursued as an Outsourcing helps their consideration of HR departments to get ahead of HRM strategies.

EFFECT OF OUTSOURCING ON EMPLOYMENT RELATIONS IN NIGERIA: A STUDY OF SHELL PETROLEUM PRODUCING AND DEVELOPMENT COMPANY

This study investigates the effect of outsourcing practice on employment relations in Multinational Corporations with special focus on Shell Petroleum Producing and Development Company (SPDC). The study also examined the importance of employment relations in organizational performance. Descriptive research methodology was adopted in this study. The questionnaire that was administered in the field survey was the abbreviated version of Hewitt’s Human Resource Outsourcing Survey Questionnaire. The research findings showed that: the management of SPDC engages in unfair labour practices in order to trivialize workers conditions of service; mere transferring human resource management to a third party does not necessarily improve labour-management relations; outsourcing affects workers’ performance in Nigeria; there is positive relationship between employment relations and organisational performance. Based on the research findings, it recommends that the management of SPDC must discontinue its unfair labour practices; should improve the working conditions of its contract staff and show more interest in their career development; should focus attention on fostering mutual employment relations by ensuring that all its human resource policies are not counter-productive especially its outsourcing policy.
 
 JEL: L20; L23; L53
 
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Human Resource Outsourcing, Employee’s Turnover Intentions and Performances in a Mediatory Moderated Framework

Purpose: HR outsourcing has led to many challenges; one of them is higher turnover intentions. The bigger challenge is to find out how outsourcing contributes to turnover intentions. For this, we proposed a theoretical framework identifying the role of different factors contributing to this relationship. We proposed that HR outsourcing decrease Motivation among employees, also affect their Job Satisfaction, it further leads to strained Employee Relation as well as lower Commitment among employees. We also hypothesize that employees with higher Qualifications and Experience have a more profound effect on outsourcing and turnover nexus. Design/Methodology/Approach: The empirical validity was established by conducting a survey using a close-ended adopted questionnaire gathered from 200 employees working in different sectors of Pakistan. Data were analyzed using confirmatory factor analysis and structured equation modeling. Findings: The result fully supported our theory and showed that human resource outsourcing increases the employee’s turnover intentions through the mediatory role of Motivation, Job Satisfaction, Employee Relation, and Organizational Commitment. We also found a significant complementary effect of Qualification and Experience on outsourcing turnover relationship. However, the effect of Qualification on performance was not substantiated. Practical Implication: From a practical standpoint, the results may guide the development of human resource management policies and practices aligned with the reality and the needs of outsourced employees, thus fostering their motivation, job satisfaction, employee relation, organizational commitment, performances, and reducing turnover intentions. Originality/Value: This is a novel attempt to combine these diverse factors into a structural model in order to better assess the outsourcing turnover relationship. Moreover, on the empirical side, no such study was undertaken in the Pakistani context.

Human resource outsourcing: the impact on organizational learning

Purpose The construct of Organizational Learning has been studied through various perspectives but still there is a dearth of literature on how the organization’s outsourcing activities impact the learning process, specifically human resource outsourcing. This paper intends to link these two concepts. Design/methodology/approach Several research articles related to Organizational learning and outsourcing have been read and reviewed. Based on the understanding from the literature the insights are summarised and discussed. Findings This paper demonstrates linkage between organizational learning and human resource outsourcing by putting forth the impact human resource outsourcing can have on organizational learning from both positive and negative lenses. Originality/value Not many studies have established the linkage between two important constructs- Organizational Learning and Human Resource Outsourcing. This paper intends to bridge this gap in the literature by highlighting both positive and negative aspects of HR Outsourcing on the learning capabilities of the organizations.

Impacts of Outsourcing Activities on Banking Industry Performance in Nigeria

The paper empirically examined impacts of outsourcing activities on performance of banks in Nigeria using data from twenty banks with fifty respondents selected from each bank. The findings emanated from this research exercise concluded that outsourcing has no effect on profitability and personnel cost of the bank but increases stock prices and also service delivery, hence, the study concluded that there is significant relationship between outsourcing activities and bank performance and that outsourcing is a strategic tool in the activities banks in Nigeria. The paper recommends and advice Banks to improve their outsourcing activities, operations and organizational performance. Banks should involve in Human resource (HR) outsourcing so as to take advantage of the use of expert services as well as to capitalize on the outstanding quality that external firms provide in performing the human resource (HR) functions.

Útvistun verkefna á sviði mannauðsmála á Norðurlöndum

Markmið greinarinnar er að bera saman umfang útvistunar á sviði mannauðsmála meðal fyrirtækja og stofnana í Danmörku, Finnlandi, Íslandi og Svíþjóð. Varpað er ljósi á umfang útvistunar á kjarnaverkefnum og umsýslu- og rekstrarverkefnum. Umfangið er borið saman milli landanna fjögurra og það greint á Norðurlöndum í heild eftir þremur meginatvinnugreinum. Gagna var aflað meðal forsvarsmanna mannauðsmála í alls 797 fyrirtækjum og stofnunum í löndunum fjórum. Niðurstöður sýna að norræn fyrirtæki og stofnanir útvista í meiri mæli rekstrar- og umsýsluverkefnum á sviði mannauðsmála en faglegum kjarnaverkefnum. Íslensk fyrirtæki útvista almennt í minni mæli en skipulagsheildir í samanburðarlöndunum. Algengast er að verkefnum er snúa að eftirlauna- og lífeyrissjóðsmálum sé útvistað, en breytilegt er á milli landa hvort útvistun launavinnslu eða útvistun upplýsingakerfa á sviði mannauðsmála komi þar á eftir í umfangi. Í fagtengdum kjarnaverkefnum er þjálfun og þróun helst útvistað í einhverjum mæli. Fyrirtæki og stofnanir í heilbrigðis-, velferðar- og skólamálum og opinberri stjórnsýslu útvista í minni mæli en aðrar greinar. Útvistun launavinnslu er umfangsmest í Finnlandi og í þjónustugreinum þegar Norðurlöndin eru skoðuð í heild.

Understanding Human Resource Outsourcing in Indian Context

Understanding Human Resource Outsourcing in Indian Context

Virtual Team Leader Communication: Employee Perception and Organizational Reality

Based on a study of leader communication effectiveness conducted in a large human resource outsourcing firm, this article reports how virtual team members’ perceptions of their leaders’ effective use of communication tools and techniques affect team performance outcomes. The study also investigates the role that trust plays in moderating the relationship between virtual team members’ perceptions of their leaders’ effective use of communication and team performance. Analysis of 458 responses from 68 teams found a positive relationship between virtual team members’ perceptions of leaders’ effective use of communications and team members’ perception of their team’s performance. The study also found that trust strengthens the relationship between perceived leader communication effectiveness and team performance results. Last, the study also revealed serious organizational alignment issues between what team members perceived to be effective leader communication, their perception of team performance outcomes, and the organizations performance measured by a balanced scorecard.

Human Resource Outsourcing: A Competitive Strategy

Human Resource Outsourcing: A Competitive Strategy

Human Resource Outsourcing in Banking Sector: Case Study of UBA Bank-Guinea

This paper is a mixture of desk and field study. The paper focused on Human Resource Outsourcing in Banking sector looking at UBA Bank of Guinea. Based on literature review and empirical evidence corrected through inter-views from UBA Bank officials, the paper defines outsourcing concept, and highlights impact of outsourcing on organization, and on employees. The re-searcher then delves in issues areas looking at Human resource models, and then highlights strategic reasons advanced for outsourcing; while discussing economic reasons for outsourcing, vendor selection and decision making in outsourcing process. The paper concludes presenting factors that may influ-ence human resource outsourcing decisions.

Analysis of human resource outsourcing with regards to competitiveness of organizations

Analysis of human resource outsourcing with regards to competitiveness of organizations