Assessment of Role of HR Outsourcing on Employees’ Satisfaction on Organizational Performance in Multinational Companies
Keywords:
Human Resource, Human Resources Outsourcing, Service Level AgreementAbstract
Purpose: The study aim was to assess role of human resource outsourcing on employees’ satisfaction on organizational performance in multinational companies. The study objective was to find out the role of HR outsourcing on employees’ satisfaction on organizational performance in multinational companies
Methodology: The study used descriptive statistics research design. The descriptive study targeted 15 multinational companies in Nairobi. Stratified sampling technique was used to select 60 employees from the multinational companies in Nairobi and structured questionnaires administered. Descriptive statistical analysis was conducted: frequencies, percentages, mean and standard deviation. Further, inferential analysis was conducted on variables of interest at 95% confidence level
Results: The study’s findings revealed that outsourcing temporary staff is more economical than handling them in house. Outsourcing did give time for the human resource department to concentrate on their core activities and improved overall organizational performance.
Unique contribution to theory, practice and policy: The study recommended that companies should outsource as it makes them flexible in meeting varied customers’ and organizational needs. However, not all human resource functions should be outsourced owing to risk predisposition and vendors should be carefully chosen owing to risk involved.
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