A survey of human resource outsourcing practices by Blue Chip companies in Kenya
Mumbi, Purity W
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This study explores and describes the current state of the HRO practices by Blue Chip companies in Kenya from the HRO service buyer point of view. it was conducted through a census in blue chip companies listed on NSE; establishing the human resource outsourcing practices of the blue-chip companies in Kenya and the study also aimed at determining the challenges the blue chip organizations face in procuring HRO service providers. Data was collected using a semi-structured questionnaire, whose analysis was done using descriptive statistics. The response rate was 55%, and all the respondents indicated that they are all outsourcing HRO. It found that training and development, recruiting and job description and job evaluation, expatriate administration, employee relocation and out placement are the human resources functions highly outsourced by most of the blue chips companies in Kenya Anxiety about losing control over the process and layoff, disruption of businesses in case of a dispute, loss of control over outsourced processes are among the challenges that face Blue chip companies in Kenya. At present, the main drivers to outsource HR functions are greater competence/ efficiency and the cost savings. Most organizations ensure lIRO success by evaluating their HRO service providers (HROSP) and monitoring service contracts. Despite these efforts, some of the organizations indicated that at some point, they had to either change HROSP or cancel HRO contracts bringing HR functions back in-house, as a result of poor service levels and/or drop in competitive levels.