Human Resource Outsourcing: Long Term Operating Performance Effects From The Providers Perspective

Human resource (HR) outsourcing research has primarily focused on the client with little attention paid to the service provider. As an initial step in understanding this important stakeholder in the HR outsourcing relationship, this study focuses on the financial performance of HR service firms that...

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Bibliographic Details
Published inJournal of applied business research Vol. 26; no. 5; pp. 77 - 85
Main Authors Butler, Maureen G, Callahan, Carolyn M, Smith, Rodney E
Format Journal Article
LanguageEnglish
Published Laramie The Clute Institute 01.09.2010
Subjects
Cost reduction
Economies of scale
Employment agencies
Experimental economics
Financial performance
Human resources
Human resources service firms
Hypotheses
Long term
Outsourcing
Personnel selection
Profit
Profit maximization
Profitability
Profits
Recruitment
Service industry
Studies
Suppliers
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Summary:Human resource (HR) outsourcing research has primarily focused on the client with little attention paid to the service provider. As an initial step in understanding this important stakeholder in the HR outsourcing relationship, this study focuses on the financial performance of HR service firms that publicly announce outsourcing contracts. From the provider’s perspective, we investigate firm performance changes subsequent to outsourcing contract announcements, using a sample of 94 publicly available press releases. Our tests show that in the long term, small HR service providers contracted by large client firms experience improvements in operating profitability and margins.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
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ISSN:0892-7626
2157-8834
DOI:10.19030/jabr.v26i5.320