The Challenges of Human Resource Outsourcing and Its Impact on Job Security: A Study of Flour Mills in Sokoto State
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Background of the Study
Human resource outsourcing (HRO) is a strategic approach adopted by organizations to enhance operational efficiency and focus on core business functions. It involves delegating HR functions such as recruitment, payroll, and training to external service providers (Belcourt, 2023). In Nigeria, HRO has become a popular practice, especially among large firms like Flour Mills, which aim to reduce costs and improve service delivery.
However, HRO poses significant challenges, particularly regarding job security for employees. In Sokoto State, where unemployment rates are high, outsourcing raises concerns about job loss and employee morale (Okafor, 2024). This study investigates the impact of HRO on job security, focusing on Flour Mills as a case study.
Statement of the Problem
While HRO offers cost and efficiency benefits, its impact on job security remains a contentious issue. Flour Mills in Sokoto State has increasingly outsourced HR functions, raising concerns among employees about job stability and career growth. Studies have shown that perceived job insecurity can lead to reduced employee morale, increased turnover, and decreased organizational commitment (Olayemi, 2025).
This study addresses the critical need to balance the benefits of HRO with its implications for job security, particularly in regions with high unemployment rates like Sokoto State.
Objectives of the Study
- To identify the challenges of HR outsourcing in Flour Mills, Sokoto State.
- To assess the impact of HR outsourcing on employee job security.
- To propose strategies for mitigating the negative effects of HR outsourcing on job security.
Research Questions
- What are the challenges of HR outsourcing in Flour Mills, Sokoto State?
- How does HR outsourcing affect employee job security in Flour Mills?
- What strategies can mitigate the negative effects of HR outsourcing on job security?
Research Hypotheses
- There is no significant relationship between HR outsourcing and job security in Flour Mills.
- HR outsourcing significantly affects employee morale in Flour Mills.
- Organizational policies do not significantly mitigate the impact of HR outsourcing on job security.
Scope and Limitations of the Study
This study focuses on Flour Mills in Sokoto State, examining the challenges and implications of HR outsourcing on job security. Limitations include access to organizational data, employee cooperation, and the generalizability of findings to other industries.
Definitions of Terms
- HR Outsourcing (HRO): The process of delegating HR functions to external service providers.
- Job Security: Employees' perception of the stability and continuity of their employment.
- Employee Morale: The overall attitude, satisfaction, and outlook of employees within an organization.
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