Factors Influencing Human Resource Outsourcing at Kenya Commercial Bank (Kcb) Limited

Abstract

In Sub Saharan Africa, organizations are undergoing serious human resource challenges that force them to look for optional ways to reduce costs and also ensure maximum output from the human resources used in an organization. This paper looks at the factors that influence the decisions to outsource human resources. The research report focuses on the on managerial decisions that managers under such an organization have to deal with so as to make the right decisions in the short and long run. Its objective was to explore functions of HR outsourcing and factors influencing HR outsourcing decisions. To carry out this, Kenya Commercial Bank (K) limited has been selected as the case study. A case study methodology gives deeper understanding to the study. Data was collected using an interview Guide which allowed respondents to give personal accounts of the study data. It was then coded, interpreted, presented and analyzed using Content analysis to give detailed qualitative findings of the study. The study found out that KCB bank has employed HR outsourcing functions in Cleaning, catering, security, IT networking, valuation, legal, training and development, recruitment and selection. On areas where outsourcing needs to be developed included the Call centers, transport and employee benefits and administration centers. All the managers were in agreement that improved service delivery will be promoted if the right outsourcing decisions were implemented. Business structure, cost and technical expertise were key factors that influenced decisions that management made to outsource human resource. The study recommends a robust technical team to oversee the Human resource Outsourcing process and implementation. This should be made in consultation with other stakeholders in the organization such that the implementation is successfully carried out. The study found it imperative for clear guidelines and framework to be drawn for effective and efficient decision making of human resource outsourcing.