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Professional Employer Organizations and Their Impact on Client Satisfaction With Human Resource Outcomes: A Field Study of Human Resource Outsourcing in Small and Medium Enterprises
Increasingly, small and medium enterprises are outsourcing human resource (HR) activities to professional employer organizations (PEOs). The authors draw on social network theory, transaction cost economics, and social exchange theory to examine how; PEO and client characteristics moderate the impact associated with outsourcing human capital-enhancing HR services. Results from a study suggest that using a PEO for human capital-enhancing services was positively related to HR outcomes and that this relationship was stronger when a weak-ties service delivery model was used, client receptivity was high, and the PEO contract was more detailed.
Human resource outsourcing and organizational performance in manufacturing firms
Considerable anecdotal evidence suggests that an organization's use of outsourcing will have an influence on its performance. However, few empirical examinations of the outsourcing-performance relationship have been conducted. In this study, we analy; ze the relationship between the outsourcing of human resource (HR) activities, namely training and payroll, and firm performance. In addition, we hypothesize that the outsourcing-performance relationship is not the same for all firms. As a result, we test for the potential moderating effects of firm size. Our sample consists of 94 manufacturing firms representing 16 two-digit SIC code industries. Results indicate that both training and payroll outsourcing have implications for firm performance.However, findings regarding a moderating effect of firm size were inconclusive.
Increasingly, small and medium enterprises are outsourcing human resource (HR) activities to professional employer organizations (PEOs). The authors draw on social network theory, transaction cost economics, and social exchange theory to examine how; PEO and client characteristics moderate the impact associated with outsourcing human capital-enhancing HR services. Results from a study suggest that using a PEO for human capital-enhancing services was positively related to HR outcomes and that this relationship was stronger when a weak-ties service delivery model was used, client receptivity was high, and the PEO contract was more detailed.
Human resource outsourcing and organizational performance in manufacturing firms
Considerable anecdotal evidence suggests that an organization's use of outsourcing will have an influence on its performance. However, few empirical examinations of the outsourcing-performance relationship have been conducted. In this study, we analy; ze the relationship between the outsourcing of human resource (HR) activities, namely training and payroll, and firm performance. In addition, we hypothesize that the outsourcing-performance relationship is not the same for all firms. As a result, we test for the potential moderating effects of firm size. Our sample consists of 94 manufacturing firms representing 16 two-digit SIC code industries. Results indicate that both training and payroll outsourcing have implications for firm performance.However, findings regarding a moderating effect of firm size were inconclusive.