OUTSOURCING HR ACTIVITIES FOR ORGANIZATIONAL EFFICIENCY IN SELECTED FIRMS IN LAGOS, NIGERIA

A firm’s strategic outsourcing is a practice driven by inefficiencies in the HR department to free up valuable resources to focus on core areas of operations. This study examined firms’ strategic outsourcing decisions in payroll management, recruitment and training to achieve HR goals. Resource-based view (RBV) was adopted to explain the impact of HR outsourcing on competitive advantage. Descriptive statistics and multicollinearity with variance inflation factor (VIF) were used to find the accuracy of the data set. The hypotheses were evaluated with the use of Multiple Regression Analysis. Findings revealed that outsourcing payroll administration to achieve HR cost efficiency significantly enhances organizational efficiency (Beta = 0.684, P<0.05), outsourcing recruitment activities for effective HR development significantly enhances organizational efficiency (Beta = 0.629, P<0.05), and outsourcing training for effective HR flexibility significantly enhances organizational efficiency (Beta = 0.579, P<0.05). The study concludes that outsourcing is an organizational culture that enables the achievement of HR cost efficiency, HR development and HR flexibility. It recommends that the company should continuously commit to outsourcing payroll functions to maintain confidentiality in remuneration, cut costs, have a competitive advantage and focus on the core business of the firm. The company should continuously outsource the recruitment process to sustain talent management and increase organizational efficiency and competitiveness among firms in the market. Outsourcing training services should be a priority for the firm to achieve progressive satisfaction with potential cost saving, competence and enhance knowledge and skills of workers to improve workers' capabilities and performance in the organizations.