Date of Conferral
Doctor of Business Administration (D.B.A.)
Human resources (HR) outsourcing has become a norm that organizational leaders leverage as a strategic tool to achieve various business objectives. However, the outsourcing of specific HR functions generates unintended consequences and impacts the performance of internal staff. The purpose of this qualitative, descriptive multiple case study was to explore the strategies used by HR managers to mitigate the negative effects outsourcing has on HR staff performance. The conceptual framework underpinning this research was transaction cost theory. Data were collected from 6 HR executives with experience leading HR outsourcing initiatives in the financial services industry in the United States. Primary data were gathered by conducting semistructured interviews with a set of 8 consistent, open-ended interview questions. Data analysis involved coding of the interview transcripts and analysis of company documents provided by the participants to identify themes. Member checking and methodological triangulation enhanced the credibility of the study. Three themes emerged from the interviews with HR executives as key strategies for managing HR performance: training, communication, and performance management. The findings of this study may contribute to positive social change by providing best practices and strategies to increase the effectiveness of HR outsourcing by mitigating its impact on the performance of HR staff. Furthermore, the effective management of HR outsourcing decisions may increase employment stability, positively affecting the lives of HR staff, increasing the profitability of U.S. businesses, and contributing to a stable U.S. economy.