Human Resource Outsourcing and Personnel Cost Reduction in Deposit Money Banks in Lagos State

Document Type : Research Paper

Authors

Department of Business Administration, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria

Abstract

Businesses are looking for ways to adapt to changes, improve their processes, and create profit, which is the primary aim of their existence, as a result of numerous causes such as globalization, natural disasters, disease outbreaks, and technological innovation. Businesses that want to achieve these goals look for practical ways that will improve their performance and long-term viability.
The purpose of this research is to evaluate human resource outsourcing and personnel cost reduction in deposit money banks in Lagos State. The study used a descriptive survey approach with 650 employees from selected money deposit banks in Lagos State. The primary data was collected using a questionnaire. Regression analysis was used to test the study's hypothesis. The study's findings demonstrated that business process outsourcing had a considerable impact on deposit money banks' performance in Lagos State.  According to the findings, human resource outsourcing has a significant positive relationship with personnel cost reduction. Based on the findings of the study, it was concluded that outsourcing business processes such as human resources will lead to positive effects and reduce personnel cost in deposit money banks in Lagos State. To obtain a competitive advantage, remain profitable, and achieve sustainable performance, deposit money institutions should outsource peripheral business functions and focus on their core strengths, according to the report.

Keywords

Management Studies and Economic Systems
Volume 7, 3/4
August 2022
Pages 49-58

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