Factors Influencing Human Resource Outsourcing By Small and Medium-Scaled Enterprises in Nigeria

The lack of proper management of the human resource difficulties faced by small-scale businesses can affect the business negatively and affect the growth of the business. In managing the Human Resource problems faced by small-scale businesses, outsourcing Human Resource functions may be considered. This study examined some of the factors that influence outsourcing of human resource functions by small, scaled entrepreneurs in Nigeria. This study used structured questionnaires to collate primary data from 100 employees purposely sampled from selected SMEs located in Ikorodu, Lagos state Nigeria. Simple descriptive statistics like frequency count, means, and percentage were used in data analysis. The responses from the participants were presented using tables and charts. This study found that effective activity coordination between company and vendor is important in HR outsourcing and is a critical factor for SMEs outsourcing. Also, adequate performance feedback is a factor to be considered in SMEs HR outsourcing. This study recommends that SMEs should embark more on human resource outsourcing strategies to attain the benefits of cost savings/restructuring, which results in better customer service and profit?