Human Resources Outsourcing And Its Effect On Workers Welfare: A Study Of Commercial Banks In Nigeria (2009 – 2015)

ABSTRACT

Non-standard working arrangements in Nigeria labour system is becoming an

issue of concern. One of such arrangements is the Human resources outsourcing

which is gaining so much ground in Nigeria commercial banks. This is a

contemporary issue, which if not tackled on time would lead to degradation of

work and lack of dignity of labour. The study was on Human resources

Outsourcing and its effect on workers: A study of commercial banks in Nigeria

(2009 – 2015). This was with a view to understanding the effect of human

resources outsourcing on the employees welfare, employees career development

and progression, and employee-bank performance and productivity. The

sample of the study comprised of one hundred and eight outsourced staff drawn

from the six units of the three purposive selected banks, viz; Access bank,

Diamond bank and Fidelity bank. Multi-stage sampling method was used in

which simple random techniques was used in selecting the respondents who

were available and willing to participate. Out of the one hundred and eight

questionnaire distributed, ninety two were returned. The study utilised primary

data which were collected through questionnaire and researcher’s personal

observations. The data collected were analysed using simple percentage and Chi

square for testing of the hypotheses. The findings revealed that human resources

outsourcing is a form of exploitation by the capitalist banks. A situation

whereby these workers work for eleven hours under pressure and stress, and at

the end of the month would be given a meagre salary. No fringe benefits, no

overtime allowance, and so on. This practice is a modern day slavery caused by

the harsh economic condition of the country, and characterised by

unemployment. Human resources is so vital in the life of any organisation or

society, and so, should not be treated with levity. The study recommends that

government and stakeholders should be involved; first, to see how best the

economy of Nigeria should be revived so as to reduce or eradicate

unemployment, and second to make policies that would stop this practice as it is a threat to human resources development.