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Offshoring and Outsourcing Effects on Employees

1. How do factors such as offshoring and outsourcing lead to employee fears and uncertainty

2. Author recommendations for alleviating such fears and uncertainty

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Offshoring and Outsourcing Effects on Employees

1. How do factors such as offshoring and outsourcing lead to employee fears and uncertainty

Employees fear the economic threat that outsourcing and offshoring will have on their lives as well as the uncertainty about whether they will be laid off next when a company begins outsourcing and offshoring sectors of their company. The employees believe that they will have less job satisfaction and this also leads to a feeling of being powerless in their job regardless of their work ethic or performance as outsourcing and offshoring placates cost savings above these two areas. Therefore, the employees begin to lack organizational commitment to the organization, which impacts organizational performance as the employees believe and fear that they don't have job security and that it is unfair that they could potentially have their jobs outsourced despite their job performance or longevity with the company. Many may even have intentions on quitting and finding other employment before their jobs can be outsourced as employees at companies that have already outsourced certain sectors within the organization have a greater fear of losing their job to offshoring and outsourcing.

The effect that offshoring and outsourcing has on employees is fear of job security and a negative attitude toward their employers that makes it more probable that ...

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Offshoring and Outsourcing Effects on Employees

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