Business Process Outsourcing and Employee Satisfaction in Nigerian Commercial Bank

Audu, Peter & Oluwoyo, J. Temidayo


Much adore has been placed on customers’ satisfaction, without much credence to the supplier of the service in which the success and growth of any business entity is dependent on. With liberalization of activities within the Nigerian banking sector, the need for proper deployment of man-power to run banks efficiently has becomes inevitable hence Employers consider using outsourcing for a number of perceived benefits ranging from critical enormous function of managing Human resources, its cost implication, the complexity and constraints toward achievement of its deliverables. however, a critical element often neglected in outsourcing business processes is the employees’ satisfaction. It is based on the foregoing that the study navigates business process outsourcing and its effect on bank employees satisfaction based on Karl Marx theory of surplus labor. Primary Source of data was employed collected via proportional stratified sampling technique, analyzed using t-test, ANOVAs and Ordinary Least Square Regression Model. It was revealed that most of the business processes within the banking sector are outsourced with the organization having compromised control over the functions that are outsourced, faced with diminished outsourced staff morale and motivation couple with Increase employees’ insecurity which often constituted enormous corporate menace and Impaired the Organizations’ ability to integrate process. Outsourced staffs are disenchanted, disenfranchised, discriminated and disregarded in terms of promotion, Job security, Income security, fringe benefit and motivators consequently concluded that business process outsourcing has adverse effect on employee satisfaction in the banking industry. Banks should however outsource the performance of a function, not the responsibility while the welfare of the outsourced staff should be jointly determined under the deeds of contract also the wide gap in the income between Core staff and Outsourced Staff should be bridged and determined based on the indices of Wage differential such as working experience, academic qualification, productivity etc.