Trust predictors in outsourcing relationships in human resource management

MÓNICA SOFIA HENRIQUES, JOSÉ BERNARDO KEATING, & ANA LUÍSA VELOSO

 

Abstract

The purpose of this paper is to specify and test factors that predict trust in suppliers on human resource outsourcing relationships. The study identify six main issues that contribute to inter-organizational trust in this context: (1) accuracy in negotiations and shared information, forms of treatment and price fairness (2) fulfilment of the contract, deadlines, tasks and promises (3) alignment with objectives, business and customer’s culture (4) detection and resolution of problems (5) monitoring, flexibility and adaptation to unforeseen circumstances and (6) partner’s reputation. The study also analyses a contingency variable – the type of service – which affect the relevance of trust. The main findings of this study indicate that providers of HR services should pay attention to both levels of contractual performance and adjustment issues. And, moreover, that the type of human resource service is likely to play a contingency role in inter-firm relationship, with higher levels of trust existing in high performance HR practices.

 

Keywords

Inter-organizational relationships, inter-organizational trust, human resource management, human resource outsourcing, human resource services.

 

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