Outsouricing Employees’ Morale and Productivity

The study aims to determine the effect of outsourcing employee’s practices to the morale and productivity of employees in leading business industry of Iligan City during the calendar year of 2015. The study employed the descriptive research design. The 150 outsourced employees from the five (5) major manufacturing companies in Iligan City namely Holcim, Pilmico-Aboitz, Granex, Lafarge and Pryce Gas were employed as respondents. The respondents were made to answer the researcher-made questionnaire on employees’ profile and morale. Data on productivity were taken from the production department of the companies. Data were statistically analyzed using mean value and Pearson coefficient of correlation. Outsourced employees’ have a low morale due to the status of their employment, salary and benefits, company policies and management-employee relationship. These employees’ have low productivity for the same reasons. Law morale would result to low productivity. Status of employment, salary and benefits, company policies and management-employee relationship affect both employees’ morale and productivity.

Keywords: Employees morale, employees productivity, business practices, employer role, employee motivation