Corporate Payroll Outsourcing Decision-making Model

Nowadays, high administrative costs and high degree of repeated jobs are often existed within many enterprises in the process of managing Compensation & Benefits. How can the enterprise optimize the assorted internal and external resources and make full use of them? A new type of Human Resource Management strategy named Compensation & Benefits outsourcing answers this question. C&B outsourcing played a significant role in transferring the Human Resources Management from traditional affairs to strategic status, as well as enhancing core competence of the enterprise.Based on the theories of core competences, transaction costs and so on, this study tries to find research gaps via decision-making dimensions in existed outsourcing models. This study also tries to build a bridge between theory and practice, and to construct a conceptual model concerning large-sized and medium-sized enterprises in China. As we know, outsourcing gradually becomes a great managing method for the enterprise to achieve core competence. However, existed studies were mostly concentrating on the whole process of HR Outsourcing, just conceptions, motivations, advantages and disadvantages on C&B outsourcing. Guidance for the practice of operational C&B outsourcing decision-making process, methods, models are far from enough. Only a small amount of study in this area included in the decision-making for Human Resources Outsourcing are somewhat too theoretical and non-operational. They cannot perfectly solve the problems existing in the outsourcing decision-making process of C&B, which will not meet the demand for many enterprises. This study will build a comprehensive and systematic outsourcing decision-making model for C&B in order to improve the validity of the C&B function, which can also adapt to the HR development trend, and can bring maximum value to the enterprise.