Employees' outsourcing perceptions and satisfaction : the case of Libya oil company

Abstract

Purpose: The aim of this study is to explore the perceptions of employees working for the Oil Transportation Department of Libya Oil Company regarding their future outsourcing and their current payment satisfaction. Design/Methodology/Approach : In fact, employees' power has increased dramatically and it cannot be ignored or neglected after the Libyan revolution in February 2011. Despite the fact that outsourcing improves performance, quality, and reduces costs, workers are usually significantly affected within the strategies considered by outsourcing. The literature shows that the employees affected in such outsourcing processes suffer from many problems. The effect of an aggressive culture, such as the Libyan context, on outsourcing employees requires more investigation. One hundred eighty-four workers, from two different operational sites, out of 300, participated in filling in the questionnaire regarding their perceptions of being outsourced to contractors. Findings: The results show that employees perceive outsourcing negatively, and the results indicate that there is a significant relation between the perceived outsourcing impact on individuals and on profession with their payment satisfaction. Practical Implications: Management should consider their employees' perceptions as well before outsourcing. Originality/Value: Executing the strategy of outsourcing employees to contractors seems to be difficult, if not impossible, in an aggressive working environment.