Retention Risks and Governance Strategies of Core Employees under Global HR Outsourcing Trends
Journal: Modern Economics & Management Forum DOI: 10.32629/memf.v6i3.4027
Abstract
The rise of global human resource (HR) outsourcing has significantly reshaped organizational talent strategies, particularly in how companies retain their core employees. As firms increasingly externalize non-core HR functions, the indirect impacts on core workforce morale, commitment, and organizational loyalty have become pronounced. This paper investigates the retention risks posed to core employees amidst this global trend and proposes governance strategies to mitigate such risks. Using case studies from multinational companies operating in Asia and survey data from HR professionals in China, this study finds that loss of internal development opportunities, decreased engagement, and blurred organizational boundaries are the primary causes of retention challenges. Governance strategies such as internal mobility programs, psychological contracts, and hybrid HR models are shown to be effective countermeasures. The paper concludes with implications for HR practitioners and policymakers in balancing cost-efficiency with talent sustainability.
Keywords
core employees, retention risk, hr outsourcing, governance strategy, globalization
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