A COMPARATIVE STUDY OF RECRUITMENT PROCESS OUTSOURCING AND EMPLOYEE RETENTION IN PHARMACEUTICAL INDUSTRY OF KARACHI

Abstract

Purpose- Major aim of this study was to draw a comparative analysis of effectiveness of Recruitment Process Outsourcing and Employee Retention in the Pharmaceutical industry of Karachi. There has not been a lot ofresearch done in this area to understand the importance ofthis outsourced function in the Pharmaceutical industry especially in the context of a developing metropolitan city like Karachi. Methodology/sample- Data was gathered from a sample oftwenty respondents from four different pharmaceutical companies - two multinational and two national companies - using a data collection questionnaire constructed on a Likert Scale type for noting their preferences regarding their experiences and practices. Findings- Results reveal that there are differences of approach in the Recruitment Process Outsourcing of the national and multinational pharmaceutical industry housed at Karachi. The practice and policy of national companies lack meaning, purpose and understanding of the outsourced business process and have issues of internal politics effecting the process inputs and outputs. While multinational pharmaceuticals have a much better Recruitment Process Outsourcing function with a strategic and systematic approach but with a relatively less concern for employees. Practices of both sub-sectors are linked with employee retention through a model developed by the researcher based on the conceptual and theoretical framework ofthe study. Practical Implications- The study can help the industry to devise improved mechanisms for engaging third party recruiters, evolving contextual training and orientation programs and refining the terms of reference for business process outsourcing with a strategic notion for the long-term benefit of the company yielding less employee turnover and cost & time saving in terms of resource mobilization for new employee orientation and employee retention.