Organizations are outsourcing Human Resource but only the activities and functions, which are very much essential to be performed. Most of the Organizations are unaware from the factual essence of this idea that it is very cost productive and helps to gain competitive advantage. The main objective of the study therefore was to examine the effect of Payroll outsourcing practices. The study was guided by Stacy Adam’s Equity Theory. This study employed explanatory research design the target population of the study was all employees of the 20 SACCOS in Uasin Gishu County. The accessible population is a subset of the target population where the researcher drew the sample size for the study. Therefore, the accessible population for this study was 227 employees working in the Savings and credit cooperative societies in Uasin Gishu County. The sample size were 145 employees. The study used purposive and simple random sampling to select respondents. Collected data was organised and edited to remove any inconsistencies, repetitions or errors that would have made analysis difficult. Descriptive and inferential statistics were used to analyse the data with the aid of the Statistical Package for Social Sciences (SPSS) version 25. Descriptive statistics included percentages, frequencies, mean and standard deviation. Inferentially correlations and multiple regression analysis were applied to get the change in dependent variable caused by the effect of independent variables. The study results revealed that payroll outsourcing practices has a significant influence on performance of Saccos (?=0.339, p<0.05). The study concluded that performances of employees are guaranteed since outsourcing ensures that the employees being paid are under payroll, there is up to date payment of employees, outsourcing does salary surveys and salary administration are ensured. The study recommends that the Saccos should always pay their employees under payroll, ensure that there is up to date payment and ensure that their salary surveys and salary administration for this will greatly influence the performance of Saccos.
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In-Text Citation: (Owino & Mandago, 2022)
To Cite this Article: Owino, A. A., & Mandago, R. (2022). Effect of Payroll Outsourcing Practices on Performance of Saccos in Uasin Gishu County. International Journal of Academic Research in Business and Social Sciences, 12(4), 533–542.
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