Research, Human Resources Outsourcing Decisions Based On Enterprise Value

Currently, many of the researches on the human resources outsourcing have focused on the activity itself. The overall and long-term impacts of the human resources outsourcing strategy on the enterprises have not been paid enough attention, thus resulting in the limitations of the perspectives of researches and results. Based on the theory of enterprise value, the paper studies the human resources outsourcing decision-making on the basis of maximizing the enterprises' value. According to the mainstream method of measuring enterprises' value, discounted cash flow method, the values of enterprises are measured by the future cash flows and the discount rate that characterizes the extent of the risks. In the human resources outsourcing decisions, outsourcing cost and the outsourcing risk are the two important dimensions of decision-making. Accordingly, based on the cost-risk decision matrix model of human resources outsourcing, the human resources management activities can be separated into three types, which are those that can be supplied by the enterprise itself, those that can be outsourced and those that can be supplied by enterprise or the outside suppliers. Further research of the paper shows that the influences of the degree of the outsourcing are two major factors, namely, the abilities of enterprises and the nature of the activities. Human resources management activities can be divided into different kinds under different circumstances. This decision-making method can effectively increase the values of the enterprises, and reach the goal of maximizing the value of enterprise.