FACTORS AFFECTING ENTERPRISES' CHOICE OF LABOR OUTSOURCING

Abstract

In fact, many companies extensively use flexible employment methods such as labor outsourcing. For example, the services of platforms such as Meituan, Ele.me, and Didi mostly rely on labor outsourcing, which helps them become "light asset, high gross profit" technology-based enterprises. The number and proportion trend of listed companies that adopt labor outsourcing can be found on the website of China Industrial Economy (http://ciejournal. ajcas. org). In the past decade, the number of companies that choose labor outsourcing has rapidly increased. In 2012, there were only about 160 listed companies that adopted labor outsourcing, accounting for 7% of the total number of listed companies that year. In 2021, there were over 1300 listed companies that adopted labor outsourcing, accounting for 31%. Although the market size of labor outsourcing has shown a rapid expansion trend in practice, there is little research analyzing its causes.

Therefore, this study reviewed relevant literature and found that internal and external factors such as the length of time a company has gone public, ownership, board size, proportion of independent directors, shareholding ratio of the company's largest shareholder, cash holding ratio, company size, asset liability ratio, return on total assets, number of employees, salary level, social security and welfare level, GDP growth rate, regional population mobility, regional aging level, regional minimum wage standard, and regional average wage level all affect whether a company chooses labor outsourcing. However, the credibility of the impact of these factors and how their effects are still to be scientifically tested. Therefore, this study further organized the labor outsourcing information disclosed by listed companies by hand, constructed an econometric model, and further tested the impact of these factors on whether enterprises choose labor outsourcing, and drew relevant conclusions. The conclusion of this study will provide scientific recommendations for the labor outsourcing market in China.