Outsourcing to trusts: a social exchange analysis of the employee experience

The outsourcing of public services often involves public sector workers transferring their employment to a private or non-profit company, yet little is known about what this transition is like for the employees themselves. This thesis investigates the employee experience of ‘being outsourced’ in the public leisure sector, which is an under-researched area, and concentrates attention toward the implications for the employment relationship. The research draws on social exchange theory as way of conceptualising the employment relationship and henceforth explores changes to it during the process of outsourcing. The research is primarily based on three longitudinal case studies (leisure services outsourced to Leisure Trusts) which includes the collection of 85 semi-structured interviews. In general, the findings suggest that the pre-transfer experience of outsourcing is likely to be a difficult emotional process to go through, with post-transfer implications including the worsening of terms and conditions and less than expected developmental opportunities. Yet, despite the difficulties of the transition, the findings also challenge the notion that the longer-term post-transfer implications are ‘all negative’ for employees, especially with regards to the quality and socioemotional side of the employment relationship – however these latter outcomes seem to be heavily dependent on the values and managerial style of the Leisure Trust managers, as well as any changes made to terms and conditions. Key Words: The Employment Relationship; Social Exchange Theory; Public Service Outsourcing; Leisure Trusts; Critical Realis