Two Families Under One Roof: The Role of Social Identity and Organizational Justice During Backsourcing

Backsourcing, the process of reclaiming previously outsourced services and reintegrating them into public organizations, has garnered increasing attention in the field of government contracting. While prior studies have emphasized fiscal and efficiency outcomes, limited research has explored its human resource implications, particularly its impact on employees. This study examines the experiences of backsourced employees (contracted managers transitioning to public service roles) and traditional public servants in South Korea. Through 27 in-depth interviews conducted at Veterans Service Centers and a nationally representative survey of public servants, findings reveal in-group/out-group conflict between two different groups of employees. The conflict stems from perceived differences in entry routes (meritocracy vs. political agendas) and dissatisfaction with task-reward alignment, leading to issues of social identity and organizational justice. This study highlights the critical need for fair procedures and equitable rewards to foster employee integration and mitigate conflict during personnel reforms involving backsourcing.