Why is Human Resource Development a Win-Win Scenario for all Stakeholders - Example

Why is Human Resource Development a “Win-Win” Scenario for all Stakeholders? Introduction The Temporary Work (Skilled) (Sub class 457), popularly referred to as Visa 457, is an Australian visa arrangement that allows Australian businesses to import specific skills which are lacking in the local labor force. Although the scheme has potential benefits to business and other stakeholders, it has been a subject of debate in the recent past. Much of the debate has focused not only on how the program has been managed but also on the general subject of the effect of human resource development (HRD) on all the stakeholders (the government, employers and employees). This paper critically analyses why HRD is of benefit to all the stakeholders involved. To do this, a brief examination of different perspectives of stakeholders on the process of HRD is given. This is followed by a detailed examination of points of conflict between perspectives of the government, businesses and employees with regard to Visa 457 scheme in Australia. An overview of the scheme and a detailed analysis of differences in opinion regarding issues of controversy in the scheme are also given. Stakeholder Perspectives on Training and Development Training and development of employees is a complex process that entails different perspectives by the different stakeholders involved. Evans and Lindsay (2008, p. 270) note that HRM involves all activities which are designed to provide the HR needs of the organization, assisting in the design of work systems, training and development of the work force and lastly, acting as a form of liaison with labor unions and the government agencies. Since HRD (through training and other development programs) incorporates the interests of employees and the corporation on one hand and those of the employees through labor unions on the other, it follows that its practice is influenced by the perspectives of all the three stakeholders (the government, the management and the employees). Garavan (1995, p. 15) identifies four key drivers of HRD from the perspective of businesses. These are: the need to adapt to technological changes, challenges arising from new regulatory arrangements by government authorities, the effects of globalization upon mature and growing institutions and lastly, the need to increase the supply of resources as a result of demographic changes. These factors influence the approach of businesses towards training and development of employees. Since businesses, governments and employees pursue different interests in their operations, conflicts of interest are bound to occur in the course of their interaction. For instance, while businesses pursue their primary objective of making profits, regulatory agencies work for the good of the employees and the public. Evans and Lindsay (2008, p. 268) observe that the approach of businesses towards HRD is guided by cost-cutting measures. Businesses view HR training and development as a means of achieving the strategic objectives of the organization both in the short- and long-term. This is contrary to what the government as well as employee organizations view as the primary benefit of HRD. For governments, training and development of employees by organizations is an important process that plays a key role in developing a competent and skilled work force for the benefit of the economy in general (Garavan 1995, p. 12). For employees who form the major part of internal stakeholders, training is part of the necessary process of professional development. Points of Potential Conflict regarding Visa 457 Visa 457 is an Australian visa arrangement that grants work permit to immigrants in Australia. Originally referred to as Temporary Business (Long Stay), the title was changed to Temporary Work (Skilled) (Sub class 457). According to the Department of Immigration, Visa 457 is designed to offer residence services to skilled workers from outside Australia who have been sponsored and nominated by an Australian business to work in Australia on a temporary basis. For individuals to benefit from this arrangement, three key stages have to be satisfactorily completed by both parties. First, a potential employer applies to be a sponsor. Secondly, the employer nominates a position which is intended to be filled. Such positions are guided by a comprehensive list under the Consolidated Sponsored Occupations List. Lastly, a potential employee applies for a visa under specific legal provisions guiding this arrangement (Department of Immigration and Citizenship, 2013). Visa 457 has presented a number of challenges in its implementation and management. Since its operations cut across all sectors of the economy, it has been a source of conflict between all the stakeholders involved. Employee unions, government agencies and the managements of various businesses involved have had different perspectives in terms of how the scheme should be managed and whether its current mode of operation is beneficial to the general public or works against the interests of the Australians. Sharp differences in these perspectives have caused conflicts between various stakeholders in the scheme. Notably, different opinions concerning the management of Visa 457 have arisen on issues to do with abuse of the program by businesses and labor exploitation of immigrant workers. Whereas the first category directly affects the local workforce population, the second one has a direct impact on the beneficiaries of the scheme. The first point of conflict is the claim by the government (through the Ministry of Immigration) that the scheme has been used to discriminate against native Australians (Hugo 2006, p. 121). For long, the official government position has been that the young Australian population of job seekers has faced undue competition as a result of employees abusing the scheme by nominating positions which do not qualify to be nominated. Notably, although the provisions of the system require that only after all local options of filling a position are exhausted can skills from outsiders be sought, it has been observed that more often than not, employers flout the guidelines of nominating positions by proposing for skills which can be easily filled by the local population. Although the requirements of the program are that only highly skilled jobs are eligible for nomination, it has been claimed that many employers are masking less skilled jobs as highly skilled in order to qualify for nomination. For instance, semi-skilled jobs in the hospitality sector which can easily be filled by the local labor supply are labeled as “highly skilled” and nominated by employers for the program. This practice is in contravention of the legal provisions of the scheme, and works to discriminate against the local population. Further, Abela (2006, p. 14) states that there have been claims that leading industry players who have failed to comply with the legal provisions of the scheme have faulted for the manner in which local jobs are disappearing whereas the number of visa 457 applications continues to increase. Whereas local industries such as construction and hospitality are registering declines in jobs, there has been a considerable increase in the number of visa applications. It has also been observed that whereas applications for this class of visa have been declining concurrently with the slowing economy, visa applications for other sectors (like the hotel industry) have been on the rise. This is in contradiction to the economic realities which indicate a decline in spending in hotels as a result of global economic slowdown. The same scenario is witnessed in other sectors such as retail where a decline in the economic activity stands in contradiction with a sudden increase in the number of foreign staff hired to work in these sectors. The only explanation to these contradictory situations is that employers are abusing the entire program by failing to comply with all its regulations and provisions, thus discriminating against the local population in the process. Further, employee unions and business have differed on the question of whether the visa scheme has been used to abuse the rights of the local population by giving out jobs which can be easily filled by the local labor (Abela 2006, p. 28). This is an effect of global labor migration that has affected many other countries. For instance, it has been observed that many jobs under the category of “other services” in the Consolidated Sponsors Occupations List can easily be filled by local skills. However, businesses avoid hiring the local population because of the need to avoid hefty expenditures in terms of higher pay and training associated with the local workforce (Hugo 2006, p. 110). This is because the pay level for immigrant workers under the program has been on the decline whereas that of the local workers has been on the rise (Juss 2013, n.pag). This practice has raised ethical questions which bring to debate the justification of hiring employees from poor economies such as Nepal at the expense of the economic growth of such countries. Another major issue of concern regarding Visa 457 has been the claim by labor unions that many of workers who enter Australia under this program are subjected to labor exploitation. This form of exploitation differs from the traditional human trafficking abuses. Whereas the latter form of exploitation arises from the fact that the victims are a product of irregular immigration processes to fill low-skilled positions, exploitation of skilled immigrant workers is mainly labor related and occurs as a result of a combination of factors (Shelley 2007, p. 138). Juss (2013, n.pag), states that temporary workers in Australia under the visa 457 scheme have been subjected to exploitation in several ways. For instance, it is observed that most of the immigrant workers are underpaid as compared to their local counterparts. Further, many immigrant workers have reported repeated incidences of exploitation in terms of unlawful deductions from their minimum salaries. Such unlawful deductions cover expenses such as travel, medical and accommodation costs. Since on many occasions such deductions and charges are imposed on to the workers without their consent, such a practice amounts to exploitation. Further, it has been argued that immigrant workers in Australia face exploitation in the form of harassment, physical harm and racial abuse. The situation is complicated further by the fact that many of these workers are victims of a fraudulent process and as such, their rights and privileges are not safeguarded in the local legislation. Further, Juss observes that the immigrant status of many of these employees means that they are vulnerable to both labor and personal exploitation in the society as a result of lack of a welfare or method of accessing compensation from the businesses responsible. The point of conflict between the stakeholders involved regarding this issue has been complex. Governments, having realized that modern-day trafficking occurs in the context of exploitation of temporary immigrant workers, have turned to enforcing legislation meant to contain the situation of the visa scheme being used as an avenue for labor exploitation of workers from non-English speaking countries in low-skilled occupations (Kneebone & Debeljak 2012, p. 19). On the other hand, businesses have been of the opinion that increased dependence on immigrant labor is necessitated by a combination of two factors: the global economic trends and the demographic patterns of the country (Hugo 2006, p. 111). Conclusion The idea that HRD is a “win-win” scenario for all the stakeholders involved is true. In all scenarios of conflict of interest between different stakeholders, the consequence of the end result has always been for the benefit of all the stakeholders involved. For example, the controversy of whether the Visa 457 scheme in Australia is abused for the benefit of businesses at the expense of the local population has led to a number of legal reforms to streamline the process of issuing the visas. This has benefited all the stakeholders in different ways. The local population has a chance of accessing the local job market and benefiting from HR training and development programs by organizations. The government benefits by exercising increased control over the scheme and ensuring that businesses and the other stakeholders comply with all the legal requirements of the program. Also, by initiating mechanisms to discourage labor exploitation of immigrant workers, the government not only ensures that the credibility of the scheme is guaranteed but also solves the demographic problems of the local economy. References Abela, M 2006, “Global competition for skilled workers and consequences”, In Kuptsch, C & Fong, P E (eds) 2006, Competing for global talent, International Labor Organization (Institute of Labor Studies), Geneva, pp. 11-32. Department of Immigration and Citizenship (Australian Government) 2013, “Visas, immigration and refugees”, viewed 30 May 2013, Evans, J R & Lindsay, W M 2008, The management and control of quality, Thomson South-Western, Mason. Garavan, T N 1995, Stakeholder and Strategic Human Resource Development, Journal of European Industrial Training, Vol. 19, No. 10, pp. 11-16. Hugo, G 2006, “Australian experience in skilled migration”, In Kuptsch, C & Fong, P E (eds) 2006, Competing for global talent, International Labor Organization (Institute of Labor Studies), Geneva, pp. 107 - 154. Juss, S S 2013, The Ashgate research companion to migration law, theory and policy, Ashgate Publishing, Melbourne. Kneebone, S & Debeljak, J 2012, Transnational crime and human rights: Responses to human trafficking in the greater Mekong Subregion, Routledge, Abingdon. Shelley, T 2007, Exploited migrant labor in the new economy, Zed Books Limited, London. Read More