Migrant workers on temporary 457 visas working in Australia ...

bs_bs_banner

Asia Pacific Journal of Human Resources (2014) 52, 77–92

doi:10.1111/1744-7941.12018

Migrant workers on temporary 457 visas working in Australia: implications for human resource management Susanne Bahn Edith Cowan University, Australia

In this paper data was collected in 2012 for a study concerning the employment of skilled workers on temporary 457 visas in the Western Australian resources sector. While workers came from numerous countries in order to meet the sector’s skill shortages, issues relating to workers from the Philippines were prominent due to the difficulties they reported. These difficulties included: skill recognition; workplace and community integration challenges, and deficiencies in their family members’ English language ability. The experiences of workers on 457 visas from other countries are compared with those of workers from the Philippines. Interviews with key stakeholders from a sample of resource sector firms that employ Filipino workers on 457 visas and agencies that support their integration are also reported. The purpose of the paper is to highlight the HRM implications of employing migrant workers on 457 visas, especially Filipino workers, to facilitate successfully adaption to Australian workplace culture. Keywords: visas

Australian resources sector, Filipino labour, HRM, skilled migrants, workers on 457

Key points 1 HRM professionals need to budget for time and costs to assimilate workers on 457 visas. 2 Workers from the Philippines require additional cultural support to settle into working in Australia. 3 Assimilation strategies include drawing on community and using migration and relocation services.

In 2011–12 Australia experienced a shortage of workers for many professional roles on major resources projects, e.g. engineers and project managers (AWPA 2012). These shortages were particularly evident in Western Australia (WA) which had a 3.6 per cent unemployment level in July 2012; the lowest of all Australian states (DEEWR 2012). With Correspondence: Dr Susanne Bahn, Senior Lecturer, School of Business, Centre for Innovative Practice, Faculty of Business and Law, Edith Cowan University, 270 Joondalup Drive, Joondalup, WA 6027, Australia; e-mail: [email protected] Accepted for publication 18 July 2013. © 2014 Australian Human Resources Institute

Asia Pacific Journal of Human Resources 52

historically minimal interstate net migration to WA (DIAC 2012a), skill shortages were most prominent and were offset with skilled migration schemes. Skilled migrants, with a skill recorded in short supply on the Consolidated Sponsored Occupation List 2012 (DIAC 2012b), can be employed on 457 visas for up to 4 years with an option to move to permanent residency after two years, if sponsored by their employer. Holders of 457 visas are known as temporary skilled migrants. In Australia, as of 30 June 2011 there were 72 030 visa holders on 457s reported (DIAC 2012a). Between July 2011 and January 2012, 9 080 457 visa applications were approved, representing 0.4 per cent of the total WA population (DIAC 2012a; Huddleston, Huddleston and Tonts 2012). While temporary migrant workers come from many places, the top 3 countries of origin of WA migrants were the United Kingdom, the Philippines, and South Africa respectively, accounting for a combined 61 per cent of the total WA 457 intake (DIAC 2012a). Workers from the Philippines are currently actively sourced to meet specific resource sector skills shortages in trades and engineering roles because of their skills and availability (ABS 2012). In this paper data collected from a 2012 study, compares the experience of 24 workers from a range of countries (England, Ireland, South Africa and Malaysia) to those of six workers from the Philippines. The Filipino workers formed a distinct group in terms of their perceptions of working in Australia and their relationships with other workers compared to the remainder of the sample. The interview data is analysed in terms of human capital theory. Human capital theory argues that education increases workers’ skills and that increased skill levels lead to improvements in individual and organisational productivity. In turn, higher productivity is rewarded with greater earnings (Becker 1975; Coff and Kryscynski 2011; Mincer 1984; Ployhart and Moliterno 2011). Temporary skilled workers play an increasingly pivotal role in the competitive advantage of the firm (Abell, Felin and Foss 2008; Coff and Kryscynski 2011; Teece 2007). However, when temporary skilled migrants are a part of the firms’ human capital, issues emerge that organisations need to address through their HR processes. Poor expatriate cross-cultural adjustment has been the topic of extensive international research and this literature can also be drawn upon to illustrate similar issues relating to workers on 457 visas. Black and Stephens (1989) identified three facets of expatriate adjustment issues: work, general (living conditions and culture) and interaction with others in the host country. In terms of adjustment to work, role has been shown to be a key factor including role novelty, discretion, ambiguity and underemployment in the under-recognition of skills (Aryee and Stone 1996; Black and Gregersen 1991; Florkowski and Fogel 1999; Reid 2012; Shaffer, Harrison and Gilley 1999). The general adjustment of expatriate workers can also be affected by spousal and family assimilation (Shimoni, Ronen and Roziner 2005) and differences between western and eastern cultures where relevant (Black and Gregersen 1991; Caligiuri et al. 1998; Shaffer, Harrison and Gilley 1999). Effective interaction with others in the host country can also be affected by the level of organisational support available (Caligiuri, Joshi and Lazarova 1999; Shaffer, Harrison and Gilley 1999) and individual factors including personality, international experience, 78

© 2014 Australian Human Resources Institute

Susanne Bahn

knowledge and preparation undertaken prior to relocation to another country (Parker and McEvoy 1993; Shaffer, Harrison and Gilley 1999). Temporary skilled migrant needs Human capital is underpinned by education and experience (Becker 1975; Mincer 1984) whereby the possession of knowledge that is in high demand and difficult to source leads to competitive advantage (Barney 1991; Pennings, Lee and Witteloostuijn 1998; Wright, Smart and McMahan 1995). Sourcing the best mix of skilled workers is a key factor associated with organisational performance (Bruderl, Preisendorfer and Ziegler 1992; Gimenco et al. 1997; Pennings, Lee and Witteloostuijn 1998). Hornbeck and Salmon (1991, 3) describe human capital as ‘the productive capacities of human beings as incomeproducing agents in an economy’. The possession of sought-after skills enables workers to act in new ways (Coleman 1988). In terms of highly skilled migrants, such workers have become a prized commodity in the global labour market and, as a result, they can have a large earning capacity as their skills are sought, thus exemplifying human capital theory at work (AWPA 2012). That said, temporary skilled migrant workers in Australia, and especially those originating from non-English speaking countries, have needs beyond those that merely support their employment (Bahn, Barratt-Pugh and Yap 2012). In the skilled migration literature issues related to migrant workers and work include: a need to be proficient in English (Toner and Woolley 2008), wage parity with the workers of the host country, (Deegan 2007; Oke 2010), the transfer of skills from migrant workers to domestic workers (Brooks, Murphy and Williams 1994; Toner and Woolley 2008), the negative impact of employing skilled migrants on the reduced delivery of training (Bahn and Cameron 2012; Hugo 2006; Toner and Woolley 2008), the impact on employment levels of domestic residents (Richards 2006), the knowledge drain on the country of origin of the skilled migrant – whereby skilled workers permanently leave the home country (Khoo et al. 2007; Wickramasekara 2003) – and the social implications for skilled migrants living and working in foreign countries (Piper 2009) including Australia (Bahn, Yap and Barratt-Pugh 2012). Furthermore, the underutilisation of a migrant’s skills in the host country, particularly when English is not their first language, can lead to negative effects on well-being (for example, Huber et al. 2010; Mattoo, Neagu and Ozden 2008; Misztal 1999; Reid 2012). Temporary skilled migrant workers on 457 visas, and especially those from the Philippines, often require an extended range of social support when working and living in Australia (Piper 2009). Although 457 visa holders are required to have vocational English proficiency (DIAC 2009), there is no requirement for their spouse or children to be able to speak English, and some arrive in Australia with limited language skills. Moreover, Toner and Woolley (2008) argued that migrants not only need time to become proficient in English, they also need to familiarise themselves with work routines, requirements and safety standards that may differ from their home country. So while English capability may © 2014 Australian Human Resources Institute

79


be an issue for Filipino workers, so too may be their adaptation to the home environment in Australia that brings with it other challenges for example: performing simple duties such as laundry, shopping and cooking that may differ significantly from practices in their home country (Hancock, Cooper and Bahn 2009). This may include a lack of familiarity with domestic electrical appliances or city life. To investigate these issues three research questions are posed in this paper: Research question 1: What support mechanisms do temporary skilled migrant workers on 457 visas need to settle into work in Australia? Research question 2: Do temporary skilled migrant workers on 457 visas from the Philippines require additional support? Research question 3: What particular HR practices are needed to assimilate temporary skilled migrant workers on 457 visas from the Philippines?

Research methodology A mixed methods approach (Creswell et al. 2003) was used in this study that drew on field research and statistics concerning skilled migration (such as migration data collected by the Australian Bureau of Statistics). Qualitative data was collected in a total of semi-structured interviews with 30 workers on 457 visas, 17 business representatives and 7 support agency representatives. Interviews were conducted between May and September 2012. Twelve interviews were conducted face-to-face and 42 were conducted by telephone (due to some participants working in remote areas of WA). The interviews ranged between 30 and 60 minutes. Business representatives were sourced through the membership list of the Australian Mines and Metals Association and invited to contribute to the study and 457 visa workers were employed within these businesses. The 7 support agency representatives were sourced from a convenience sample of businesses that worked with skilled migrants. Within this sample, 6457 visa holders were from the Philippines, 7 business representatives employed Filipino workers and 3 support agencies assisted the Filipino workers. Table 1 provides details of the all-male sample used for this study. The 457 visa workers came from a range of countries, were predominantly employed in professional or highly skilled roles and were aged between 20 and 50 years. Specifically, the occupations of the six 457 visa holders from the Philippines included: 2 chefs, 2 boilermakers and 2 engineers. Four of the Filipino workers were married with children. Three of the workers’ spouses and children still lived in the Philippines while one had his family with him in Australia. These four workers planned to seek permanent residency and were aged between 25 and 40 years. Interview questions focused on how the workers were recruited, costs of relocation (including who paid), the skills/job role match, employment support for settlement into Australia, the impact of their relocating on their family, views on the advantages of 80


Susanne Bahn

Table 1

Demographic breakdown of workers sampled

Occupation

Managers/directors Engineers, technicians and related professionals Clerical and administrative workers Trades (e.g. chefs, boilermakers) Length of time in Australia Less than one year 1–2 years Two years or more Marital status Single/separated Married/de facto Family in Australia Yes No Number of children None One Two Three Country of origin England Philippines Scotland Ireland South Africa Other Age range 20–24 years 25–30 years 31–40 years 41–50 years 50+ years Total

% of sample

No. of interviewees

20 50 23 7

6 15 7 2

47 30 23

14 9 7

30 67

9 21

53 47

16 14

43 23 17 17

13 7 5 5

30 20 13 7 7 30

9 6 4 2 2 9

20 33 30 13 3 100

6 10 9 4 1 30

being in Australia and the difficulties they faced settling in Australia. Plans for permanent residency were also discussed. The interviews were semi-structured and analysed thematically so as to inductively generate relevant themes drawing on Braun and Clarke’s (2006) six-step process of thematic analysis. The quotes used in the paper are identified as three types: worker, business © 2014 Australian Human Resources Institute

81


and agency to indicate the source of the comments. Quotations from the Filipino workers are specifically labelled. Only those themes that emerged strongly in the data appearing as recurring statements were included in the analysis. Examples of these themes included: the loyalty and hardworking attitude of Filipino workers, the benefits of working in Australia (financial, exposure to new technology and a safe environment), the costs of applying for the 457 visa, skill recognition and relocation, and the additional support they needed to settle in Australia (such as gaining familiarity with city life). Findings Benefits of employing skilled migrants The findings indicated that the business representatives interviewed were confronted with a shortage of skilled workers in Australia and therefore sourced workers on 457 visas to supplement their labour force. The business representatives were broadly supportive of the 457 employees, describing them as loyal, hardworking and committed to the work they do. This was particularly the case for workers from the Philippines as illustrated by the comments below: They’ve [Filipino workers] got a great work ethic and they’re pro-active. (Business 1) We tend to get great loyalty, particularly from our Filipino chefs. They commit to what they signed up for and they sign up for 4 years. (Business 2)

All of the workers on 457 visas interviewed for this study indicated that there were several benefits for them even when working for a short time in Western Australia including improved career prospects, exposure to new technology and innovative projects. The advantages are that you can learn more and you can learn the technology. It’s like an exchange of ideas. For me the learning is the thing that matters the most. (UK Worker 1)

Specifically, workers from the Philippines on 457 visas reported: having more choice, equality in that they feel valued for their skills, financial rewards and having a safe community environment. One support agency worker commented that the workers valued equality most of all, stating: I’ve heard this commonly by the Filipino guys that I’ve dealt with; they don’t have the selfesteem because they think that everyone else is above them and they’re just out here in a lower level, so they’ve never had that confidence. Now I tell them in Australia whether you’re wealthy or poor, educated or not, we can eat the same food it doesn’t really matter; we are all equal. And actually, they have more choice in Australia. (Support Worker 1)

Many of the workers on 457 visas noted the financial rewards of working in Australia where their salaries exceeded what they were paid in their home country. In terms of workers from the Philippines, who come to work in Australia while their family remained in their home country, the higher financial rewards were reported as beneficial in improving the lives of their families. These workers often shared accommodation and lived 82


Susanne Bahn

simply so that they could send substantial amounts of their salaries (between 30–90% of their wages – A$1000–3000 per month) back home. For my kids it’s a very big advantage because I send my money to the Philippines and the money is big value in the Philippines, the salary is much better than compared to the Philippines. (Filipino Worker 1)

In particular, the workers on 457 visas employed in professional roles observed the benefits of exposure to new projects, ways of working and operations that allowed them to achieve and extend their skills and knowledge, thereby facilitating a transfer of knowledge to the host country in the long-term for those workers returning home once their contract expired. However, for workers from the Philippines there was more likely to be a knowledge drain (Khoo et al. 2007; Wickramasekara 2003) because many were seeking permanent residency in Australia. Costs of working as a skilled migrant Navigating visa applications and the skills and qualifications recognition process in Australia can incur additional costs for migrant workers wanting to enter Australia on a 457 visa. In this study, examples were given of workers paying overseas migration agents prior to their arrival in Australia. Payments were calculated according to their expected income in Australia, and others who may have had their immediate costs met by their employer were required to pay back such ‘loans’ in instalments once they commenced work. This was particularly the case with workers from the Philippines who were not provided with the same support as those from other countries when entering Australia. The agency [Migration] where I applied for they charged me like one month’s salary. My original contract was A$48 000 a year before and they computed it on a monthly basis, so I paid them more than A$3000 just to come here. (Filipino Worker 2)

There were also cases of migration agents located in the Philippines who were charging potential migrant workers to prepare their 457 visa at the same time as charging the business in Australia to supply the worker. I found out as well that the employer paid the agency for me to get over here, so obviously the agency was charging on both sides, like the applicant and the employer. (Filipino Worker 2)

Recognition of migrant workers’ qualifications A strong theme that emerged from the data concerned the recognition of the qualifications of skilled migrants and their spouses. Several of the business representatives included in this sample indicated issues with aligning migrant skills with the Australian Quality Training Framework. The TRA [Trade Recognition Australia] it’s just such a pain in the backside. Surely, the whole process could be aligned? If they get their visa then obviously they’ve met the skills requirement. I’d rather a slightly longer visa process, which encompasses that skill checking rather than a separate TRA. We will bring blokes over and we had guys fail a TRA. (Business 2) © 2014 Australian Human Resources Institute

83


When sourcing skilled migrant labour, business representatives indicated an uneven skills testing requirement between countries which generated additional hurdles for workers. This was particularly the case when sourcing workers from the Philippines where English proficiency plays an important role. This was previously identified by Toner and Woolley (2008) who argued that workers with lower English capabilities were more likely to be exploited through poorer working conditions. The skills test is really difficult because they only apply it to some countries for some occupations. So, if you’re bringing an Irish refrigeration mechanic then knock yourself out, just bring him in, whereas if you’re trying to bring a refrigeration mechanic from the Philippines then the skills test in the English language will be required. (Business 2)

The underutilisation of migrant skills by the host country (Huber et al. 2010; Mattoo, Neagu and Ozden 2008; Misztal 1999) was particularly evident with reference to the recognition of the skills possessed by the spouses of workers and the requirement to retrain or take up bridging courses which were costly, time consuming and resulted in the spouse taking up lower skilled work (for example, trained midwives working as aged care assistants). My partner has a medical background and she is not allowed to work in her natural environment as a medical trained person. That is something that I think Australia should address this. You will find that a lot of people that have a medical or teaching background they’re typical combinations who cannot work here in Australia. That’s a loss of talent. (South African Worker 3)

The recognition of comparative skills between nation’s remains a significant barrier to addressing skills shortages in Australia and according to Reid (2012) continues to affect the well-being of migrant workers. Support needed by workers Key issues that emerged from this study concerned worker assimilation in the workplace which was related to several factors: loneliness and isolation (Bahn, Yap and Barratt-Pugh 2012), the process of settling into Australia, and spousal and family relationship issues. Failure to acknowledge these problems resulted in threats to the emotional well-being of the workers and their families and, in three cases, led to workers returning home prior to the completion of their contracts. Business, support workers and workers on 457 visas argued that the first month after arrival in Australia is a crucial period that determines whether they remain or return home. Given many workers in the sample group stated that they had little knowledge of life in Australia prior to their arrival, including transport issues, insurance and accommodation, there are indications of a need for pre-departure preparation and training. There was also evidence from the data that the sample group of workers on 457 visas have varying needs when settling in Australia. Some workers settle easily and quickly, while others require individual attention and intensive resources. Workers from the Philippines generally required more support. As found in an earlier study, cultural integration, 84


Susanne Bahn

English language capability (Toner and Woolley 2008) and effective communication skills seem to be the main areas that assisted the assimilation of migrant workers in WA. I just think everybody needs to be managed, these people don’t just rock up and everything is perfect for them. Every person coming here, their story is individual and what they go through is very individual. You can’t put them all in the same basket. (Business 3)

Understanding the culture could be considered a key requirement for newly arrived migrant workers settling into Australia. Markus and Kitayama (1993) argued that interdependence is emphasised in Asian cultures in that people value their individuality and continually seek affirmation through others with regard to how they connect, by attending to and harmoniously coordinating with other people within the social context. In contrast, a key component of western cultural identity concerns continual individual selfaffirmation as an ‘autonomous agent who has functioned, is functioning, and will continue to do so effectively in future, daily social life’ (Markus and Kitayama 1993, 767). There’s always that opportunity in terms of inducting them into the Australian culture. For example, the tolerance of smoking in different places, buildings and offices – it’s not tolerated in Australia. (Business 4)

There was evidence that workers on 457 visas arriving in Australia from countries such as the Philippines are generally well supported within their community and their churches. This finding was similar to that of research on refugee arrivals in Australia whereby the community played an intrinsic part in the resettlement process (Hancock, Cooper and Bahn 2009; Mitchell, Kaplan and Crowe 2006). This link with the community has helped skilled Filipino workers to settle into Australia more easily than others from English speaking countries, as established by the findings of this study, even though their lack of language skills can be a barrier as noted by Toner and Woolley (2008). The Filipino community is now very well established, the Filipino church and the Filipino Association; they lock into those networks very quickly. You do see them jumping on their bikes and then dropping into each other’s houses. They all generally live within bike riding distance of where they work, particularly if they’re in the metropolitan area. The Filipinos can be quite intense in terms of pastoral care. (Business 4) I think some of the Filipino women, the networking that they need is with family and friends in the Philippines. The women in particular sometimes find it very hard to build a life in Australia. (Business 3)

Workers on 457 visas generally bring their families with them when they come to work in Australia (Khoo, Hugo and McDonald 2008). However, Filipino workers often come to work in Australia leaving their family behind in their home country. It is quite common for them to wait for a year or two before arranging for their family to join them in Australia. However, the staggered relocation process many of the Filipino migrants adopted prior to their applications for permanent residency status supports a case for streamlining and expediting cultural assimilation. © 2014 Australian Human Resources Institute

85


It’s the worker that comes over on a 457 but sometimes the family will come as well. The Filipinos tend to only come themselves; they have worked a lot on cruise ships and done this sort of work before. They tend to not bring their families initially and wait until they’re settled and they’re happy to bring them over. (Business 3)

In general, interviewees indicated that the settlement of workers on the 457 visa requires intensive support within the first month after their arrival. In the case of the Filipino workers in the sample, it was clear that when their families arrived twelve months later intensive support was required once again. Migration and relocation agents role Many of the businesses sampled for this study outsourced the 457 application process to Migration Agents because they lacked the personnel to manage the task within the firm. It’s a lot of work and without having a dedicated person based in the Philippines it’s quite difficult to manage from here. So we did decide to outsource that. (Business 2)

In addition, an emerging level of support has occurred with the use of relocation agencies at a direct cost to business that assists newly arrived workers with settlement in Australia. Relocation agencies are private unregulated businesses that are engaged by companies to provide a range of services including: sourcing accommodation, services in the local area and schools, collection at the airport on arrival and general assistance to help settle the worker in Australia. The extent of services varies between businesses, however many engage relocation services for the first month of the worker’s contract and the cost to business to provide relocation services is around A$3000 per worker (http:// www.relocationresources.com.au). The business representatives sampled claimed that workers who were assisted by relocation agents were better assimilated and had fewer issues in their first month of arrival compared with those who had not received this assistance. Hence, this support enabled those workers to begin work quickly and the workers themselves were generally appreciative. For workers and their families from the Philippines relocation agents provided a valuable connection to the community which was extremely important in helping them to settle in effectively. I pick them up from the airport, help with the housing, I settle them; do orientation for the local area and then I introduce them to the local Filipino community. I become a mum to them 24 hours a day and I basically act as next of kin for them. (Support 2)

However, some businesses that used relocation agencies had a tendency to leave the assimilation of their workers solely to the agency. Workers indicated that they required support from their organisation as well as intensive help in the first few weeks of arrival in Australia. Human capital theory at work Human capital theory argues people who possess knowledge that is in high demand and is difficult to source hold a competitive advantage (Barney 1991; Pennings, Lee and 86


Susanne Bahn

Witteloostuijn 1998; Wright, Smart and McMahan 1995). In terms of the temporary skilled migrant worker on a 457 visa this is most certainly the case. Skilled human capital has become a keenly sought after global commodity whereby those who are prepared to follow the work will most often rewarded. Holders of 457 visa represent key human capital and their skills enable them to acquire highly paid and rewarding careers as long as they are prepared to travel to countries and remote locations and work according to conditions that are determined prior to their employment. Furthermore, the ability to source and recruit the best mix of skilled workers underpins improved organisational performance (Bruderl, Preisendorfer and Ziegler 1992; Gimenco et al. 1997; Pennings, Lee and Witteloostuijn 1998). The business representatives interviewed argued that, in a tight labour market, sourcing skilled workers from other countries on temporary visas was important to delivering their projects as per their contracts. These businesses were often prepared to ‘go the extra mile’ to ensure that they had a steady supply of skills to remain both productive and competitive. Implications for HRM This study has revealed a number of areas that impact on organisational human resource practices when employing migrant workers on 457 visas and particularly those from the Philippines. Although Filipino workers have much needed skills that are in short supply in Australia, and their work ethic is reported as exemplary, there was evidence in the study that they have varying needs when they arrive. Some workers settle easily and quickly, others require individual attention and intensive resources. Understanding the culture is a key requirement for newly arrived migrant workers settling into Australia and particularly for those from the Philippines. Markus and Kitayama (1993) noted that Asian workers seek affirmation from their colleagues that they are valued and included in social settings as they maintain that how others view them is important to their identity. Other research indicates that Asian workers are becoming more westernised and manage more efficiently in social settings than in the past (Rowley and Benson 2002). This study found that additional resettlement needs to support assimilation were needed by the Filipino workers and their families. However, cross-cultural skills belong to a specialist field and may not ordinarily be included in many HRM professionals’ skill sets. In addition, HRM professionals may not have the knowledge or skills to train domestic workers with regard to cultural differences so this may limit their ability to assist with migrant settlement. Moreover, HRM professionals may not have undergone specific training in order to develop their own cross-cultural skills whereas migrant community organisations and multicultural agencies are likely to be experienced in these areas. This study found that companies were turning to migration and relocation agency services to assist them with sourcing and settling workers on 457 visas. The study showed that some relocation agencies provide significant and extended pastoral care for their clients on 457 visas, building relations over months and years, providing a valuable connection to the community. The data showed that workers who were assisted by relocation © 2014 Australian Human Resources Institute

87


agents were better assimilated into the community and workplace with fewer issues arising in the first month of arrival, thus generating an earlier and less interrupted focus on work. This service is a resource that the companies may wish to utilise. However, HRM professionals would be well advised to evaluate the impact of such services by seeking feedback from the migrant workers as well as noting that outsourcing support does not outsource aspects that should be the responsibility of the firm such as assisting workers to settle into life in Australia. Furthermore, this study provided evidence that workers on 457 visas coming into Australia from countries such as the Philippines have an added advantage as they are generally well supported within their ethnic and church communities. This level of community support could be readily tapped into by HRM professionals in that they can draw on assimilation assistance and networking to facilitate the development of supportive friendships that may help the spouse to cope particularly if the worker is working away from home for extended periods. The implications for the HRM professional when employing Filipino workers on temporary 457 visas are: recognition of the extended time they may need to invest in order to assimilate these workers and their families within an Australian workplace and culture. Human capital theory notes that the possession of knowledge that is in high demand and difficult to source leads to the competitive advantage of skilled workers (Barney 1991; Pennings, Lee and Witteloostuijn 1998; Wright, Smart and McMahan 1995). Thus, it is advocated that HRM professionals use soft HRM processes (Briscoe and Schuler 2004) to support enhanced assimilation to consolidate the return on investment of 457 workers by firms as it is not only the competitive advantage of the workers that is likely to be affected but it is to the firms’ advantage as well. Furthermore, Sheehan and De Cieri (2012) in their examination of the role of HRM argue that the issue of skills shortages and the emerging and changing roles of HRM professionals provide an opportunity to add value to the firm in the current climate of shifting HR responsibility. This study found that, on average, the relocation cost to business of engaging workers on 457 visas is $30 000 (Bahn, Yap and Barratt-Pugh 2012). However, if workers on 457 visas leave before their contract is completed the cost to the firm includes a loss of the relocation costs, the time spent on supporting the worker and the time required to recruit another skilled worker. To facilitate improved and timely assimilation, HRM professionals could support migrant workers and especially those from the Philippines with cultural awareness training programs designed to familiarise them with aspects of the Australian culture. They could also extend this initiative to include the families of migrants if and when they move to Australia. As indicated earlier there may also be significant advantages to be gained in developing more formal relational links with local Filipino community leaders. While most of the businesses interviewed for the study acknowledged that they could do more to assist in cultural awareness there was evidence that some firms did provide support in this area. Finally, many workers from the Philippines who assume that working on temporary 457 visas is a pathway to permanent residency in Australia appear to be correct 88


Susanne Bahn

(McDonald 2013). Once again this has implications for the HRM professional as to achieve permanent residency additional support is needed to navigate the paperwork as well as commitment by the sponsoring organisation that the worker will be offered ongoing employment. HRM professionals could be proactive in developing programs that will support such applications and, in return, gain loyalty from these workers to remain with the firm. Conclusion The quest to source sufficient skilled labour to meet the needs of the resource sector in Australia has resulted in the recruitment of workers from a number of nations including the Philippines. This study has gathered evidence that Filipino workers may require additional extensive support to assimilate into life in Australia, particularly when they bring their families to live there while they work. Working in Australia is vastly different from working in the Philippines; furthermore, issues of proficiency in basic living skills and socialisation tend to emerge when the workers’ families arrive. In many ways, the growth of a global employment market and the intense value of skilled human capital are encouraging HRM strategists to re-examine patterns of pastoral support. The continual active management and evaluation of resettlement agencies becomes an HRM agenda item. Skilled human capital is a global commodity and HRM professional responsibilities have extended and become more complex. The long-term benefits to the firm of supporting workers on 457 visas in terms of productivity and return on initial resettlement investment are high and warrant extended support by HRM professionals drawing on their soft skills (Briscoe and Schuler 2004). It is here, as Sheehan and De Cieri (2012) argue, that there is an opportunity to add value through the HRM role. The sample used for this study was small in that only thirty 457 visa holders were interviewed. Further research is needed to determine whether the issues that temporary migrant workers identified are generalisable across the group. Specifically, further research is needed to test the issues that the Filipino workers reported, to determine if they can be generalised across other Asian nations’ workers who are employed in Australia on temporary 457 visas in order to develop increased awareness and support practices. As skill shortages in Australia cannot be addressed through sourcing only local labour in the short-term, skilled global human capital will remain a valuable and highly competitive commodity for a number of years and the HRM professional will need to be aware of the implications of employing migrant workers. Susanne Bahn (PhD, Edith Cowan University) is a senior lecturer in the School of Business, Centre for Innovative Practice, Faculty of Business and Law, at Edith Cowan University, Western Australia. Her doctoral study focused on management values and safety culture. She has worked on several safety and social research projects over the past five years. Her interests lie in health and safety practice and processes, workplace safety culture, middle management change processes, vocational educational training in the construction and mining industries and skilled migration. © 2014 Australian Human Resources Institute

89


References Abell P, T Felin and N Foss (2008) Building micro-foundations for the routines, capabilities, and performance links. Managerial and Decision Economics 29, 489–502. Aryee S and RJ Stone (1996) Work experiences, work adjustment, and psychological wellbeing of expatriate employees in Hong Kong. International Journal of Human Resource Management 7, 150–164. Australian Bureau of Statistics (2012) Australian labour market statistics – July, ABS Canberra. Available at: http://www.abs.gov.au/ausstats/[email protected]/mf/6105.0 (accessed 5 Sept 2012). Australian Workforce and Productivity Agency (AWPA) (2012) Future focus: Australia’s skills and workforce development needs. A discussion paper for the 2012 National Workforce Development Strategy, July 2012. Bahn S, LGB Barratt-Pugh and G Yap (2012) The employment of skilled migrants on temporary 457 visas in Australia: Emerging issues. Labour & Industry 22(4), 379–398. Bahn S and R Cameron (2012) Skills labour demand and supply in resource rich regions of Australia. 26th Annual Conference of the Australian and New Zealand Academy of Management, Perth, WA. Bahn S, G Yap and LGB Barratt-Pugh (2012) 457 visa workers in the Western Australian resources industry: The benefits and costs for business, migrant families, and the community. Final report, Edith Cowan University, Perth, 1–40. Barney J (1991) Firm resources and sustained competitive advantage. Journal of Management 17(1), 99–120. Becker GS (1975) Human capital. Chicago University Press, Chicago, IL. Black JS and HB Gregersen (1991) Antecedents to cross-cultural adjustment for expatriates in Pacific Rim assignments. Human Relations 44, 497–515. Black JS and GK Stephens (1989) The influence of the spouse on American expatriate adjustment and intent to stay in Pacific Rim overseas assignments. Journal of Management 15, 529–544. Braun V and V Clarke (2006) Using thematic analysis in psychology. Qualitative Research in Psychology 3, 77–101. Briscoe D and R Schuler (2004) International human resource management: Policy and practice for the global enterprise. Routledge Press, New York. Brooks C, J Murphy and L Williams (1994) The role of skilled temporary residents in the Australian labour market. Bureau of Immigration and Population Research, Canberra. Bruderl J, P Preisendorfer and R Ziegler (1992) Survival chances of newly founded business organizations. American Sociological Review 57(2), 227–242. Caligiuri PM, MM Hyland, A Joshi and AS Bross (1998) Testing a theoretical model for examining the relationship between family adjustment and expatriates’ work adjustment. Journal of Applied Psychology 83(4), 598–614. Caligiuri PM, A Joshi and M Lazarova (1999) Factors influencing the adjustment of women on global assignments. International Journal of Human Resource Management 10, 163–179. Coff R and D Kryscynski (2011) Drilling for micro-foundations of human capital based competitive advantages. Journal of Management 37(5), 1429–1443. Coleman JS (1988) Social capital in the creation of human capital. American Journal of Sociology 94, S95–S120. 90


Susanne Bahn

Creswell JW, VL Plano Clark, M Gutman and W Hanson (2003) Advanced mixed methods research designs. In A Tashakkori and C Teddlie (eds) Handbook of mixed methods in social and behavioural research, 209–240. Sage, Thousand Oaks, CA. Deegan B (2007) Visa subclass 457 integrity review: Final report. http://www.immi.gov.au/skilled/ 457-integrity-review.htm Department of Education, Employment and Workplace Relations (DEEWR) (2012) Unemployment rates by state and territory, July 2012. www.deewr.gov.au/lmip/default.aspx?LMIP/LFR_LFR _LM_byLFR_UnemploymentRate (accessed 4 Sept 2012). Department of Immigration and Citizenship (2009) Subclass 457 – business (long stay) policy update. www.immi.gov.au/gateways/agents/news/2009/457-policy-changes.htm Department of Immigration and Citizenship (2012a) Subclass 457 state/territory summary report – 2011–12 to 31 January 2012. www.immi.gov.au/media/statistics/pdf/457-stats-state-territoryjan12.pdf Department of Immigration and Citizenship (2012b) Consolidated sponsored occupation list. www.immi.gov.au/skilled/_pdf/sol-schedule1-2.pdf (accessed 29 Jan 2012). Florkowski GW and DS Fogel (1999) Expatriate adjustment and commitment: The role of host-unit treatment. International Journal of Human Resource Management 10, 783–807. Gimenco J, TB Folta, AC Cooper and CY Woo (1997) Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly 42, 750– 783. Hancock P, T Cooper and S Bahn (2009) Evaluation of the integrated services pilot program from Western Australia. Evaluation and Program Planning 32, 238–246. Hornbeck DW and LM Salmon (eds) (1991) Human capital and America’s future: An economic strategy for the nineties. John Hopkins University, Baltimore, MD. Huber P, M Landesmann, C Robinson and R Stehrer (2010) Migrants’ skills and productivity: A European perspective. National Institute Economic Review 213, R20–R34. Huddleston V, P Huddleston and M Tonts (2012) Migrants’ attraction to cities – implications for Perth. Committee for Perth FACTBase Bulletin 27, University of Western Australia, 1–10. Hugo GJ (2006) Temporary migration and the labour market in Australia. Australian Geographer 37(2), 211–231. Khoo SE, G Hugo and P McDonald (2008) Which skilled temporary migrants become permanent residents and why? International Migration Review 42(1), 193–226. Khoo SE, P McDonald, C Voigt-Graf and G Hugo (2007) A global labor market: Factors motivating sponsorship and temporary migration of skilled workers to Australia. International Migration Review 41(2), 480–510. Markus HR and S Kitayama (1993) Culture, self, and the reality of the social. Psychological Inquiry 14(3–4), 277–283. Mattoo A, IC Neagu and C Ozden (2008) Brain waste? Educated immigrants in the US labor market. Journal of Development Economics 87(2), 255–269. McDonald P (2013) 457 visas benefit workers: Government advisor. www.abc.net.au/radionational/ programs/breakfast/457-visas-benefit-workersgovernment-advisor/4555162 (accessed 18 April 2013). Mincer J (1984) Human capital growth and economic growth. Economics of Education Review 3(3), 195–205. Misztal BA (1999) Migrant women in Australia. Journal of Intercultural Studies 12(2), 15–34. © 2014 Australian Human Resources Institute

91


Mitchell J, I Kaplan and L Crowe (2006) Two cultures: One life. Community Development Journal 42(3), 282–298. Oke N (2010) Working transnationally: Australian unions and temporary migrant work. Social Alternatives 29(2), 70–75. Parker B and GM McEvoy (1993) Initial examination of a model of intercultural adjustment. International Journal of Intercultural Relations 17, 355–379. Pennings JM, K Lee and AV Witteloostuijn (1998) Human capital, and firm dissolution. Academy of Management Journal 41, 425–440. Piper N (2009) The ‘migration–development nexus’ revisited from a rights perspective. Journal of Human Rights 7(3), 282–289. Ployhart RE and TP Moliterno (2011) Emergence of the human capital resource: A multilevel model. Academy of Management Review 36, 127–150. Reid A (2012) Under-use of migrants’ employment skills linked to poorer mental health. Australia and New Zealand Journal of Public Health 36, 120–125. Richards D (2006) Temporary visas – not the answer. Australian Nursing Journal 14(4), 31. Rowley C and J Benson (2002) Convergence and divergence in Asian human resource management. California Management Review 44(2), 90–109. Shaffer MA, DA Harrison and KM Gilley (1999) Dimensions, determinants, and differences in the expatriate adjustment process. Journal of International Business Studies 30, 557–581. Sheehan C and H De Cieri (2012) Charting the strategic trajectory of the Australian HR professional. Asia Pacific Journal of Human Resources 50(2), 151–168. Shimoni T, S Ronen and I Roziner (2005) Predicting expatriate adjustment: Israel as a host country. International Journal of Cross Cultural Management 5(3), 293–312. Teece D (2007) Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal 28, 1319–1350. Toner P and R Woolley (2008) Temporary migration and skills formation in the trades: A provisional assessment. People and Place 16(3), 47–57. Wickramasekara P (2003) Policy responses to skilled migration: Retention, return and circulation. Perspectives on labour migration 5E. International Labour Office, Geneva. Wright PM, DL Smart and GC McMahan (1995) Matches between human resources and strategy among NCAA basketball teams. Academy of Management Journal 39, 441–463.

92
