Economy Crisis & Skilled Migration How Impact to the HRM in Sri lanka

Economy Crisis & Skilled Migration How Impact to the HRM in Sri lanka

Introduction - Economy Crisis

Because of the Depletion of Foreign Reserves, Sri lanka is Passing through acute Economic Crisis as Results generated of shortages of people's daily essential.

The situation on the ground as well as the analyses of government’s policy measures, global geopolitical-economic developments including the fallout of Russia–Ukraine war, nonetheless suggest that Sri Lankans are not going to feel the economic relief any time sooner. Opposition and public criticism against government’s handling of the crisis is intensifying in Sri Lanka(Dr.Gublin Sulthana, 2022).

     

                            Figure 1: Gross Official Reserves          Source: (Anon. 2021).

 

 Foreign reserves in Sri lanka

Trade Deficit has been a consistent point in Sri Lankan Economy since its Independence. As Country has to pay more amount of bill's than the what country earned through the Export. It's been happened since many years. On the other hand, foreign exchange inflow to the country declined first due to the impact of Easter Sunday attack on tourism sector in 2019 and then due to the outbreak of global pandemic which severely affected all the main foreign currency earning sectors of Sri Lanka (Tourism, Remittance & Exports).

Figure 2: Gross Tourist Receipts in US$      Source:  (Anon. 2021).

                                                                                                      

 Figure 3: Total Exports           Source: (Anon. 2021)

 

 High Skilled Migrants

 Defined as in terms of formal qualification (Degree level or beyond). In other cases, the focus is on occupations requiring advanced training (scientists, engineers, researchers and other professionals). Alternatively, human capital is defined in terms of attitudes and soft skills (entrepreneurial drive and aptitude) as well as qualifications (Nathan, 2014).
 

Reasons of Migration 

Now a day's People are looking life - work balance in their life. Since Living Cost is Increasing in every Conner People are bound to compare their life with other countries. Getting of less amount of Salary's & Other benefits from the employer as well lacking to have kind of free cost of services by the government & living culture are the main points can take to the discussion on now a day.

       

Impacts to the HRM 

Ether skilled Migrants or others directly working with the HRM in any organization. HRM is the main platform that will connect with employees for formal SOPs in the organization. When Migration Percentage getting high by impacting with innovation and Operational Function Organization performance will go down.it will impact without put as well for final PnL.

Refill / Recovering migrated positions are very difficult process in any organization. Additional Advertisement/ Interviews are not gaining to the organization. even after recruited particular position required learning curve time to understanding about the all the point of the organization which is not gaining to the Organization.         

Conclusion 

Skill Migration Directly impacts to the HRM then for any organization. Government should have to make plan to recover of skill resources within the country to develop next level.

 

References

Anon., 2021. External Sector Performance , s.l.: Central Bank of Sri Lanka.

Dr.Gublin Sulthana, 2022. Economic Crisis in Sri lanka, New Delhi: Issues Brief.

Max Nathan, 2014. The wider economic impacts of high-skilled migrants. IZA Journal.

 

       

                                        

 


Comments

  1. Considering all the information can understand how important is HRM of the current situation. Excellent 👍

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  2. You have very briefly presented what you need in a very concise manner. Here are the reasons why the problems currently facing the country are exacerbated.In my opinion, more than all these factors, it is the misconduct of the reckless politicians of Sri Lanka.

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  3. This comment has been removed by the author.

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  4. What could we do to overcome this situation? It would have been nice, if you had shared your thoughts on how the current economic crisis could be dealt with.

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  5. Very good essy. The effect on SL in HRM clearly stated. And further got information on the current country crisis.

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  6. This is very powerful topic & this will be eye open for all of us considering all the facts & figures. So real fact of skills migration you mention is well explained. As a country side It will very sad the moving skills &considering above it encourage us to prevent being migration.

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    Replies
    1. Yes we have to see how we can recover to safe our skill migrants

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  7. This is a very valuable topic for these days. People need motivation and that is the drive that pushes us to work hard. The reason for the skill migration is well explained. Excellent.

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  8. I Agreed with your points, it is one of the major issues in Sri Lanka, which can be directly affected the development of the country, but no one much cares about how to control this, the government still unable to provide the proper way to control this issue, well explained.

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  9. You have very well explained the causes for skilled migration, as well as the influence on HRM, in this article. In my opinion, the government should take the necessary steps to reclaim these skill resources. Excellent write.

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  10. Hi,

    A very good topic to talk about in depth these days. A valuable post for anyone studying Economy Crisis with HRM. This gives a clear idea & well explained.

    Thanks!

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  11. Your article highlights a major breakdown in the Sri Lankan workforce in future. Real facts affected to skilled migration is well explained. But sadly, the government still does not care about this critical situation.

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  12. This is a very important topic in the present context and a major issue faced by organisations nowadays. Your use of graphs enhances the ability to understand the concept. It is better if you can include some statistics on the skilled migration.

    Thank you,

    Dilini Karunaratne

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  13. Your topic is one of the major issues what we are facing right now. It would have been a perfect one if you can add some ways to retain skilled people in Sri Lanka. All the best !!!

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  14. You have explain well about the Sri Lankan present situation and the Migration , shortage of skill employees, only the biggest problem is no any plans to overcome from this issue in the country. if this issue continues definitely there will be a poverty situation occur in this country. Also you have mention about the foreign investment in this country and can understand the present income situation , one reason may be COVID Pandemic situation and that also reflect for the Low income. In the COVID 19 Pandemic ground also you can explain some more,

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    Replies
    1. Agreed with you but after passing certain time some of other countries are came out from the Covid impact- As i have experience with Bangladesh during the pandemic time how they managed. That’s why didn’t mentioned much abut the COVID impact . Thanks 😊

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  15. Short but very clear blog about the topic. It clearly explained about these days economy crisis & skilled migration. And also how it impacts to the HRM. Sri Lankan government have to pay there attention for this major crisis. Otherwise Sri Lanka have to face lot of difficulties.

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  16. This is a very important topic in the present context and a major issue faced by organizations nowadays. excellent ...

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  17. One of the major issues that we are facing at the moment. This made me to read more about skill migration & your inputs are very vital

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  18. Economy crisis and skilled migration how impact to the HRM in sri 🇱🇰 is a good job

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  19. Hi Prageeth, A great topic. As many companies adapting work from home culture, do you think recruiting from out of the country will be a solution for this? It will be even harder to retain skilled workers in future.

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    Replies
    1. Yes if going on same, we will face many issues future.

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    2. When employing cross-border candidates, there are cultural variables to consider. A good personality match can make a big difference. In terms of expertise and skillset, a person could be exactly what you need, but a bad fit for your company culture, therefore it's important to consider their personality as well.

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  20. A good post for anyone researching the current situation and a big issue facing enterprises today regarding talent migration, and your contributions are quite valuable.

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  21. Hi Prageth,
    I like to express my thanks to facilitate to read your blogs with Current situation in Sri Lanka also.
    I am really happy with your explanations of Reasons of Migration
    You have explained the reason of that & thanks again.

    Wasantha.

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  22. This is the most important topic in prevailing situation in the economy. Anybody can understand clearly. Somehow skilled people migration is a disaster to organisations .

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  23. Important topic that currently we are experiencing. If you include how to retain high skilled people in Sri Lanka article will perfect.
    All the best !!!

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  24. Skilled migration is one of the most famous topics at present in Sri Lanka. It will directly impact to the country's economic growth.
    You have included lot of details with regard to the topic.If you could provide the suggestion to reduce skilled migration it would be much better.
    Well done Prageeth..

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  25. Skilled migration, it is a huge crisis for the organization and the country as whole. Rightly touched on the current crisis. Can learn well from the article

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  26. As migration cannot be stopped One potential solution is Government can provide subsidies for companies to move to rural areas by moving to rural areas we can source talent there than cities as Sri lanka has high literacy rate and with time people will be trained to take up higher positions in head office located in cities, thereby Company can have a contingency plan with high talent pool which were groomed by time, so even if there is migration , if one goes we have five potential people to take over, also moving out of cities cuts down employee personal expense so people with prefer to stay with a company longer even for a reasonable salary, which will not allow him to think of migration ideas

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  27. This is a really important topic, and considering all of the facts and data, it will be eye-opening for all of us. As a result, the true phenomenon of skill movement that you cite has been adequately articulated. As a rural area, the moving skills will be very sad, and considering the above, it will urge us to avoid migrating. Good job 🙏🙏

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  28. The topic you have selected is a major problem we have facing these days. Insufficient salary according to the cost of living of the country, less consideration of the employee, neglecting employee's ideas might be the reasons to employee turnover and migration of the professional skilled workers. For that management of the organization as well as the government of the country should make the decision to protect existing employee of the organization and attract outsource person to the company.
    Your article is well planned one and it explains properly the importance of the HR management and how should avoid migration of skilled workers and why?
    Good Luck....!

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  29. This a very interesting article since this explains about the practical scenario in the country as well as how those impacted to the HRM practices in Sri Lanka as well. Good work.

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  30. Timely topic to discuss. Current crisis brought the new challenges to the HR people. Talent migration heavily impact on the organizational performance. Good article. Well done.

    ReplyDelete

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