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Why recruit temporary sponsored skilled migrants? A human capital theory analysis of employer motivations in Australia

Author

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  • Chris F Wright
  • Andreea Constantin

Abstract

This article uses human capital theory to analyse employer motivations for recruiting skilled migrants on temporary sponsored visas, a group receiving limited attention within human resource management (HRM) scholarship despite being an increasingly important part of the workforce in many organisations and countries. We address this gap through a survey analysis of 1602 employer respondents who sponsored temporary skilled visa holders in Australia. The findings indicate that cost-effectiveness as a motivator for recruitment decisions can be achieved not only through HRM strategies to maximise worker productivity, as human capital theories emphasise, but also by identifying groups of workers perceived as harder working than other groups. The findings also draw attention to the role of government policy in this identification process, specifically visa regulations constraining the mobility of temporary sponsored skilled migrants, which allows employers to utilise these workers’ human capital effectively. JEL Classification: J61, M12, M51, O15

Suggested Citation

  • Chris F Wright & Andreea Constantin, 2021. "Why recruit temporary sponsored skilled migrants? A human capital theory analysis of employer motivations in Australia," Australian Journal of Management, Australian School of Business, vol. 46(1), pages 151-173, February.
    • Handle: RePEc:sae:ausman:v:46:y:2021:i:1:p:151-173
    DOI: 10.1177/0312896219895061
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    More about this item

    Keywords

    Human capital; human capital theory; international human resource management; recruitment; skilled migration; temporary migrant workers;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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