Migrants make us money
December 24th, 2007 by monies“People in HR should keep a close eye on developments in immigration policy,” says Fran Wilson, international HR manager at the Chartered Institute of Personnel and Development (CIPD). “First because companies can benefit hugely from changes made in the last few years to make it easier for overseas nationals [ONs] to work in the UK. And second because it’s HR that has the ability to ensure the interests of companies are properly represented in future policy making.”
Most ONs enter the UK under a scheme administered by Work Permits (UK) in Sheffield. WPUK recognises certain shortage “occupations” - including some IT and healthcare positions - and processes applications for these jobs without employers having to show that they have tested the resident labour market (usually done by advertising) before offering the position to an ON.
One recent initiative is the Highly Skilled Migrant Programme (HSMP), set up by the WPUK in January this year to allow international high-flyers to enter the UK without a job offer. It is innovative in being a points scheme - with points granted for qualifications, experience, salary and significant achievement - and is a natural progression from the decision last year to add an immigration category for “Innovators”. That scheme encourages talented individuals with a track record to apply for leave to set up a business in the UK.
Nevertheless, of around 800 HSMP applications submitted to date, 70 per cent have been refused. “It appears WPUK underestimated what would be involved,” says an Eversheds spokesperson. “To its credit, however, it is seeking to iron out teething troubles which are, to some extent, inevitable in any new scheme.”
Jay Cheth, policy adviser at the CBI, believes that, among British employers, small and medium-sized firms are most likely to be lacking in awareness when it comes to immigration policy. “Yet immigration has a key role to play in alleviating current skill and labour shortages and has brought significant benefits to the UK economy,” he says.
It is a myth that migrants damage British jobs and drain the public finances, he adds, pointing to Home Office research showing that a 1 per cent population rise through migration can lead to an increase in GDP of 1.25 to 1.5 per cent. Moreover, in 1999/2000, migrants made a net contribution of pounds 2.5bn in taxation.
Ms Wilson at the CIPD says other benefits to business of managed immigration policies include “greater cultural understanding and sensitivity, reflecting the communities you serve in a global economy, and the potential to learn about ways of working. Indeed,” she says, “research shows ethnic diversity is excellent for company performance. Unfortunately, there are more administrative tasks involved in employing people from abroad, but we’ve found that companies say it has paid off.”
In the future, there is likely to be a greater focus on lower- skilled workers as well as asylum-seekers and refugees. Sam Chapman, an HR manager at the Boston Consulting Group, is among those who hope to see HR at the forefront of discussions: “Our role is pivotal because we’re the part of any business that co-ordinates, researches and evaluates recruitment and retention issues.”
Noel O’Reilly, editor of the HR magazine Personnel Today, agrees: “Although public policy focuses on skilled workers, there is at least as big a demand for lower- skilled workers in industries including agriculture, building and hospitality.”
Author: Kate Hilpern
Posted in Uncategorized |