04. Navigating Economic Challenges in Sri Lanka: The Role of Talent Management in Mitigating Employee Migration


Introduction

In recent times, Sri Lanka has faced unprecedented economic challenges, leading to a surge in employee migration. As the nation grapples with the implications of this migration, businesses are compelled to reevaluate their strategies to retain and nurture their valuable human capital. This blog explores the economic crisis in Sri Lanka, the surge in employee migration, and the crucial role that talent management can play in mitigating the impact.


The above indicates percentage of foreign employment placement by gender. As per the above there is a significant increase in no of males and females migrated in 2022 when compared to 2021.

Understanding the economic landscape

Economic challenges:

Sri Lanka has encountered a series of economic challenges, including rising inflation, a depreciating currency, and a mounting debt crisis. These factors have contributed to a decline in job opportunities, leading many skilled professionals to seek employment abroad.

Employee migration:

The phenomenon of employee migration has intensified, with skilled workers opting for opportunities in foreign market. This brain drain poses a significant threat to the country's workforce, as businesses lose key talent to international competitors.

Impact on Organizations

Challenges

1. Knowledge Loss:

Organizations experiencing significant skill migration may face knowledge loss as experienced employees depart. This poses a challenge in preserving institutional knowledge, particularly if departing employees hold critical roles.

2. Disruption to Team Dynamics:

Frequent turnover due to skill migration can disrupt team dynamics, affecting collaboration and cohesiveness. The constant influx of new talent may require additional efforts in team integration and building a cohesive organizational culture (Santhosh, 2023).

3. Talent Shortages in Originating Regions:

Skill migration can lead to talent shortages in regions losing skilled workers, impacting local industries and potentially hindering economic development (OZDEN, 2017).

The Role of Talent Management:

Retention Strategies:

Effective talent management is pivotal in retaining skilled employees during challenging economic times. Companies need to implement retention strategies that go beyond financial incentives, focusing on creating a positive work culture and providing professional development opportunities (III, 2012).

Skill Development Initiatives:

Investing in skill development programs can enhance the capabilities of the existing workforce, making them more adaptable to changing market demands. Talent management should prioritize identifying skill gaps and providing relevant training to ensure employees remain competitive in the global job market (Landry, 2023).

Flexible Work Arrangements:

In response to economic uncertainties, talent management can advocate for and implement flexible work arrangements. Offering remote work options, flexible hours, and a supportive work-life balance can contribute to employee satisfaction and retention.


In conclusion, as Sri Lanka grapples with economic uncertainties and the subsequent employee migration, the role of talent management becomes increasingly vital. Companies that prioritize employee retention, invest in skill development, and implement flexible work practices are better equipped to navigate these challenges. Through strategic talent management, businesses can not only retain their workforce but also contribute to the overall resilience and growth of the nation's economy.



References

III, J. H., 2012. Talent development: A key to attracting and retaining highly skilled people in your industry. [Online]
Available at: https://www2.deloitte.com/us/en/insights/topics/talent/talent-development-a-key-to-attracting-and-retaining-highly-skilled-people-in-your-industry.html
[Accessed 22 11 2023].

Landry, R., 2023. 11 Benefits of Skill Development: Empowering Individuals and Boosting Productivity. [Online]
Available at: https://practical-management-skills.com/skill-development/benefits-of-skill-development/#:~:text=Investing%20in%20skill%20development%20creates%20a%20pipeline%20of,performance%2C%20decision-makingabilities%2C%20and%20overall%20contribution%20to%20organiza
[Accessed 22 11 2023].

OZDEN, C., 2017. Global talent flows: Causes and consequences of high-skilled migration. [Online]
Available at: https://blogs.worldbank.org/developmenttalk/global-talent-flows-causes-and-consequences-high-skilled-migration
[Accessed 22 11 2023].

OZDEN, C., 2017. Global talent flows: Causes and consequences of high-skilled migration. [Online]
Available at: https://blogs.worldbank.org/developmenttalk/global-talent-flows-causes-and-consequences-high-skilled-migration
[Accessed 22 11 2023].

Santhosh, 2023. What is team dynamics in the workplace: Tips & examples to improve it. [Online]
Available at: https://www.culturemonkey.io/employee-engagement/team-dynamics/
[Accessed 22 11 2023].

YOUNG, J., 2023. Brain Drain: Definition, Causes, Effects, and Examples. [Online]
Available at: https://www.investopedia.com/terms/b/brain_drain.asp
[Accessed 22 11 2023].

 

Comments

  1. MAHESH KULARATHNANovember 23, 2023 at 8:41 AM

    Talent Management is a different function of Human Resource Management (HRM). In brief, Talent management is the activities employer undertake to recruit and develop a workforce that is as productive as possible and committed to their organization over the long term. Talent migration is Relocation of people to other cities within their country or to other countries due to work opportunities and the possibility to improve living standards. Negative Impact to the Customer Service , Recruitment cost, Compliance & security risk will be other impacts for the organizations.

    ReplyDelete
    Replies
    1. zahranazharDecember 20, 2023 at 5:46 AM

      Exactly. there can be additional cost due to high skill and labor migration.

      Delete
  2. Nillmini EkanayakeNovember 27, 2023 at 1:36 AM

    Totally agreed. By implementing effective talent management practices, organizations can create an environment where employees feel valued, supported, and motivated to contribute to the organization's success, ultimately reducing the risk of employee migration.

    ReplyDelete
    Replies
    1. zahranazharDecember 20, 2023 at 5:42 AM

      The thing is most of the employees does not want live in the country due to political instability as well as high living costs.

      Delete
  3. Nillmini EkanayakeDecember 17, 2023 at 4:11 AM

    Hi Zahran, you have written well, by the way, I am adding extra details to your points... By focusing on attracting the right talent, nurturing development, fostering engagement, and prioritizing employee well-being, companies can create a workplace culture that mitigates turnover and retains the skilled individuals crucial for achieving organizational goals.

    ReplyDelete
    Replies
    1. zahranazharDecember 18, 2023 at 12:12 AM

      Thanks Nilmini for the comment. Currently the migration is because of not the company faults. This is happening because of the decisions taken in the political environment and the impact.

      Delete
  4. Piyumi Wickramasinghe December 18, 2023 at 8:15 AM

    Agree with your post Zaharan. Burnout, toxic work culture and a collapsing socioeconomic can contribute much to talent migration. And in the recent years its evident in Sri Lanka that talented workforce migrated mainly due to financial crisis and the challenges of aftermath such as tax reforms, political uncertainty, etc

    ReplyDelete
    Replies
    1. zahranazharDecember 19, 2023 at 5:03 AM

      Exactly. those are the main reason for employee migration.

      Delete

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