Trends in Human Resource Management - Impact on Australian Regulatory Framework

This essay discusses the impact of trends like outsourcing, casualization and gig economies on HR practices in Australia and the challenges they pose on the regulatory framework. The essay highlights the changing nature of jobs and workforce, and the effect of these trends on the relationship between employers and employees. It also discusses the impact of these trends on the Australian regulatory framework and labor laws.

Human Resource
Management

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Trends in Human Resource Management
The business and business environment has changed all across the globe. This has not only
changed the dynamics of the operations and ways of performing these operations. The change
can also be noticed in terms of the nature of the job. This change has ultimately changed the
workforce. This is because there is a change of trends like outsourcing, casualization and the
upcoming of new ‘gig’ economies (Warren, 2016). Australia is a developed economy still
impact of these trends can be noticed on these HR practices. In the long term these trends
effects the relations among the major stakeholders such as employees and employers. In this
later section of the essay challenges that these trends pose on the Australian regulatory
framework has been elaborated.
In many parts of the world, this is not an era of permanent jobs. The trend like ‘casualization’
has changed the ways in which workforce has been managed in many companies. This has
changed the nature of jobs as companies don’t keep employees for long term and hence they
do not have to be paid in high amounts (Cole, 2018). Apart from this it also reduces the
chances of people gaining life time job security. It has ultimately affected the relationship
between employers and employees. Employees are not getting themselves dedicated towards
the work at the same time employers are also not focusing towards employee development
(Stewart & Stanford, 2017). Both the key stakeholders were unable to make trust among them
due to the nature of uncertainty on both sides. In Australia there are many multinational
companies that are using such trends. This is done by the companies to limit their expenses
on the human resource management.
Another change in the trends can be noticed in the form of outsourcing as there are many
companies that are preferring outsourcing. This is because it reduces the burden of companies
to deal with employee training, their performance analysis etc. It also reduces the overall cost
that is spent on the employees and their development (Spiller & Schmahmann, 2018). The
outsourcing companies hire the employees at lower salaries. This ultimately reduces the
overall cost of operations for the company. It also helps the companies in reducing the
chances of conflicts between the management and the company. They also get improved
service quality. But this has affected the nature of the job as becoming permanent member of
the big companies is becoming difficult for the people (Raymond, 2013). This has an effect

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on the employee relations as the companies are reducing their permanent employees which
are creating a feeling of uncertainty in the minds of the people.
Big ‘gig’ economies are coming up in various parts of the world (Stone & Raymond, 2013).
This is becoming extremely common in the countries where the number of unemployed
people is more. This is due to the fact that employee’s bargaining power in the countries has
reduced considerably and they are forced to work on temporary basis (Yalcinkaya & Durcan,
2011). Since most of the people in the nation works under this kind of jobs hence it affects
the overall development of the people in their personal and professional career. It is having
direct impact on the relations between key stakeholders like employees and employers. This
is because temporary association between employees and employers do not let them make
permanent bonds. This creates a matter of trust among the two stakeholders. Companies look
for the employees that are available to them at lower cost and at the same time employees are
looking for the companies that provides longer contractual period. Employees also had to
focus on their skill development as their retrieval or extension of contracts is largely
dependent on the performance at the present contract period (Cole, 2018).
These three trends have also increased as the technology has replaced human workforce.
Companies are able to hire and take work from the people sitting from long distances. Most
of the jobs that are related to supporting the main functions or say secondary in nature are
mostly given to some other firms that gets this work done at lower cost (Teicher, Holland &
Gough, 2013). HR managers of the firms do not have to look for the performance of each and
every worker rather they evaluate the work of the companies to which they have given
contract to.
Outsourcing has changed the employment style in Australia. This is due to the fact that
outsourcing helps in focusing towards the major problems that they are facing. Decision
making and other strategic planning are some of the areas on which companies can focus on
while their daily operations can be done by some other companies (Raymond, 2013).
This will have impact not only on the relationship between the different stakeholders but it
will create challenges for the laws made in the Australia. At the same time it is also going to
affect the labour laws in the country. This is ultimately going to impact the Australian
regulatory framework. This is due to the fact that Australian companies will force the
government of Australia to make changes in the permanent job laws so that they do not face
any kind of challenge in making such moves (Huws, 2014). Regulatory framework will face

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challenges in building the environment of trust within Australia in terms of employee
relations. This is also going to effect the business environment in the country. In the larger
perspective, there are many companies in various industries that have business in different
parts of the world hence they prefer gig economies to perform their operations (Raymond,
2013). This will increase the number of unemployed within Australia which will again be a
problem for the government. This will also affect the decision making of the regulatory
framework as well as the policies that are made against the exploitation of the workers. It is
also crucial that firm looks at these challenges so as to confront any kind of problems that
might arise in front of them (Carus, 2017). They may also face challenges regarding the
employee development within the country. Increasing contract basis jobs might increase the
challenges like frequent lockouts, heavy turnouts etc.
These trends might change the business perspective within Australia as companies have to
rebuild their HR policies. This might change the overall scenario of the employment
relationship within Australia (Aroney, Higgon & Loosemore, 2013). It is also to be noted that
there are people from different parts of the world that might face problems in such situations
as the regulatory framework will have to be strict towards the people coming from other parts
of the world taking jobs.

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REFERENCES
Aroney, D., Higgon, D., & Loosemore, M. (2013). Competing on identity rather than price: a
new perspective on the value of HR in corporate strategy and responsibility.
In Human Resource Management in Construction (pp. 135-153). Routledge.
Carus, H. (2017) Australian Labour laws. Retrieved from:
https://www.hcalawyers.com.au/blog/australian-labour-law/
Cole, K. (2018) Leadership and Management: Theory and Practice. (P. 140-247).
Cengage AU.
Huws, U. (2014). Labor in the global digital economy: The cybertariat comes of age. NYU
Press.
Spiller, M., & Schmahmann, L. (2018). Economic competitiveness and
productivity. Australia's Metropolitan Imperative: An Agenda for Governance
Reform, 143.
Stewart, A., & Stanford, J. (2017). Regulating work in the gig economy: What are the
options?. The Economic and Labour Relations Review, 28(3), 420-437.
Raymond, J.S. (2013) Managing human resources (4th ed.). Milton, Wiley Textbooks.
Teicher, J., Holland, P., & Gough, R. (Eds.). (2013). Australian Workplace Relations.
Cambridge University Press.
Warren, K. (2016). Rise of gig economy threatens vulnerable workers. Newsmonth, 36(7), 5.
Yalcinkaya, T., & Durcan, N. M. (2011). Institutional Economics and the Institutions of
Global Capitalism. GSTF Business Review (GBR), 1(1), 197.

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