The vote to leave the EU was now over three years ago, but even though public interest is understandably waning it’s still important to consider the effects of Brexit on the recruitment industry. Here executive support staff recruitment firm Anderson Hoare share a few thoughts.
With the type of Brexit going to be delivered still up in the air, all we can base our predictions on is the noises coming from recruitment agencies and key thinkers within the industry.
Don’t hold your breath, but Brexit day is now scheduled for October 31st 2019, so what can potential changes can we forecast for the recruitment industry after this?
EU workers
Whilst the number of candidates from the UK seems to be growing at its normal rate, the pool of EU workers that much of Britain has relied on has already declined.
Due to the vote to leave and uncertainty about the future status of EU workers, some recruiters have reported a slowdown in the number of EU applicants for jobs. A Linkedin survey of recruitment agencies showcased these issues: 37% of recruiters surveyed are seeing a decrease from Italy, 35% from France, 35% from Germany, 32% from the Netherlands, 29% from Spain and 33% from other EU 27 countries in Q1 2018.
Reducing the number of EU migrants was one of the key reasons many people voted to leave the EU so the UK is likely to shun the EU’s free movement of people principle with any deal that is negotiated (or indeed in the event of ‘no deal). This will obviously lead to lower numbers of high and low-skilled workers looking to work in the UK, however what is still unclear is whether the UK has done any additional damage to its reputation as a welcoming, accessible destination to attract top talent from around the world.
Opportunities to Up-Skill the UK Workforce?
The EU’s free movement of people principle has greatly increased the pool of talent available to British companies, with large numbers of European skilled and unskilled workers allowing them to fill roles with ease.
As mentioned above, it is likely that the British government will stop to EU’s freedom of movement principle applying to the UK in any future deal, leading to a smaller pool of workers for UK employers to choose from. Due to this potential skills’ shortage, companies could well decide to up-skill more British workers to fill roles, with just under 50% of British companies stating that they would train and upskill existing employees to plug any gaps in their workforce. It may also potentially lead to salary and job security improvements to make roles more appealing to native workers.
Overall, it’s clear that although British companies have generally benefitted from the larger pool of workers from across the EU, the lower numbers available to them may actually lead to a greater focus on up-skilling native British workers as well as incentivising salary and job security improvements.
Workers’ rights
Currently, the legislation regarding as the number of working hours in the week, maternity leave, sick pay and much more are partly regulated by the EU’s directives on workers’ rights. As many of the laws we experience relating to workers’ rights are a mix between EU and UK law, it can be difficult to pinpoint which ones would be less favoured by the government post-Brexit. That said, the general consensus from British politicians is that the existing EU legislation on workers’ rights will remain largely the same, being directly transferred into UK law post-Brexit.
Despite this commitment, these rights may well change depending on the government that comes into power, although in the short to medium-term it is unlikely that any governing party would ‘upset the apple cart’ too much by repealing any of the more popular EU directives on workers’ rights.
It’s Not All Doom and Gloom
Even with so much uncertainty around the UK’s future relationship with the EU, there has been no slowdown in the number of companies looking to recruit new talent since the vote to leave. Despite this, the UK is now perceived as a less desirable location for EU workers, surely a disadvantage for more skilled positions.
The ever-changing winds of Brexit have been shown by a recent survey of the UK retail industry with business owners largely split on the potential effects of Brexit on their business. However, the view within the recruitment industry remains largely optimistic with 71% of recruiters feeling ‘very’ or ‘extremely’ confident about their possibilities for recruiting the right talent.
According to the same industry report, the majority of recruitment agencies, including ourselves at London agency Anderson Hoare, have experienced an increase in turnover since the vote to leave due to the following: business growth (56 percent); more vacancies (45 percent); more suitable candidates on the market (32 percent); and sector specific needs (28 percent).
So, for a unique silver lining amongst the seemingly grey clouds of Brexit, look no further than the UK’s resilient and constantly adapting recruitment sector…
Based in central London Anderson Hoare have been leading the field in executive support staff recruitment for over two decades and know the industry inside out. Our approach is bespoke and personal, we’re here to take the stress away and help you find perfect match solutions for both permanent and temporary roles in a quick, effective and ethical way.
