3 ways the Brexit would harm the UK recruitment market

This is a guest post written for us by Jo Sellick, Managing Director, Sellick Partnership.  Subsequently Raj Mistry, partner at Top Suffolk Jobs has shared his thoughts on 3 Ways the Brexit Would Help the Recruitment Market.

As we approach the final month of debates ahead of the EU Referendum on 23rd June, the recruitment industry is fast running out of time to make a decision on which way to vote. During recent weeks we have heard various politicians and business leaders pin their colours to the mast, but I would wager that the vast majority of voters have yet to make up their minds. As an industry, I believe recruiters should stick together and come to a joint decision on the issue. After looking extensively into the pros and cons of a Brexit, I feel an obligation to urge my peers to cast their votes in favour of remaining in the EU, and here is why:

The Brexit would result in years of negotiations

Nobody can claim to know the exact implications of a Brexit, as the move is completely unprecedented, but we do know for certain that there would be years of negotiations in order for the UK to withdraw from the treaty. While some may well argue that the long-term benefits of this are worthwhile, I am more concerned about the immediate impact this would have at a time when the UK economy is only just getting back on its feet. Consumer confidence would almost certainly drop and Mark Carney himself, the Director of the Bank of England, has warned that the possibility of leaving Europe poses the “biggest domestic risk to financial stability”.

The recent plight of high street names like BHS is all too stark a reminder of the lead-up to the 2008 crash, illustrating the instability that still threatens the UK jobs market. It might only take a small nudge in the wrong direction for the economy that has been faring so promisingly to revert back to riskier times. This could put thousands of jobs at risk, which clearly has severe implications for the recruitment sector.

EU recruitment legislation would be under threat

Like it or loathe it, the recruitment industry currently adheres to EU legislation such as Agency Workers Regulations and the Working Time Directive. If we exit the EU, historical policies may well still apply but every single piece of legislation relating to recruitment would need to be reexamined. This would place a huge strain on our legal system and would be extremely difficult for recruiters to navigate in the meantime. And we must not forget about all the British workers who are employed within the EU, who are protected against discrimination and given minimum requirements on working conditions thanks to EU law.

At the recent APSCo members’ meeting Peter Luff, a member of the European Movement’s referendum strategy team referred to the Lawyers In for Britain report as a major argument to remain in the EU. The report has been compiled by a group of expert lawyers who have carefully examined the cases for and against the Brexit. More than 200 signatories are members of Lawyers In for Britain and in their professional opinion believe there is a stronger case to remain than to leave. I am certainly more inclined to trust their professional opinion from a legal perspective than listen to the voices of those who know far less about the legislative implications of the Brexit.

Industries relying on foreign workers could collapse

While some campaigners on the leave side of the argument have hijacked the debate and turned this into an immigration issue, the reality is that our economy needs foreign workers in order to survive. This is certainly true of industries where recruiters rely on a steady pool of EU workers to meet demand. Agriculture, care and construction are just some of the sectors that spring to mind, and there are many others. Our NHS is staffed by huge proportions of foreign workers who face an uncertain future if the UK exits the EU.

Similarly, I know a number of British candidates who are currently working abroad; what will happen to their career prospects if we are no longer a member state? During the recent APSCo conference, Peter Luff explained that free movement was one of the founding principles of the EU and traditionally was seen as one of its major benefits. It is only during the past decade or so that this has been viewed as a problem, but perhaps now is the time to reclaim this principle as one of the key incentives for remaining. I would urge recruiters to consider this and all the other arguments outlined above – debate between yourselves if necessary – but please ensure you are as well informed as possible before heading to the polls next month.

Author Bio:

Jo Sellick – Managing Director

Jo started his career in recruitment in the early 1990s, prior to setting up Sellick Partnership in 2002. Jo began his career working in sales in Sheffield after graduating from university – but got his first break in recruitment a year later, with Badenoch & Clark. After rapid progression, he moved across to Hitchenor & Maher Financial, before setting up on his own.

Although Managing Director of Sellick Partnership, Jo’s role remains very hands-on, still maintaining a billing capacity within the business, as well as being responsible for the establishment, strategic development and growth of the firm. Since 2002, the business has grown organically from one office specialising in finance and accountancy recruitment in Manchester, to seven offices with a nationwide presence in the finance and legal sectors.