3 Ways the Brexit Would Help the Recruitment Market

Earlier this month we ran a guest post written Jo Sellick of Sellick Partnership talking about 3 ways the Brexit would harm the UK recruitment market here Raj Mistry, partner at Top Suffolk Jobs, shares his thoughts on 3 Ways the Brexit Would Help the Recruitment Market.

The EU Referendum is looming. With just over a month until we decide whether Britain should leave or stay in the European Union, opinion has been fairly evenly split. The main argument in favour of leaving the EU is the belief that Britain is being held back. An exit will see Britain not only regain control of its borders but will allow the UK to repeal restrictive EU laws and see long-term gains (or so the argument goes).

But what impact could the so-called Brexit potentially have on the recruitment industry? In a recent article, Jo Sellick argued why Britain should vote in favour of remaining in the EU, but the truth is that many individuals are still uncertain about what decision to make. The main worry is that Brexit will cause mass disruption, where EU citizens working in the UK will have to leave the country, causing chaos in the jobs market and threatening the rights of UK citizens working in other EU states. In reality, it’s not that black and white.

There are both pros and cons to Brexit, but the key concerns propagated by those in the stay-camp are not necessarily catastrophic. Here’s why:

1. An amicable split: retention of free trade

One of the main concerns is that if the UK votes to leave the EU, it will threaten the millions of EU citizens working in the UK and vice versa. But one thing is certain: should Britain leave the EU, there will be no immediate change. A transitional arrangement will allow the UK to negotiate a new relationship, which could take at least two years, if not more. There is also the worry that Brexit would mean the loss of free trade, but negotiations with the EU could mean that a free trade agreement is retained. This would allow the UK to continue to trade without paying tariffs and being tied to EU legislation.

According to Catherine Barnard, a Professor in EU and employment Law, there is also the option for the UK to join the European Economic Area (EAA), also known as the ‘Norway’ option, which would guarantee a Single Market. This would allow free movement of people, money, services and goods, meaning in reality, very little would change.

This means citizens of EU member states will still enjoy the right to travel and work in the UK, and likewise, UK citizens will retain free movement in the EU. Seeing that so many UK citizens work in EU countries, it’s unlikely that such an arrangement would not be put in place.

2. More money for the recruitment industry

Leaving the EU will mean that Britain will no longer have to pay EU membership fees. Ultimately, the UK pays far more into the EU budget than it gains back. In 2015 alone, the UK paid £13 billion to the EU (including a £5 million rebate). With just £4.5 billion spent on Britain by the EU, this meant a net contribution of £8.5 billion. This equates to roughly 250 million a week. This is money that could be injected back into the UK economy and be used to help businesses recruit skilled workers.

3. The benefit for small businesses

Those in favour of Brexit believe that small and medium-sized businesses will hugely benefit as they will no longer be held back by EU regulations. The Working Time Directive (WTD) and Agency Workers Directive (AWD) are seen to be inflexible and costly. In fact, a recent YouGov poll of SME’s revealed that 31% believe the EU makes it more difficult for them to employ people, and that the EU hinders more than helps their businesses.

The disadvantages of Brexit are said to be short term, but we’ve seen that this will hardly be the case, given the transitional period the UK would have in the event of an exit. Immediate and severe change, not only in the recruitment sector but for the whole of the UK, is incredibly unlikely. As part of the negotiation settlement, the UK could even retain many EU laws.

In exchange for access to the EU Single Market, the UK may have to abide by more European regulations. This would mean less of an impact for businesses concerned about how the Brexit could affect recruitment, while still providing the UK with the flexibility to make its own decisions without interference. Until then, this means there will be no immediate change, and plenty of time for businesses to adapt to the new changes that will occur.

Ultimately, only time will tell exactly what impact the EU referendum will have on Britain. As the 23 June nears, there will no doubt be continued vehement discussion by the stay and leave camps and uncertainty of the public as to what they should do. The bottom line however, is that the advantages of leaving the EU can clearly be seen in the distance, no matter how long we may have to wait for the results of Britain’s negotiation.

Author Bio: Raj Mistry is a partner at Top Suffolk Jobs, a jobs board dedicated to helping recruiters and jobseekers in Suffolk. Having worked in the corporate world for over 30 years, he was involved in recruiting people both internally and externally. This brought challenges of finding out how individuals learn, identifying their strengths and developing their potential. After leaving the corporate world in 2014 he set up his own business managing property which he runs with his wife and has recently set up an internet marketing company.