The Impact of Brexit on the Recruitment Industry
Danielle Meakin - 6 Comments - 29 Sep 2019

The Impact of Brexit on The Recruitment industry By Bridgette Hernandez

The UK was scheduled to leave the EU on March 29th. Having come and gone, there is certainly still upheaval, as the eventual outcome looms ever closer.

Prime Minister May can’t get her deal through Parliament. And at this point, the EU has provided a short extension for her to continue to try to get this vote, but it still looks unlikely to get through parliament.

Could Brexit still occur without a vote? Yes. Could Brexit be cancelled? Yes, the EU has provided that the UK could cancel Brexit up to the last minute, provided there was a Parliamentary vote to do so. This, however, does not appear likely. And there are those in Parliament who would prefer a no-confidence vote right now, regardless of Brexit issues.

Obviously, things are in a state of upheaval in the UK. But this current crisis has been two years in the making, as May has negotiated the terms of Brexit, and the uncertainties surrounding the full impact have weighed on a number of business sectors.

 

It’s the Uncertainty That Matters

Whenever there is uncertainty in the political, social, or economic environments of a country, there are consequences. Businesses and people are hesitant to take major steps or make major changes until things “settle down.”

And this uncertainty has certainly impacted the ability of the recruitment industry to find talent and expertise outside of the UK and convince these individuals to uproot themselves, move to an uncertain business environment, and put their faith in the hope that all will be well.

 

Talent Attraction

What the Recruitment Industry is Experiencing

According to a LinkedIn Quarterly Report on Recruiter Sentiment Survey, as reported in The Undercover Recruiter, 96% of those involved in HR or recruitment state that Brexit is negatively impacting their efforts to find skilled and talented people to fill open positions in the UK. And, in this report, 50% of respondents stated that they expected this impact to significantly grow in the months, and perhaps years, after Brexit goes into effect.

 

The Specifics of the Toll That Brexit is Taking

There are a number of specific circumstances affecting the recruitment industry – circumstances that they credit to the uncertainties of Brexit.

  • They cannot find enough available talent to fill position openings in the UK.
  • Candidates are not open to moving to the UK in the current environment of uncertainty
  • Candidates are far more willing to relocate for positions in other EU countries, because their economic environments remain stable. Thus, the competition is simply becoming too tough.
  • Those from other EU countries already employed in the UK are concerned about their status once the exit occurs. If they were looking to change positions within the UK, they are no longer doing so.
  • Many companies in the UK have their headquarters in other EU countries. Plans they may have had for expansion are now on hold indefinitely.

 

Here are some additional specific stats as reported by The Undercover Recruiter:
  • 37% of surveyed recruiters are experiencing a decrease in recruitment form Italy
  • 35% are seeing a decrease from France; 35% from Germany; 32% from the Netherlands; 29% from Spain; and 33% from the other 27 member countries of the EU.
  • Surveyed recruiters are also experiencing a decrease in recruitment and hires from Canada, Australia, and the U.S. as well.

In short, UK job opportunities are far less attractive to international talented and qualified candidates. And the prospects for this changing are clearly up in the air. It is difficult to predict if and when the effects of Brexit will level out and candidates will again begin to see the UK as an attractive place to which to relocate and further their careers.

 

3 month free trial

The UK Labor Market is Tightening

Because the ability to recruit internationally has suffered a decline, the internal labour market in the UK is tightening. Competition among businesses within the UK for local talent is high, and the pressure on companies to brand themselves as more attractive than their in-country competition has certainly increased. Companies will be forced into offering higher salaries, greater benefits, and other perks, in an effort to attract the talent they need. Of course, this provides an amazing environment for local talent that will be in a far better negotiating position than ever before. And recruiters will have to explain to their clients the realities of this new employment environment.

How Recruiters Should Advise Their Clients

The recruitment industry is not about to succumb to the challenges that Brexit has wrought. Instead, they will “roll with these punches,” advise their clients on the best strategies, and continue to seek the talent that their clients need, both at home and abroad. They will become more aggressive.

But in advising their UK clients, there are some strategies that may prove critical.

  1. Businesses will have to develop long-term strategies, anticipating what their need will be over the next several years and begin to work to fill those positions sooner rather than later.
  2. Companies must look within their existing talent and skills and make plans to provide professional development and training to meet their future needs, both short- and long-term.
  3. Look beyond the EU for talent. Particularly in tech fields, there is a great deal of talent in Asia, India, and Eastern European countries that are not in the EU. While this talent has certainly heard of Brexit, it may have fewer concerns about fallout from it, especially if the company is UK-based.

 

What the Future May Hold

Certainly, there are concerns about the economy of the UK once Brexit occurs. And the uncertainty is causing reticence among job seekers to make any major moves right now. It is also possible that some EU-based companies may withdraw, though not likely if they remain profitable and can continue to operate as usual. The bigger issue right now is political, and that uncertainty continues to impact everyone.

 

About the author

Bridgette Hernandez is a technical writer and contributing blogger at Hot Essay Service and Supreme Dissertations and Now for Smart Recruit Online.

She has more than five years of experience writing on topics such as tech careers, gadgets, and software development. In her spare time, she competes in robotics projects and volunteers at a local animal rescue.

 

Smart Recruit Online offers an award-winning talent attraction software that can streamline and revolutionise your recruitment. To find out what we can to for your recruitment strategy, book a demo by clicking here.

Book a demo

 

 

BridgetteHernandez@smartrecrooot.com'
Bridgette Hernandez


Bridgette Hernandez is a technical writer and contributing blogger at Hot Essay Service and Supreme Dissertations and now for Smart Recruit Online. She has more than five years of experience writing on topics such as tech careers, gadgets, and software development. In her spare time, she competes in robotics projects and volunteers at a local animal rescue.


Will Employee Engagement Save the Hospitality Industry From Brexit?
Danielle Meakin - 6 Comments - 29 Sep 2019

Businesses in the hospitality sector have every right to be worried. At least a quarter of the 3 million people working in the hospitality industry are EU nationals, according to a report by KPMG. The sector is a labour-intensive contributor to the British economy and many hotels, restaurants, bars and cafes across the UK are already reporting that they are finding it harder to recruit staff.

At a time when the hospitality industry is actually doing quite well, could Brexit take many businesses in the sector from boom to bust? There’s little doubt that businesses in the sector will need to adapt. So, what can they do right now to fight the Brexit recruitment disruption?

 

What Brexit means to the hospitality industry

The hospitality sector stands to face a shortfall of 60,000 workers per year. Post-Brexit recruitment in Britain’s fourth biggest industry is a key issue.

As well as the issue of recruitment, the hospitality sector also faces challenges with its supply chains. The Brexit-induced drop in the value of sterling has contributed to higher costs on imported produce. Businesses are already adapting their supply strategies, sourcing more foods produced in Britain. But, procurement planning is another big issue for hospitality.

As well as setting out plans for potential supply chain disruption, the industry needs to focus on building an engaged and motivated workforce without relying on immigrants from the EU. Improving employee engagement could prove part of the solution to the recruitment crisis.

 

What is employee engagement?

According to the Chartered Institute of Personnel and Development (CIPD), “employees who have good quality jobs and are managed well, will not only be happier, healthier and more fulfilled, but they are also more likely to drive productivity, better products or services and innovation.”

Employee engagement is a workplace approach focusing on the emotional commitment employees have to the organisation and business goals. It essentially drives the extent to which employees feel passionate about their jobs and the effort they put into their roles.

 

Company Culture

 

Why employee engagement is crucial for the hospitality sector

Employee engagement is important in all sectors, but it is more vital in the services and hospitality industries than in any other. In customer-driven sectors, staff are brand ambassadors. They are critical for creating a happy customer experience and improving customer loyalty.

Employees in hospitality roles are part of the lifeblood of the business. Brexit poses its challenges in the supply of labour. Existing employees will be faced with longer hours and have to work harder to fill the gaps. Employee engagement will help employees to feel they are appreciated and have a future in the organisation they are working in. It will also help uncover under-utilised skills.

High staff turnover is costly. It takes time and money to train a new recruit. It makes sense to invest in existing employees. Excessive turnover is disruptive and causes morale to plummet.

 

What do the best hospitality companies do to retain staff?

Last year, the uber-chic Firmdale Hotels group launched its Employee Engagement week. Without a guest in sight the group’s employees gathered across the group’s eight London hotels to network, upskill, learn and get enthused. The programme of events included inspirational talks, demos, information about company benefits, career advice and tips on building better relationships.

Speaking to hospitality magazine, The Caterer, Julia Murrell, director of people and development at Firmdale, said “I believe retention is driven around engagement. We have a diverse workforce so we have to think of new ideas all the time.”

Group operations manager, Anna Jackson, added, “We spend time on guest engagement, work on how to exceed expectations, how to turn that visit into a repeat stay, and we need to apply those principles to our team, too. We need to look at how we engage them from day one – make them feel special, understand their needs and meet those needs around every role and nationality, as we do with our guests. It is a people business after all.”

 

Employee engagement can’t be imposed. It’s all about creating a cultural shift. Here’s how:

  • Make work fun
  • Recognise employees with rewards
  • Offer ongoing training
  • Create a strong team environment
  • Encourage collaboration
  • Give your staff opportunities to develop
  • Let your employees know you value them
  • Share information
  • Give regular feedback about performance
  • Offer fair pay and competitive benefits
  • Reward creativity
  • Be open to employee feedback
  • Weed out toxic employees
  • Promote from within

Richard Branson says “Train people well enough so they can leave, treat them well enough so they don’t want to.” In an industry with a high turnover it’s easy to become too focused on recruitment and forget about existing staff.

The hospitality sector has been heavily dependent on immigration. To weather the recruitment storm, hospitality businesses need to prioritise employee engagement and retention now more than ever. Hotels, restaurants, cafes and bars need to attract UK workers and keep them. Employee engagement is just a part of the answer for future-proofing the British hospitality landscape.

 

About the author

‘Annie Button is a Portsmouth based writer and recent graduate. Annie has written for various online and print publications, she specialises in business, Recruitment and career development’.
Recent articles on a similar topic that are trending right now

The candidate experience and protecting the company brand

Does your recruitment process damage your brand?

Recruiting with no strong brand image

How can recruiters enhance the candidate experience

 

Offering support for both recruiters and on-site HR workforces, Smart Recruit Online helps businesses find and hire the best talent more efficiently. To see how SRO can improve your talent acquisition, campaign management, and candidate screening workflows, book a demo today. 

Book a demo

Annie Button


Annie Button is a Portsmouth based writer and recent graduate. Annie has written for various online and print publications, she specialises in business, recruitment and career development.


Ready to Get Started?

We guarantee, you will not use any other service like ours. It’s that good!