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Post-referendum recruitment strategy for SMEs

October 13, 2016  /   No Comments

Phil Foster

Post-referendum recruitment strategy for SMEsFor small and medium business (SME) owners, one of the most important post-referendum issues is how this affects their recruitment strategy.

UK businesses of all shapes and sizes have, at some point or another, relied on the European Union to supplement their workforce. The UK is still in the midst of a skills shortage, and EU migrants have provided many of the vital skills that we were lacking. There is a chance that the UK will no longer be the talent magnet it used to be, resulting in more bureaucracy and a reduced candidate pool for SMEs to dive into.

However, the alternative view is that the Brexit will actually improve recruitment options for UK businesses. There is a very real possibility that the UK may now introduce a points-based system such as that used in Australia, which could result in us welcoming in higher quality candidates.

The ability of the UK to allow in more migrants from outside of the EU, without exceeding any immigration quota, will also be something to keep an eye on. By no longer having to give preference to EU workers, opportunities open up for those coming to the UK from India, China and beyond. This is surely great news for those seeking STEM candidates.

However, the status of current EU migrants and whether they will have to return to Europe, as well as how easy it will be for people to migrate into the UK for work is not yet known. While the freedom of movement policy may still apply if the UK Government chose to remain part of the single market, there is a possibility that the need for visas will complicate the recruitment process, making it more expensive and therefore deterring SMEs from hiring non-nationals. Ultimately, this may hinder how businesses grow in the future.

EU regulations

Over the years as a member of the EU, we have been obliged to adhere to numerous rules and regulations either directly, via EU legislation, or in-directly via our own Parliament implementing or supplementing EU directives and laws.

Now we have chosen to leave the EU, it goes without saying that once we have left, then direct EU legislation will no longer apply. However, what about the directives and supplementary policies that had been passed by our Parliament? Will they still apply? I think this is where confusion may arise.

In the long term, I can’t see the loss of direct EU legislation having a drastic impact. Especially in corporate governance, the UK often implemented changes way before the EU passed the agreed legislation. This shows that as a nation we have always been accepting of regulation and, more often than not, instrumental in its development.

The UK has always regulated taxes domestically, so leaving the EU should not harm anything there. And in terms of trade, if any deal is to be struck, the UK would probably have to comply with EU regulations in order to continue to do business.

Labour and skills

In order for the UK to attract the best workers and the highly skilled, we have to have favourable employment laws, so there is nothing to fear there.

In terms of EU workers currently working in the UK and the future of immigration, any negotiation deal involving trade agreements will probably require us to still give priority to those people who are from mainland Europe. While quotas and demands may reduce slightly, opening up opportunities for workers from the likes of India and China, it is highly probable that immigration from the EU into the UK will continue and EU workers will retain their positions.

General uncertainty for businesses

Now the initial shock of Brexit has subsided, uncertainty has also become less pronounced. As negotiations get underway and deals are struck, the future for businesses will become clearer. Obviously we will never know exactly what will happen, but in the long term it will all fall into place.

Whatever the outcome of the top-level negotiations, businesses will continue as usual and it is our job, as business owners, to keep things running the way we always have done to the best of our abilities. Yes, there may be changes ahead, but if you have a plan in place to account for any potential market abnormalities, and remain adaptable, we really should have nothing to fear.

Admittedly some businesses could feel the pinch, and some sectors may be affected more than others, but that is not to say that the future is bleak. We have been given an opportunity to find our feet outside the EU and that’s what we should see it as; an opportunity. Business survived in the 1960s before the EU, and I am sure we will find a way to survive once we have left.

 

Phil Foster is Managing Director of Love Energy Savings

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  • Published: 7 years ago on October 13, 2016
  • Last Modified: October 12, 2016 @ 6:40 pm
  • Filed Under: Industry Insider

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