Today, MPs are preparing for a ‘meaningful vote’ on whether to back the Prime Minister’s deal for leaving the European Union (EU).
The BBC reports that the debate – taking place later today at the House of Commons – will mark the end of five days of consecutive debate on the Brexit deal. This decision of British MPs will decide the fate of the country’s 66million citizens for years to come, according to CNN.
If MPs vote to support Theresa May’s Brexit deal, it will set the country on its final road to leaving the EU on March 29 2019 with a pre-decided, negotiated deal with the EU. However, if they choose to vote against it, the country will be in a state of limbo.
[text:29565]
And, if this deal is rejected, May will have just three days to come up with ‘Plan B’.
So, ahead of tonight’s vote at 7pm, here are three ways that Brexit is already affecting HR and what you can do to lessen the impact.
Recruitment
HR are likely to have come up against some of the struggles when it comes to attracting international talent already.
Last year, HR Grapevine reported that a whopping 96% of recruiters and hiring managers would have to rethink their hiring strategies to cope with Brexit. And with little clarity on the outcome of a ‘deal’ or ‘no deal’ Brexit until tonight’s vote is cast, HR would be wise to consider their recruitment strategies.
[card:29523]
The Recruitment Sentiment Survey conducted by LinkedIn found that hiring professionals are seeing a negative impact on international hiring into the UK. Last year, this saw 37% of recruiters seeing a decrease in the number of candidates from Italy, 35% reduction from France and Germany, 32% from the Netherlands, 29% from Spain and 33% from the other EU 27 countries.
And, while the uncertainties prevail, this poses the question as to whether recruiters should be broadening their searches further afield for candidates post-Brexit.
David Morel, CEO and Founder of Tiger Recruitment exclusively told HR Grapevine that it remains unclear as to how Brexit will affect access to international talent.
He added: “Undoubtedly, recruiters who stay at the forefront of emerging trends will have the upper hand when it comes to sourcing top candidates.”
Technology
Another overarching area of concern for HR amid the Brexit concerns is the future automation of roles sought to cope with the potential skills shortages sparked by Brexit.
[cardl:29887]
According to the ‘Brexit: retaining talent through change’ report by Adecco Group, one third of UK employers are already planning on hiring robots to combat skills shortages.
The research found that 34% of UK managers are considering automating part of their business to prevent the reliance on hiring humans.
This decision comes as 70% of managers think that leaving the EU will make skills harder to hire for.
And if this is the case in a post-Brexit world, HR need to consider the changing nature of the workforce and make reasonable adjustments for any laid-off staff.
Economy
The outcome of the Brexit referendum has reduced the value of UK companies by 16%, according to research from the University of Bristol.
Lead researcher, Dr Piotr Korczak, Reader in Finance at the School of Economics, Finance and Management at the University of Bristol explained that the referendum result started a period of unprecedented political uncertainty. “It is difficult for companies to plan, investment is put on hold, and consumers cut spending,” he said.
[text:29982]
The study found that prices of companies in the bottom quarter of the internationalisation ranking dropped by 21% on average, while those in the top quarter fell by eight per cent.
This may be particularly problematic for HR departments in the financial and consumer-facing sectors, so they would be advised to consider the market that their organisation is situated in and plan their HR strategies accordingly.
