Following Theresa May’s historic defeat on 15 January 2019, it is clear to see that the handling of the Brexit process has been an utter shambles, to the extent that it is reasonable to state that if politicians were business leaders, they would have been sacked long ago.
The only way to move forward and end the chaos and uncertainty is for May to immediately take the prospect of a no-deal Brexit off the table in order to make space for a multi-party consensus. Brexiteers will hate it but, in doing so, Labour can finally be drawn into negotiations that might result in a way out of this mess.
In order to find some unity, clarity and a workable solution, Article 50 must be extended to allow politicians to come together and put aside their ideological stances, which have so far hindered every step of the process to the detriment of the country.
There has been a lot of talk since May’s Brexit-deal defeat – which certainly came as no surprise to me – from politicians about the need to have ‘grown-up’ conversations. As long as the prospect of a no-deal Brexit is on the table then this sentiment appears as nothing more than a horrible and hollow lip service. As a business owner, I am sick to the back teeth of our politicians being unwilling or incapable of participating in cross-party talks – they have to immediately start talking to one another.
It is painful to consider the prospect of leaving the EU without any kind of deal in place – this would absolutely be the worst-case scenario. If this should happen, we would be forced to operate under World Trade Organisation regulations and to do so the government would have to pass a whole swathe of new legislation. As this is something that I suspect our MPs are wholly unprepared for, this would lead to the complete paralysis of UK business as we wait for legislation to be passed, which could take months. In the meantime, all international trade would cease, resulting in the pound crashing, the price of imported goods going up and businesses forced to tighten budgets through recruitment freezes and even redundancies.
Those industries that depend upon import/export with the EU will be particularly affected, such as manufacturers in the automotive trade, as well as the food industry; some 30 percent of all of the UK’s food and drink supply comes from mainland Europe. With this supply effectively cut off, if only for the short term, layoffs from the shop floor right up to senior management will undoubtedly come about. A no-deal Brexit must be avoided at all costs.
Since the Brexit process began, nearly two years ago, the impact on the recruitment industry has been varied and profound. Workers from the EU across a wide range of sectors at all levels have been leaving the UK, creating a talent gap, which companies are struggling to fill. The direct impact of this is most evident in the healthcare, hospitality and construction industries, which rely heavily on European employees to make up their workforce on the front line of services. We may see a mass exodus of these EU nationals returning to the security and certainty of their home countries, leaving many services dramatically understaffed within a short time frame. A sudden shortfall of staff in healthcare would leave the sector unable to cope – services would be reduced and standards could drop to dangerous levels as those who are left behind are stretched too thinly. Likewise, the housing and construction industry is nothing without its people on the ground.
However, there are also the indirect losses to consider from those international companies who have taken one look at the ongoing Brexit debacle and have chosen not to invest in the UK, to global firms who are moving their European headquarters to the continent. Unilever already announced last October that it is relocating its HQ from London to Rotterdam, following in the footsteps of Panasonic who announced a similar move in August 2018.
If we leave the EU in March without a deal I fear for the implications this will have across the board due to the end of free movement across the Channel. EU nationals may return home or simply stop applying for jobs in the UK, leading to a serious deficit of much-needed experience and skills in British industries from the professional services to our universities and financial sector. While this may benefit British jobseekers in the short term – who could have greater bargaining power in their job negotiations due to the decreased competition – businesses are likely to be held to ransom unless they get creative with how they source talent. The only path I can see is for Britons to look beyond the EU and expand their scope globally to those not affected by the terms – or lack thereof – of Brexit in order to fill our predictable skills gap. British companies will need to be savvy in how they pitch themselves to an international audience, and take into consideration the particular needs, wants and expectations of the targeted nationalities when developing their job descriptions and benefits packages.
However, the irony of looking even further afield than Europe for talent is that it defeats one of the most contentious issues for which Brexit was introduced. Immigration will have to continue in order for UK businesses to stay afloat and flourish. Although we may look like an island, our growth depends on the exchange of ideas, skills and knowhow with those beyond our borders.
On the other hand, if a deal is struck – unlikely as it sounds – and we manage to avoid the controversial backstop we may finally be able to breathe a sigh of relief. A great deal of the debilitating effect of Brexit is the uncertainty that surrounds it and UK businesses are crying out for a decision to be made in order to adjust and plan accordingly for the future. Although the chances of a deal that satisfies business leaders is looking as unlikely as it ever has, if our MPs are able to put aside their differences and finally produce an agreement that leaves our relationship with the EU intact and in sound working order, then we could be a great position. Historians may even look back at this time as the start of the great post-Brexit economic boom, characterised by greater collaboration, development and growth, the likes of which have not been seen before. However, this appears extremely unlikely to occur.
Until Brexit is resolved, one way or another, business leaders are understandably nervous about making recruitment decisions. The cost of recruitment can be upwards of £1,000 per employee, and with many industries facing an unknown financial future, they are unlikely to want to commit the time and resources into this expenditure. As such, many companies are putting their recruitment of permanent staff members on the backburner for now until after 29 March 2019 passes. Even then, many will wait until the dust has settled and they can assess the lay of the land before moving forward to reassure their stakeholders that bringing in new talent is the best step forward.
However, there is a silver lining, albeit a weak one, for both employers and employees who are nervous about post-Brexit Britain. There is one area that is booming despite all of the uncertainty; interim, temporary and contract working. Life does not stop simply because the government cannot make up its mind, and many companies are now seeking alternatives to permanent hires in order to ensure the wheels do not just keep turning but also keep on growing. The benefits of hiring an interim worker has never been more evident than in the last 18 months. Organisations can bring in individuals, who have the ability to add considerable value to a company, for a fixed-term or an ongoing basis without having to worry about any long-term consequences should Brexit necessitate downsizing in the future.
With the original Article 50 deadline looming ever closer, and the government under May maintaining its current course of in-fighting, political grandstanding and empty words, I urge business leaders to start thinking now about the recruitment challenges they may face over the coming months and prepare accordingly. Consider first how you can ensure your current staff do not leave – retention of talent is half the game. If it is inevitable that people will have to leave, then look into how you can upskill junior employees or move individuals across departments to give ambitious workers sideways opportunities as well as upwards advancement. Finally, as mentioned earlier, it may be time to start looking further afield than the EU to plug the talent gap, though this will take time and consideration to prove effective and affordable.
By Jo Sellick, Managing Director, Sellick Partnership
About the author
Jo Sellick is the Managing Director of professional services recruitment specialist Sellick Partnership. Since forming in 2002, Sellick Partnership has gone from strength to strength as one of the most respected specialist recruitment agencies in the UK. In 2017 the business celebrated 15 years since Jo set up the firm with just a laptop and a mobile phone. Now the business employs over 90 staff, has seven offices nationwide and has an annual turnover of over £38 million.
As well as his business interests Jo also commits a lot of his time to helping charitable causes, and states that charitable commitments lie “at the heart of Sellick Partnership”. His ever popular Manchester Professionals’ Cricket League (MPCL) will return for its tenth year in 2018, with plans to start a similar League in Yorkshire.
This, and the many other charitable commitments he undertakes have raised well over £80,000 for charity since 2002. A keen cricketer himself, in 2002 Jo was also elected to the committee of The Lord’s Taverners – a charity dedicated to giving disabled children a sporting chance – showing his dedication to helping people in need.
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