Monday January 23, 2017
The decision to leave the European Union in June 2016 was immediately met with huge amounts of uncertainty in business. The pound crashed and many of the questions we had are still left unanswered. Brexit will undoubtedly have an impact on talent management. What that impact will be, is still somewhat unclear.
Despite what a lot of people predicted there has been some positivity and growth in the wake of the referendum. The Recruitment and Employment Federation (REC) found that although permanent placements experienced a shock the month following the referendum, recruiters have now seen growth in placements and billings have returned to the pre-referendum figures.
UK unemployment also managed to hold steady towards the end of 2016 and was at an 11-year low of 4.8% at the end of October.
What we have seen since the referendum is an increase in hiring for industries that rely on local talent. Construction and energy being two of the industries that saw modest levels of growth. The uncertainty around what the conditions of Brexit will mean has created worries in the industries that rely on hiring talent from outside of the UK. Could we be cut off from some of the skilled talent found over the world. The question remains as to whether current workers are able to or would want to stay post Brexit. And will firms that rely on external talent be able to bring in new talent?
It’s important for firms to reassure employees of their standing in the company and that likely, their positions will remain. Clarity on the terms and deals that will be made during Brexit are still unclear. Until then we are unable to confidently say what the direct impact will be on talent management.
In November 2016, we hosted an insight seminar into what Brexit means for businesses. You can find out more about what Dr Katerina Kolyva said in our last blog post.