There are still many unknowns after the vote for UK to leave the EU was decided. With issues like immigration and trade agreements taking priority, where exactly does the recruitment industry stand?
Let’s face it, Brexit is almost certainly going to affect EU citizens’ choices to work in the UK, and UK citizens wanting to work in Europe. So how exactly will it impact them? We wish we had a crystal ball so we could tell you.
The UK may try to agree free movement of people with the EU; one option is to assume that they will go for a controlled option that permits entry only on certain circumstances or targeting a particular population. You will have heard discussion of the Australian-based points system.
Most likely it won’t look precisely like the guidelines currently applied to non-EU immigrants, since a large amount of EU citizens employed in the UK actually do jobs that are not highly paid or require an advanced degree.
A majority of Europeans (in the UK) work in hotels, construction, catering businesses, and even as seasonal workers in agriculture. If the UK still desires to have access to these people, they will have to design immigration regulations to account for them.
Having complicated regulations will only add to the already confusing situation in the UK and Europe. Another area of concern is how a reduction in funding from the EU for scientific research and numerous other areas, will affect British educational institutions. If funding does reduce (which it most likely will) the trickledown effect could mean that the UK may begin to experience a brain drain. Both these concerns are further explored in a previous article titled Can your recruitment agency survive Brexit?
As the country moves forward from the vote, there is still much uncertainty in the air. We know many UK businesses have started to freeze hiring, which puts recruitment agencies in a predicament. There may be a corresponding rise in the use of temporary staff but if your agency only deals with perms, that might be of little consolation. However, there are steps recruitment firms can take to minimise losses during this time.
One such method is by outsourcing some core and non-core activities such as; database cleansing/re-generation, CV formatting, timesheets and payroll process and reference chasing/pre-employment screening. Most outsourcing agencies operate on a flexible or fixed rate model. This allows the recruitment agency to be much more in control of their expenditures and processes and ensure they are geared up to be as efficient as possible.
Recruitment process outsourcing is about developing a relationship with your outsourcing company. It’s not about just paying someone to source some candidates; it’s more about understanding where support is required within your company and helping you to utilise your strengths more efficiently.
Unfortunately, at this moment no one really knows what will happen in the UK. Amidst this chaotic landscape, people have businesses which are operating and which they need to ensure will continue to run as smoothly as possible until there is some clarity. So as they say ‘keep calm and carry on’.