Post Brexit Recruitment

Post Brexit recruitment from the pointy end

As a Brit who embraced the European experience I am having a bit of an existential crisis. Post Brexit has been traumatic for many, but none more so than those Brits who live in the E.U.  I feel as if I am living in a parallel universe as every value I held dear is being changed out, reneged on, obliterated, and evaded. I read that a new disorder has been identified as Political Anxiety Disorder. I’m sure I have it! Post Brexit recruitment is already being impacted and I’m not sure how evident this is yet to decision makers. But at the pointy end – we are already seeing a shift.

Disconnect

The disconnect between the powers that be and what’s really going on is a major stand out issue for me. There was an expectation that life as many of us knows it would stop after June 23rd 2016 and there would be a tsunami of devastation. But anyone with half a brain knows that unless it is a tsunami or other meteorological disaster, negative change tends be a corrosive slow drip effect over time, rather than a sea change swell. It has a slow build up and like the 2008 recession, the impact is lasting. Many of us could feel the rumbles of down turn months before Lehman Brothers folded. We just didn’t know why. Now we do.

Anyone on the ground dealing with E.U. candidates, whether at home or in the U.K., knows that fall-out is building up.  Not only is there a reduction in job postings in many sectors in the UK, but it’s also getting harder to attract skilled  E.U. nationals as candidates for British based openings.

After talking to fellow headhunters and recruiters who work internationally, we are all making the same observations about the post Brexit recruitment situation. It obviously varies from sector to sector and the level of seniority. But for mid to senior levels of executive search this is the feedback we are encountering.

  • Brand Britain is damaged  

The reputation of the U.K. as a quirky and diverse career destination has been dented. The U.K. press may not report all the issues that have happened to E.U. citizens, but their stories of harassment and abuse are being recounted to the media in their home countries and getting traction. Based in Brussels, I had heard of the ill-treatment of  Eastern Europeans in the U.K via European media sources, long before my British colleagues had the faintest inkling.  One Czech candidate told me “I wouldn’t want to be stuck on that island post Brexit.”  

There is no doubt that Britain is developing a reputation as a culture where racism is embedded.  Some say it has always been there. Others believe that the xenophobic nature of the Brexit campaign has fuelled it. This does not only apply to Eastern Europeans or blue-collar workers. Senior executives of all nationalities report negative reactions and some express concerns for their children in school.

The fall out will be particularly felt In sectors where there is a skill set shortage with a reliance on non-U.K nationals to fill the gaps.

Read: Post Brexit Talent Drain 

  • Hard Brexit protection

One  of the concerns of candidates contemplating a transfer or applying for a new job in the UK is what will happen if a hard Brexit impacts them. Will they have to pay for a visa or even have to repatriate?  Recruiters are starting to be asked for clauses in their contracts to cover negative contingencies such as a visa support and repatriation.

  •  Salary protection 

Another concern is the current drop in the value of the pound, but also other volatile currency shifts. Many candidates have financial commitments in currencies other than they one they maybe paid in and are looking for salary hedging clauses. Candidates currently paid in sterling with commitments in Euro have seen a recent negative impact on net income.

  • Protection of other rights  

Prof Alan Vaughan Lowe QC a leading barrister who specialises in international public law told a House of Lords panel last month that it was “inconceivable” that the employment laws would survive entirely intact. He maintains that there is  “zero chance EU citizens in UK will keep same rights post-Brexit”  This massive level of uncertainty makes candidates wonder what they should be looking for from employers if they transfer internally within an organistion to the U.K. and where they stand longer term. The lack of clarity is creating a culture of uncertainty, which always  deals a damaging blow to any business or economy.

Not unsurprisingly the reverse situation does not seem to apply, in my experience at least. To date I can report no concerns from candidates contacted to relocate to Europe and even an increase in numbers open to international assignments.

If your company struggles to identify and attract the right candidates,for all executive search requirements contact me.

 

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