The business world is trying to make sense of the implications of Brexit in a world now characterized by uncertainty. It was clear that this shock result, from which we are still reeling, was so unexpected that almost no one had a post Brexit plan. Against many unknown factors, businesses are trying to create strategies for changes which will significnatly impact the workplace. Practises related to E.U. rather than U.K. legislation, will be examined as new agreements are set up. Some experts are saying this could take up to 5 years. One of the major elements will be the rights of E.U. workers in the U.K. and U.K. workers in the E.U. But what had not been anticipated is an immediate talent drain as skilled workers seek early voluntary repatriation or relocation to other parts of the E.U.
Yep. That’s right – some people actually want to leave now! Can you believe that?
The highly emotional and divisive referendum campaign and the subsequent leadership debacle, dealt a savage and damaging blow to Brand Britain on the global market. We now live in a new age of uncertainty. the subsequent leadership debacle, dealt a savage and damaging blow to Brand Britain on the global market. We now live in a new age of uncertainty. The CIPD reports that in general, 44% of working adults say they feel pessimistic about the future as a result of the UK’s vote to leave the EU, while one in five say they feel their job is less secure. Unfortunately, in the wake of this, we have witnessed an astonishing and aggressive xenophobic backlash against non-UK nationals studying, living and working in the U.K. Many European nationals are now reporting “feeling unwelcome” in a country which they have made their home, some for many years.
The U.K. government has made some half-hearted attempts to allay the fears of E.U. residents in the U.K. With a lack of definitive statements, many are unconvinced. Head hunters and recruiters are reporting increased numbers of spontaneous CVs and applications from individuals looking to leave the U.K, – now, or as soon as possible. This is also my experience.
The Talent Drain
What seems surprising is that no one factored in a potential talent drain before the referendum. It should have been evident that if politicians run divisive campaigns based on hate, specifically targeting non-U.K. residents, the U.K. will be perceived as (and even become) a less attractive place to seek employment for workers who have choice. By this I mean those with strong transferable or difficult to find and attract skills.
The UK Commission for Employment and Skills’ (UKCES) Employer Skills Survey 2015 of 91,000 employers has already reported a chronic skill shortage even before the referendum. The people who are reconsidering their positions are people who can go anywhere. In the mean time the talent drain has started. Other E.U. nationals who might have had their eye on a U.K posting particularly London, are now re-thinking their career strategies.
@DorothyDalton I considered London as a possible next step in my career; not anymore
— Celine Schillinger (@CelineSchill) July 29, 2016
What is behind this talent drain?
These are just the comments I’ve had to indicate a potential talent drain.
- Uncertainty: a Commodities Analyst with a Spanish based London bank suggested that “the U.K. is showing a post Brexit slow down. Uncertainty and a lack of confidence are damaging for everyone in the short-term. For my career, it would be better to move to another European financial services centre. I speak German and French so could move to Paris or Frankfurt. Dublin would also be a possibility. It’s anticipated that some Banks will move their whole operations so I may wait a while and see what happens , but I have sent my CV out. The current atmosphere is depressing and gloomy.”
- Xenophobia: a French strategy manager with a global logistics company said “there is definite backlash against foreigners now, which was whipped up hysterically before the vote and is being fuelled even now by a partisan press. I can handle it fine, but the kids are being targeted in school for their French accents and that’s not O.K. It’s not just against low paid Poles.” A German account manager also reported abusive comments and being told to “go home.” This is apparently rife.
- Fear of housing market collapse: others who have bought property in the U.K. particularly the South East at premium prices are concerned about a possible fall in house prices leaving them in a negative equity situation, especially as the pound has fallen to the lowest it’s been in years. They see an early departure as vital.
- Concern about new requirements: many would rather leave now voluntarily, than be made to go in two or five years’ time. This would be dependent on the type of trade deals that are negotiated and there are concerns.
- More openings now: there is a feeling that there would be more international openings in other E.U. centres now, rather than later. There might also be less competition for those jobs.
- Concern about reduced conditions: a Marketing Director from Stockholm indicated concerns about employment conditions deteriorating “The only way the U.K can offer advantages to international organisations is to offer greater tax breaks (already happening) and greater flexibility with employment conditions. This will work in favour of the employer. I anticipate a loss of employment protection similar to the type of systems in place in the U.S. which would be negotiated with a T.T.I.P. deal. We could see a shift to very exploitive employment practises I fear.”
- Citizenship: with the question of the right to work under investigation, perhaps requiring British citizenship, the uncertainty around this issue is a concern for some. They would want to maintain dual citizenship so they could work in the U.K. and Europe.
What did they expect?
A Belgian research scientist told me “There is no doubt that a hostile environment has been created by the politicians and press during the referendum campaign against multiculturalism. Beneath the British veneer of outward civility, it’s obvious now there is a seething layer of resentment towards foreigners which has become clear to non-Brits in the last month. Although I am not a direct target-(yet) the U.K. is just not an easy place to be at the moment for overseas workers or students.”
Over the next months we will find out how things play out. Currently everyone seems to be carefully treading water. A more cynical H.R. analyst suggested that those E.U. nationals with strong skills will eventually be able to command premium salaries in the U.K.. “Most politicians have no idea of the true level of skill set shortage in the U.K. Brexit was not expected and almost no one had a plan. Individuals should just bide their time. By 2020 if anyone leaves the U.K., they will probably be able to return at even higher salaries. And for anyone currently paid in Euros or dollars – they are already ahead.”
And this is even before you factor in highly skilled U.K nationals wanting to jump ship.
Interesting thoughts. What do you think?
If you want to connect with top talent get in touch now!