With just under a year to go until Brexit, a worrying 96% of recruiters and HR managers are having to rethink their recruitment and hiring strategies to cope with Brexit, according to new research from LinkedIn.
Indeed, 46% of respondents are seeing a ‘big’ or ‘huge’ impact as the UK becomes less attractive to international talent.
The LinkedIn’s April Workforce Report, which examines job movement across the professional networking site’s 24m members in the UK and is designed to provide members, businesses and policymakers with evidence-based insights into the changing shape of the UK workforce, also shows that the UK is losing talent to the European Union.
This month the report also included the results of an independent ‘Recruiter Sentiment’ survey that gauges UK based in-house and agency recruiters’ confidence in their ability to fill available roles: reflecting the trends they are seeing in the marketplace.
The survey found that hiring professionals are seeing a negative impact on international hiring into the UK, with 37% of recruiters seeing a decrease in candidates from EU countries over the last quarter.
And it’s not just EU candidates being put off by Brexit either as recruiters are seeing a decrease in hires from such countries as the USA, Canada, Australia, South Africa too. This offers the worrying prospect that any fall in EU candidates won’t be filled easily by those from non-EU countries.
The figures highlight the negative impact on international hiring into the UK from the following countries over the last quarter:
- Italy – 37%
- France – 35%
- Germany – 35%
- Netherlands – 32%
- Spain – 29%
- Other 27 EU countries – 33%
The decrease in hires from non-EU countries:
- South Africa – 27%
- Canada – 27%
- Australia – 26%
- USA – 25%
Josh Graff, UK Country Manager at LinkedIn commented on the results of the survey:
“Changes in migration take a long time to bear out – but today we can see that the UK has gone from being a country that gains talent from EU nations, to one that loses professionals to them. For business leaders there are three things you can do now: talk to your HR team and find out what impact this is having on you, consider new sources of talent – including upskilling existing employees, and make sure you have conveyed your talent needs to professional associations and the government.’’
Graff continued: “The last two years have also seen a fall in the number of workers moving to the UK from elsewhere in the world. This isn’t people anticipating new visa rules; instead the perception of the UK being a good place to advance your career appears to have faltered. The UK is still a fantastic place to do business, and those thinking about relocating here should bear in mind that the caution of others could be their opportunity.’’
The survey also found that hiring professionals found the following were the top factors impacting hiring strategies because of Brexit:
- The availability of talent – 40%
- Business uncertainty – 38%
- Reluctance of candidates to move to the UK – 36%
- Competition from international businesses – 28%
The top sectors which according to talent professionals are impacted because of Brexit are:
- Healthcare – 13%
- Manufacturing – 11%
- Construction – 11%
- Education – 11%
- Banking and finance – 11%
- Retail – 10%
Jon Addison, Head of Talent Solutions at LinkedIn UK, offered some tips to ensure that employers and recruiters can still find and attract the best talent.
“Make more of what you already have: think about how you could upskill your existing team to ensure that your business is well equipped to navigate the more competitive external hiring landscape,” he said.
“Elevate your brand beyond borders. Make it appealing to the talent you need now, and in the future, to ensure your access to the talent pool you need – from the UK and abroad – is maintained.”
Addison concluded: “There are three important steps businesses can and should be taking to address the ‘access to talent’ challenges they face since the Brexit vote. “First, ensuring that long-term hiring strategies and workforce planning are aligned with business priorities is vital. HR teams should be leveraging workforce insights and data to ensure that in combination with their recruiters’ instincts, they make informed decisions and plan to hire talent not just for skills their business needs now, but will need in six to 12 months time too.”
“Second, make more of what you already have: think about how you could upskill your existing team to ensure that your business is well equipped to navigate the more competitive external hiring landscape. Think learning and development first.”
“And third, elevate your brand beyond borders. Make it appealing to the talent you need now, and in the future, to ensure your access to the talent pool you need – from the UK and abroad – is maintained.”
The survey didn’t just highlight concerns, despite all the unease about the impact of Brexit the overall confidence amongst talent professionals is relatively high as 71% still feel ‘very’ or ‘extremely’ confident about their ability to recruit the right talent and 48% have seen an increase in hiring over the first quarter of 2018. Over two-fifths (44%) have seen no change in hiring rates.
For those who have seen an increase in hiring, the main reasons behind this have been:
- Business growth – 56%
- More vacancies – 45%
- More suitable candidates on the market – 32%
- Sector specific needs – 28%