The UK voted to leave the EU over two years ago. While negotiations are still being finalised, Brexit has already had a bigger than expected impact on talent acquisition. Many British businesses rely on specialist skills from EU countries to supplement their workforces, however, a recent study by CIPD and The Adecco Group shows that the number of EU-born workers in the UK has fallen by 95% year-on-year.
The current job market is in flux. Recruiters are under immense pressure to help their clients find the talent they need – but many of the traditional ‘tried and tested’ methods aren’t delivering results. A recent LinkedIn study shows that the biggest challenges facing recruiters are talent availability and business uncertainty.
To stay competitive and profitable, recruitment companies need to go above and beyond job placement to act as employment consultants. This involves advising companies in the UK on how to revise job roles, benefits, and salaries to make themselves more attractive to overseas applicants.
As Brexit unfolds, recruiters have an important and necessary role to play in assisting clients and candidates to weather the storm. Here’s a closer look at the crucial challenges to be aware of, and some advice on how to address them.
Businesses are hiring less
PwC conducted research in the lead up to the referendum that indicated a 3 to 5.5 percent drop in GDP by 2020 should the UK vote to leave. The effects of Brexit were felt almost immediately after the referendum results were announced, with the pound sterling falling from 1.5 to 1.21 against the US dollar. The exchange rate has since fluctuated, but imports are generally costing more while exports are bringing in less.
This general uncertainty has had a significant impact on the recruitment industry already. Recruiters in the UK have noted a steady drop in international hiring. The LinkedIn study indicates that over 30% of recruitment companies are seeing a decrease in demand for their services from core European markets including France, Germany, Italy, and the Netherlands, to name just a few.
Some industries are faring better than others, but Brexit has had a notable impact on businesses in the healthcare, manufacturing, construction, education, banking and finance, and retail sectors. Naturally, businesses are taking greater cautions when planning how they use their budgets. There’s a strong chance they may not be able to assign as much budget to hiring as before.
Candidates are looking elsewhere
Nobody is entirely sure what Brexit is going to look like once the deal is finalised next year. Freedom of movement for citizens of member states between the UK and EU countries may be affected. Or, the UK could negotiate a deal to keep this in effect – even if it is no longer a full member of the trade bloc. Either way, international candidates don’t know if their rights to work in the UK will remain unaffected, and this has undoubtedly influenced the drop in the number of European applicants.
According to LinkedIn, 39% of recruiters have found EU candidates are increasingly reluctant to move to the UK in general, and to London in particular. Given the current lack of uncertainty surrounding free movement, borders, and passporting, Britain’s lack of appeal is hardly surprising.
Making the most of available skills
One positive outcome of Brexit’s impact on the recruitment industry is the necessary move towards more diverse hiring. Pushed to think innovatively as traditional hiring strategies fail to deliver results, recruiters are encouraging candidates and clients to step out of their comfort zones to find the jobs and skills they’re looking for. This is an important shift, but it must be adopted more widely.
Recruitment companies need to get closer to their clients than ever before. When recruiters and HR teams work together, they can take advantage of their combined market knowledge and insights to build more informed, relevant strategies. Hiring strategies and workforce planning must align to achieve faster, better results – the talent is out there, but efficiency, collaboration, and the smart use of data insights are crucial.
When talent appears to be in short supply, using technology to identify candidate referral and redeployment opportunities is a crucial tactic. In a similar way, now is an excellent time for recruiters to take a fresh look at their existing candidate databases and review opportunities for upskilling and reskilling. A successful recruitment strategy looks at a diverse pool of candidates, but also encourages and supports existing talent to develop their capabilities to meet specific client needs.
Recruiters need to think laterally to understand how candidates’ skills that may appear unsuitable at first glance, can suit other roles. In essence, they must move away from simply rejecting unsuitable talent, and towards referring them to other positions. A successful recruitment strategy and a healthy workforce are underpinned by making the most of all available skills.
Time to reassess what recruitment means?
To attract talent during uncertain times, recruiters need to reassess what it really means to work in recruitment. It’s no longer just about sourcing candidates and placing them. Recruiters need to start providing workforce solutions and employment strategies that address challenges that political, economic, and social changes – such as those warranted by Brexit – present. This means getting involved in, for example, long-term planning and hiring strategies, advising on workforce structure, and developing new job roles.
As Brexit approaches, the recruitment sector will become increasingly competitive. To withstand the current and upcoming challenges, recruiters need to think smart and approach recruitment with bolder, more diverse strategies.
