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Brexit ReportMcGregor Boyall Associates
2
Impacton
Hiring
No65%
Yes19%
Not sure16%
Overview
Following the UK’s decision to leave the EU it seems the only thing that is certain at the moment is that nothing is certain! To try and gain some insight we asked our clients
for their initial thoughts on the impact of the decision on future hiring plans and business objectives.
Key points to highlight:
> 65% of respondents stated that the UK’s decision to leave the EU has not impacted their immediate hiring plans.
> 76% stated that no hiring freeze is in place and it is business as usual.
> Only 10% of respondents already have a defined contingency plan in place for Brexit.
> Of the 19% that said their hiring plans have been impacted, Operations and Technology were the areas most likely to be affected.
> 51% of respondents believe there will be no need to relocate any roles.
> Only 6% of respondents stated that they would have to relocate roles to within the EU following the decision to leave.
> Almost 60% of respondents see Brexit as a positive move for UK Employment Law.
> However, 57% felt the lack of free movement across the EU would affect their ability to hire skilled workers, particularly in areas that are already suffering a shortage of top talent.
65% of respondents stated that the UK’s decision to leave the EU had had no impact on their hiring plans for the immediate future, with the Public Sector and Financial Services feeling the most strongly that it is business as usual on the recruitment front.
No Impact on Hiring - by Sector
Public Sector 80%Financial Services 75%Tech / Media / Telecoms 66%FMCG / Retail 67%Professional Services & Consulting 56%Pharmaceutical 50%
Has the UK’s decision to leave the EU impacted your decision to hire in the immediate future?
0 10% 20% 30% 40% 50% 60% 70% 80%
2
Less than 10%
11% - 30% 31% - 50% 51% - 70%
0
20%
10%
30%
50%
70%
90%
40%
60%
80%
100%
Less than 10%
11% - 30% 31% - 50% 51% - 70% More than 71%
More than 71%
Technology
Sales
Finance
Marketing
Operations
Human Relations
Legal/Compliance
Risk
For those who said there would be an impact on hiring, the functions most likely to be affected are:
0
20%
10%
30%
50%
70%
90%
40%
60%
80%
100%
Less than 10%
11% - 30% 31% - 50% 51% - 70% More than 71%
No tem-porary / contract staff
What % of your existing temporary / contract staff come from the EU (exluding UK nationals)?
What % of your exisiting permanent employees come from the EU (excluding UK nationals)?
By Sector
Public Sector
FMCG/Retail
Professional Services & Consulting
Tech/Media/Telecoms Financial Services
Functions most likely to be affected
68%
62%
37%
37%
37%
32%
28%
19%
0
20%
10%
30%
50%
70%
90%
40%
60%
80%
100%
0
20%
10%
30%
50%
70%
90%
40%
60%
80%
100%
3
It was acknowledged across all sectors
that there is a possibility of roles
having to be relocated as a result
of the leave vote. However, half of
respondents felt that this wouldn’t be
the case.
“Only 6% stated that roles would have to be relocated to other EU Countries.”
It was extremely positive to hear that 76% of respondents said no hiring freeze had been put in place as a result of the Brexit result and it was just business as usual, with confidence particularly high in the Tech / Media / Telecoms Sector, Public Sector and Financial Services.
Times look tougher for FMCG / Retail who had the lowest number of respondents stating “business as usual” at just 33%.
Will the UK’s decision to exit the EU mean that you will have to relocate roles?
No hiring freeze. Business as usual 1 - 3 Months 3 - 6 months 6 months - 1 year Longer than a year
Yes - to outside the EU
Yes - to within the EUIt’s a possibilityNo
If a hiring freeze has been put in place, how long do you envisage this will last?
Are we likely to see hiring freezes as a result of the vote?
Are roles likely to be relocated?
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
3 4
Interestingly, the view on whether the UK leaving the EU would have a
positive effect on UK Employment law differs hugely depending on the sector.
75% of Public Sector respondents felt that leaving the EU would have a negative impact on employment law in contrast to the Financial Services
Sector where 71% of respondents felt that Brexit could have a positive effect.
Unsurprisingly, respondents in the Public Sector felt they will be the most
affected by the lack of freedom of movement across the EU with 75%
stating it will affect their ability to hire and 100% of respondents predicting
having to sponsor more skilled workers from outside the EU.
In comparison, opinion in the Tech / Media / Telecoms Sector was more
evenly split with 58% stating their ability to hire will be affected and 42% saying
it won’t have an effect.
52% of our clients stated that they expect to have to sponsor more skilled workers from outside the EU if the free
movement of workers is restricted.
As well as having a large impact on the hiring in the Public Sector, the FMCG / Retail Sectors also felt they would have to source talent from further afield in
order to fill skills gaps and keep up with demand.
Yes No Not yet, but we are working on it Not sure
Do you think that the future will be positive with regards to employment
law in the UK?
Do you foresee the lack of free movement across the EU affecting your
ability to hire?
Do you expect to have to sponsor more skilled workers from outside the EU if the freedom of movement in the
EU stops?
Do you have a defined contingency plan in place to support your business through the exit?
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
Future of UK Employment Law
Plan for Brexit?
Effect on future ability to hire
Likelihood of having to source more skilled workers from outside
the EU
Yes59%
Yes57%
Yes52%
No41%
No43%
No48%
mcgregor-boyall.com
Overall, the outlook on hiring remains positive with respondents stating the Brexit vote will have little or no impact on current business objectives, although it will be interesting to see how this evolves as the exit negotiations begin to take shape.
Of those that felt there would be an impact, technology and operations were highlighted as the key areas likely to be affected, followed by Finance, Legal & Compliance and Sales. Marketing and Risk were stated as the areas least likely to be impacted.
52% of respondents expect to have to sponsor more skilled workers from outside the EU if the freedom of movement within the EU is removed. 100% of respondents from the Public Sector expect to have to source talent from outside the EU, with 67% of respondents from FMCG / Retail and 52% Technology / Media / Telecoms sectors feeling the same.
This is probably not that surprising given that there is already a shortage of available talent in these sectors, suggesting that companies will have to find even more innovative ways to attract and retain the top talent.
“The research also indicates that in areas where there is a shortage of in-demand skills, organisations will need to consider multiple contingent labour models to meet project and business demands; such as flexible resource, project based, consulting or statement of work.”
Only 10% of respondents stated they already have a contingency plan in place to support their business through Brexit. 43% are currently working on a plan but stated it is very much business as usual for now, whilst stepping up planning for future proofing and negotiating the EU exit.
One thing is certain - the next two years are going to be interesting!
Established in 1987, McGregor Boyall is a global recruitment consultancy with offices throughout the UK (London, Manchester, Edinburgh, and Reading) as well as globally in Dubai and Singapore.
Since our inception we have built an unrivalled reputation for helping organisations recruit the very best talent to ensure that they realise their business and operational objectives.
We provide permanent and contract / interim professionals, focusing on the functions within our clients that support their revenue generating businesses; such as Technology, Change & Transformation, Digital, Procurement, HR & Talent Management, Marketing & Communications, Risk and Compliance.
Contact
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Sarah Greensmith
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Steven Tierney
Email: [email protected]: +44 (0)131 306 0046 Visit: Exchange Place 2, 5 Semple Street, Edinburgh, EH3 8BL
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