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Reactions to Brexit from an HR perspective

27 Jun 2016 - Blog, News

Reactions to Brexit from an HR perspective


IoD survey 24-26 June

The Institute of Directors (IoD) has found that a quarter of it’s 1000 members planned to freeze recruitment, with 5% planning to cut jobs. However, almost a third have said would keep hiring at the same pace.


The CIPD : Government needs to consult with business, continue to tackle productivity

Peter Cheese, the CIPD’s CEO, believes it’s important that the Government and UK businesses take time to properly assess the long-term impacts of any decisions that they take going forward.

“The CIPD will play its part in necessary consultations between government, organisations and employees across all sectors and representative bodies. “

“For most businesses, the immediate impact of this historic decision will be limited as major changes won’t be able to occur for a while. “

“However, employment law and immigration… will potentially be subject to change going forwards..”

“Alongside the re-negotiation of a new relationship with the EU …it is vital the Government continues to …work on the challenges that continue to threaten the UK’s prosperity in future years, namely the productivity, skills and employment agendas.”

Read more about the productivity puzzle here.


The impact on hiring for SMEs

James Peck, UK Country Manager at Jobandtalent, explains the impact on SMEs from a hiring perspective.

“We can expect a mixture of fear and confusion among many SMEs following the vote for Brexit – particularly with regard to their employees,”

“Almost every decision small business owners have to make relating to their staff is connected to legislation that was introduced by the EU. Some 40% of UK SMEs are concerned about how their company’s ability to hire will be affected, and as many SMEs operate without dedicated HR staff, and could struggle to keep up with changing employee regulation …they should consider seeking advice on employment law and hiring best practice.”



Communicate in the face of uncertainty

Mark Quinn, a Partner in Mercer’s Talent business, adds: “In the short-term, companies should be analysing exposure they have to the UK and Europe in respect of their workforce’s organisational profiles and their reward plans. While we don’t know yet what restrictions will be imposed on, say, the free movement of people, it is evident that political, economic, legislative and market uncertainty is unlikely to clear any time soon. Strong employee communications will be critical for companies over the coming months.”


Further links:

How to help your employees cope with Brexit

Brexit: How UK Employment Law may Change




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