The Impact of Brexit on the HR Sector

Brexit has already had a major impact on UK businesses. However, one sector which is especially feeling the negative effects is HR. Not only are HR teams struggling with recruitment, but they’re also expected to help businesses navigate through the implications of leaving the EU.

Here, we’ll look at the impact Brexit is having on the HR sector and the challenges faced.

Labour and skills shortages

There’s a particular worry that Brexit will lead to a significant labour and skills shortage. This in turn would make it difficult for HR to source the talent needed for the business. In a recent report by the CIPD, one in ten businesses say they’ve reduced the number of EU nationals they’ve hired since because of Brexit. 

While many sectors aren’t reliant upon European workers, low-skilled professions do struggle to attract UK employees. It’s these sectors where HR are going to struggle the most to attract the talent required.  

Employee tensions

Perhaps one of the biggest challenges for HR teams is calming employee tensions. HR are responsible for helping businesses navigate through Brexit – not an easy task when nobody appears to know what’s going on or what the result is going to be! 

Businesses which already hire EU employees are therefore finding it difficult to reassure them. The uncertainty surrounding what will happen is causing a lot of tension, which in turn is impacting business operations. Those with EU employees or those looking to hire EU employees, would do well to seek professional legal advice. Immigration experts Withers can help reassure EU immigrants as well as help them navigate through the new regulations. 

Operating within the EU

It’s not just EU immigrants that need to be concerned with Brexit. UK companies which operate within the EU, also need to understand how it will affect them. UK nationals working within EU countries will also be subject to the immigration requirements of that particular country. They may need permits or visas, a change in their driving license and health insurance. 

Overall, Brexit is having a significant impact on the HR sector. With very little understanding over the full implications of Brexit, HR professionals are stuck trying to reassure employees, while coming up with an action plan for every eventuality. The good news is, there is still a full year to go before whatever changes are introduced will need to be fully implemented.