Starting January 31st, 2020, the United Kingdom has formally withdrawn its membership from the European Union. How will Brexit and HR interfere in the upcoming months and years?
Of course, following such a decision a transitional period will be required that will span until the end of 2020, during which workforce and immigration arrangements should be processed and resolved.
In these times of uncertainty businesses have no other choice but to take appropriate steps to plan for the future and best support their employees in this context.
In an effort to address this trending topic we thought we should focus on the effects and implications of Brexit on HR and on employees, and how HR leaders can best support the workforce through these changes.
From identifying those employees affected by immigration and status changes to making preparations as transparent as possible, we foresee quite a few priorities for HR leaders.
1. Create a transparent and positive business culture
This could include developing a proactive strategy which reaffirms company values related to openness and inclusiveness and provides a direct line of communication for employees to share concerns.
But it could also mean finding innovative ways to provide constant reassurance to employees that their jobs are safe. Even more, helping them deal with other concerns on a personal level related to Brexit and HR that might be impacting their work and productivity levels is also recommended.
A good place to start here is by communicating freely with your employees, as in the absence of dialogue, rumours can take over and interfere with important aspects leading to a lowered morale and disengagement.
Instead, by letting your employees know during group discussions or 1-1 chats that the organization is committed 100% to keep them and their jobs safe, as well as by showing legal support — anything from consultancy down to paperwork will create a strong sense of union and family for them that can also act in your favour.
2. Address the elephant in the room – financials
The transition period is hard for business owners and HR leaders, but also for employees as they don’t know what to expect financially.
So try to assess how this change will affect bonuses, incentives, targets, and other benefits for your employees.
Making sure your employees are satisfied and motivated is key to ensure a smooth transition period for both your organization through this transition period.
3. Try to have a longer-term perspective on Brexit and HR
With the current war on talent already being a major issue, Brexit will only amplify the fight for quality people.
Considering there will be a significant impact on the candidates market, new strategies might be required for attracting and retaining quality employees within your organization.
Since the UK may no longer be an attractive destination for people from the EU, it is certainly possible that the quality of hires will take a serious hit.
With some segments of the UK’s economy strictly dependent on the input of EU citizens, businesses might have no other choice but to prepare for the worst from a talent perspective.
Another good idea for HR leaders is to stay up to date about any changes and developments in the migration rules imposed after Brexit.
A possible scenario is that current EU workers in the UK will be covered by worldwide UK immigration rules and the UK’s existing Points Based System – which is a system meant for attracting skilled migrants with good English skills.
Visas and work permits may also come into play following increased administration requirements, in which case hiring people outside the UK would become more difficult.
Without a doubt, the UK’s exit from the EU will also have an impact on a global level for multinational organizations.
Without the free movement of labour from the EU to the UK, big corporations may feel that the talent pool available in the UK does not fuel their needs anymore and therefore decide to go elsewhere.
In other words, HR directors may need to consider a workforce audit within the UK to assess whether or not a post-Brexit UK labour market would be capable of satisfying their organization’s growing needs.
4. Assess the impact on employee legislation
Keeping up with legal matters can be a source of continuous stress when it comes to the heavy aspects of managing an organization’s employees. And unfortunately, it’s possible that this will be one of the immediate effects of Brexit.
The EU introduced rigorous protection regulations of trade union rights and basic humane employment practices, which of course will continue to be enforced by the UK’s separate membership of the European Convention of Human Rights.
Similarly, legislation that did not have EU input will remain in place, covering legislation such as pensions auto-enrolment and shared parental leave.
While a dramatic change is unlikely in areas where laws have already been adopted, acts and regulations that are receiving criticism might become more relaxed or removed eventually.
In light of all this, HR departments should perhaps stay in the know and develop suitable scenarios for all these possible directions.
As most HR departments are already busy with mediating the communication between top management and employees and the unexpected effects of Brexit are unfolding, most HR leaders will surely feel overwhelmed.
So perhaps HR leaders should focus more on the human element this year, removing stress as much as possible from the workplace, and focus on creating a culture of integration, collaboration and productivity.