The Impact of Brexit on UK Talent Acquisition and Retention

As the UK navigates its post-Brexit landscape, businesses are facing significant challenges in talent acquisition and retention. This article explores the key impacts of Brexit on the UK's workforce and provides strategies for employers to adapt to these changes.

Reduced Talent Pool

One of the most immediate effects of Brexit on UK recruitment has been the reduction in the available talent pool. The end of free movement between the EU and the UK has led to a significant decrease in EU workers across various sectors.

Hospitality Industry Impact

The hospitality sector has been particularly affected, with a 25% drop in EU employees between June 2019 and June 2021. This reduction has created acute staffing shortages, with over 90,000 EU workers leaving the UK's hospitality sector in just 12 months.

Other Affected Sectors

Similar challenges are being faced in other industries:

- Agriculture: Fruit and vegetable growers are struggling to find staff

- Meat Industry: There are currently 14,000 vacancies across the UK

- Transportation: An estimated 25,000 EU lorry drivers returned home during the Brexit transition period

New Immigration Rules

The introduction of a points-based immigration system has significantly altered the recruitment landscape for UK employers.

Skilled Worker Visa Requirements

To hire talent from abroad, employers now need to navigate new regulations:

- Job offers must come from approved sponsor companies

- Candidates must speak English proficiently

- Positions must be at a minimum skill level of RQF 3

- Minimum salary threshold of £25,600 or the average for the position[6]

Increased Hiring Costs and Complexity

Brexit has introduced additional costs and complexities to the hiring process, particularly for international talent.

Visa and Sponsorship Expenses

Employers face increased costs associated with visa applications and sponsorship requirements when hiring non-UK workers.

Administrative Burden

The recruitment process has become more complex, with longer hiring times due to additional administrative procedures.

Strategies for Adapting to Post-Brexit Recruitment

To navigate these challenges, UK employers should consider the following strategies:

1. Focus on Local Talent Development

   - Invest in training and upskilling programmes for existing staff

   - Partner with educational institutions for apprenticeships

2. Enhance Retention Efforts

   - Improve employee satisfaction through flexible working conditions and wellbeing programmes

   - Offer clear career progression paths

3. Diversify Recruitment Strategies

   - Explore new talent pools beyond the EU

   - Utilise online job platforms and global recruitment agencies

4. Strengthen Employer Branding

   - Create an attractive work environment to stand out in a competitive market

5. Leverage Technology

   - Use recruitment software and CRM systems to streamline hiring processes

6. Ensure Compliance

   - Stay updated on immigration laws and regularly review HR policies

7. Support EU Employees

   - Assist current EU staff with settlement applications

   - Provide clear communication channels for addressing concerns

Long-term Outlook

Research suggests that staff shortages may persist for several years due to the combined effects of Brexit and the COVID-19 pandemic. Employers must adapt their talent strategies for the long term, focusing on developing domestic talent while also exploring innovative ways to attract international skilled workers within the new regulatory framework.

In conclusion, while Brexit has undoubtedly presented challenges for UK talent acquisition and retention, it also offers opportunities for businesses to innovate in their recruitment practices. By adopting a proactive and adaptable approach, UK employers can navigate these changes and continue to build strong, diverse workforces in the post-Brexit era.