What directors need to know

It’s understandable when something is in the headlines every single day, with every nuance picked apart, studied and speculated upon ad nauseum. We feel the same way about The Great British Bake Off. 

Only one of these could have material ramifications for your business – unless you’re in the baking industry. 

A recent survey conducted by the Chartered Institute of Personnel and Development (CIPD) found that most respondents were unaware of proposed changes to immigration rules that could make recruiting lower-skilled workers after Brexit more difficult. 

58% of the 2,182 respondents had no idea that there is a proposed new skills-based migration system set to be implemented in 2021 after the UK has left the EU. A further 35% said they knew “a little” about the proposed system while only 7% said they had a thorough understanding. 

56% said they didn’t have enough information to start making post-Brexit recruitment decisions with only 27% happy to start making decisions now based on the existing information. 

Gerwyn Davies of the CIPD said that many employers were daunted and alarmed at the range of planned new restrictions and additional costs they’d incur when hiring EU nationals. 

“Even if they can access the talent they need, there are concerns that they might not be able to afford it. In response, the planned introduction of migration restrictions must be phased in to offset the risk of labour supply shock and avoid harming UK competitiveness.”

He added that it was inevitable that the rate of EU citizens coming into the UK would fall after the system was in place pending any transition period contained in any agreed Brexit deal. 

CIPD have launched a white paper outlining several proposals to mitigate the worst effects of change that it will submit to government as part of a 12-month consultation on the scheme. 

Other industry experts predict short and medium term difficulties as companies are slow to react to the ramifications. 

Prevention is better than cure

Tom Hadley, director of policy and campaigns at the Recruitment & Employment Confederation (REC) said: “The feedback from recruiters is that we’re heading towards crisis point, particularly in health and social care, hospitality and food and drink.”

Brexit is one area with the potential to blindside any company, no matter how solid and well run, with a new law or legal change that undercuts any part of their business model. 

Prevention is always better than cure so if you’re worried that your business could be vulnerable to any of the known or unknown unknown’s that Brexit will bring, speak to us. 

A free initial consultation with one of our expert team of advisors will help you see what areas of your business could be secured or improved right now to leave it less vulnerable to a literal overnight change. 

Take our advice and make sure your business is as resilient as it can be in the face of any future storms – no matter where they blow in from.