TALENT


The Brexit: A Key Role for HR


presentation from global professional services provider PwC makes creating a positive mindset around the change the first consideration for HR. This includes a proactive communication strategy, such as a channel for employees to share concerns in support of their company’s values. The second step is to address current


issues, including what will happen to pay and pension funds. Immigration is another consideration. From a business continuity and client communication perspective, the EMA, for example, is publishing details of how it is prioritising during the transition to safeguard its core activities. Finally, PwC encourages companies to


look to the longer term and understand how immigration policy may affect their talent pipelines.


international


Talent after Brexit The latest update from the Office of National Statistics (ONS) suggests that the June 2016 referendum result is impacting migration to the UK, in the short term at least. Nicola White, the ONS’s head of migration


statistics,


comments, “Net migration in the year to March 2017 was +246,000, a decrease of 81,000 compared with the previous year. The net migration change was driven by an increase in emigration, mainly for EU citizens and, in particular, EU8 citizens, and a decrease in immigration across all groups. “These results indicate that the EU


referendum result may be influencing people’s decision to migrate into and out of the UK, particularly EU and EU8 citizens.” HR consultancy Mercer has overlaid


official government and ONS data onto the UK’s demographic trends, analysing the impact of Brexit and demographic change on the UK workforce in the longer term. Using 2030 as a marker, Mercer predicts


that, all things being equal, the UK-born workforce will decline by 400,000 while the net population rises. Owing to ageing demographics, the population will grow between 3 per cent and 6 per cent faster than the workforce. “Since 2013, the UK-born workforce


has been declining as people retire, and we can see how reliant certain industries are on overseas workers filling the gaps,” explained Gary Simmons, partner at Mercer, launching the consultancy’s Workforce Monitor report 2017 March update. “The UK is likely to impose more


stringent migration controls in the future, and this will reduce the number of overseas workers available. Problems in one sector


1.


2. Diversify the talent pool. 3.


4. Move and relocate work. 5.


Build, buy and retain talent. Productivity through innovation. Cease UK operations.


The CIPD/NIESR study shows that around 11 per cent of respondent companies are considering relocating as a result of Brexit. While this is not necessarily a huge number, it could potentially involve significant numbers of jobs. Mercer’s analysis from March 2017


suggests the sectors that are most likely to be considering either moving and relocating work or ceasing UK operations (options four and five in its Lines of Defence model). For the information and communication


sector, this route is a ‘high and urgent’ priority. For manufacturing firms, it is a ‘medium and important’ priority. For financial and insurance activities, routes four and five are ‘lower, but still important’, priorities, affirming the mixed picture from the banking sector. In the context of the impact of Brexit on


the UK’s financial industry, Mercer notes that the sector has already undergone significant change because of digitisation. However, it points out that the focus now is on managing and retaining people in the digital, regulatory and cybersecurity roles the industry needs, with competition for these skills being “intense”.


will impact on a variety of others, so organisations need to understand the make- up of their workforce, the risks, and plan how to address this challenge.” Data from the CIPD, the professional


body for HR and people development, in conjunction with the National Institute of Economic and Social Research (NIESR), published in June, shows that hospitality and the construction, agriculture, retail, social work, construction and manufacturing sectors are set to be impacted most by Brexit and demographic trends. Brexit is deepening long-standing


changes and adding to the debate about how companies can best identify, attract, develop, retain and deploy people, and confirms HR and mobility’s important strategic role in responding to the challenges.


Mobility, immigration and skills gaps Mercer’s Five Lines of Defence model offers a framework for addressing these changes. It proposes that companies develop strategies in the following five key areas according to the specific talent shortages they face:


Mercer’s August update notes that the


ICT sector and the financial and insurance sectors have a younger workforce and are reliant on foreign workers, which makes them susceptible to immigration policy changes. This underscores the role of sound relocation management and HR practices around change and talent management, as well as organisation design in the current environment, and the EMA’s and PRA’s concerns.


Immigration and the talent pool The build, buy and retain talent and diversification decision (numbers 1 and 2 in Mercer’s model), is a ‘high and urgent priority’ in health and social work, accommodation and food services, and information and communication. At a company level, employers can


revisit their skills planning and review their recruitment strategies to be assured of accessing the people with the skills they need. Reskilling existing workers and building relationships with industry bodies, apprenticeship providers, and the education sector also helps to improve the link between skills demand and supply. The


CIPD and other sector


representatives continue to make recommendations to government for meeting skills needs through migration. For the CIPD, these include extending the existing Youth Mobility Scheme for non- UK nationals from outside the European Union to the EU.


Targeted talent planning The need for more agile and responsive HR and mobility practices to fill skills and talent gaps is evident. As the EMA and the PRA’s comments


show, relocating is about far more than simply moving people and businesses. It is about minimising risks, preserving skills, experience and resources, and ensuring that corporate goals are achieved – wherever they are delivered.


For the latest on talent planning and Brexit, visit relocateglobal.com


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