MOBILITY
Unfortunately, the difficulties for non-UK nationals entering
the UK (as students or self-initiated expatriates) are expected to increase, resulting in the availability of such talent pools decreasing over time. Thus, firms expect that it will be harder to pursue such a talent-sourcing strategy. Many respondents cite exchange-rate movements after the
Brexit decision that have led to a depreciation of the British currency. External housing demand may increase owing to the lower house prices for foreign buyers, which may mean higher GM housing costs for organisations. Several of the Brexit-related effects are seen as challenges
for organisations that may decrease companies’ external talent availability and increase their costs. Indeed, in response to another question, 27 per cent of MNCs said that the number of inbound assignments would decrease as a result of Brexit, while no one said it might increase. In contrast, 19 per cent of firms think that outbound
assignments from the UK may increase, while no one thinks that they will decrease in the future. Possibly as a result of the more negative perceptions that
non-UK nationals living in the UK have about the hospitality and openness of Britain and the data indicating that many UK citizens would like immigration to be reduced (Migration Observatory, 2016), 27 per cent of respondents believe that the repatriation of assignees already working in the UK will increase. While many MNCs foresee no change in the willingness to
expatriate, only a few think that the willingness of EU nationals in their organisations to go on assignment to the UK will decrease (12 per cent). Some also perceive a higher willingness of UK-based EU nationals to leave their assignments early (16 per cent).
MNCs’ preparedness for Brexit Many of the gloomy predictions made by economists and other commentators before the Brexit vote have not yet materialised. This has led the Bank of England to revise its estimates upwards.
The degree of flexibility of companies to react to political
events and uncertainty, as well as their ability to identify new opportunities, will become apparent over the next few years. Currently, there are many issues connected to Brexit that are unresolved. We wanted to understand the degree of insecurity related to these, and the resource implications. Almost half of the organisations surveyed (48 per cent) feel a fairly
high degree of insecurity in relation to Brexit’s implications, and two out of five companies have a low degree of understanding of them. Of the respondents, 40 per cent believe that they will need
substantial resources to react to Brexit’s challenges, and about a third think that their preparedness to cope successfully with these challenges is low. It is clear that our volatile, uncertain, complex and ambiguous
(VUCA) world has presented MNCs with a substantial Brexit- related challenge that triggers insecurity and resource needs while necessitating strong and reactive leadership when the decisions and their implications for the EU and Britain become clearer.
Using your current insights into likely Brexit challenges, what is the extent of your organisation’s
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