The United Kingdom European Union membership referendum is also known as the European Union referendum or Brexit referendum which was placed on 23rd June, 2016. The European referendum supports for the country either remaining a people from, or leaving, the Brexit referendum under the planning of the European Union Referendum Act 2015 (Goodwin and Heath, 2016). This report describes and identifies the possible effects of referendum results on the human resource area of the industry. The report considered the recruitment and retention part in the human resource in order to analyze the impacts of referendum result on 23re June 2016.
Impacts of EU referendum result on Human resource
Impacts of EU referendum results on recruitment and retention
According to Baker et al. (2016), Brexit is a contraction for British exit linked to the referendum result on 23rd June 2016, with British residents voting to leave the European Union. Organizations committed to hiring experts to work for the several sectors of the organization are bound to be affected by the referendum outcomes. Recruitment in the organization generally concentrates on getting experts with the appropriate skills and capabilities to perform for numerous customers. One of the important issues to concentrate on with regards to the referendum results is the accessibility of skilled professionals to work in the United Kingdom industries. Further, Brexit is a chance for recruiters to hire and retain professionals to identify with Britain issues and stimulate solutions which is based on the nation knowledge. Therefore, the exit of the UK from the European Union will likely lead to the relocation of this skilled workforce back to their home countries resulting in overwhelming skills shortage. According to Torrington et al. (2014), recruitment will suffer due to a less skilled individual in order to recruit for the industries. However, the circumstance will make an opportunity for the country to contribute heavily in training and education of the local individual so as to plug the gap occasioned by migration of skilled employees return to their home countries. The country’s heavy dependence on migrant employees will stop and it will be capable to tap from the native professionals. In spite of the opportunities to develop the domestic ability, recruitment and retention will suffer because it will not be possible to find professionals from the different cultural backgrounds who can increase the interest in the organization of the United Kingdom (Setala, 2011). Successful recruitment is focused on recruiting an individual with the right skills and capabilities and also from different cultural backgrounds (Protsyk and Osoian, 2010). The value of professional’s diversity in the industry cannot be put down because the industry invites customers from various backgrounds and numerous social foundations. The outcomes of the referendum are bound to cause a skills shortage which will directly impact recruitment. Leaving the European Union will make it obligatory for recruitment organizations to only recruit European Union employees who have appropriately duly-obtained visas. This will make recruitment a time-consuming activity since acquiring visas will be long procedure. The exclusive recruitment of British graduates in view of restrictive visa necessities for European employees has possible issues for the industry. According to Portes (2016), the major problem was the unemployment rates for the immigrant employees will snowball probably due to lack of graduate-level capabilities that are needed in the industry. In addition, the situation will make a conflict where degree qualifications are required over profession of imperative skills. The prerequisite that European Union acquire visas before they can be recruited in the United Kingdom industry will cause recruiters to re-think their hiring techniques. The major inference for this purpose states that the United Kingdom will pass out a big opportunity on the cultural benefits of having a different workforce. The other implication will experience difficulties in the short to medium run before the important modification in the training and education which is achieved in order to cover for the exit of settler employees. The main merits and demerits of the impact of Brexit on human resource operations are as follows (Schoof et al., 2015):
- A variety of duty laws which apply to the United Kingdom by ideals of its participation of the European Union may cease to be binding on it because of Brexit, and accordingly, Brexit throw up several opportunities.
- The positive effect will involve diminishing culturally diverse issues in the administration of workforce due to a couple of worldwide representatives as they are locked out of the economy (Renwick, 2014).
- The European Union is a single market where no taxes are imposed on exports and imports among the member states.
- Britain also has advantages from trade deals between the European Union and the other global forces and would lose some of that negotiating power, but would be free to build its own trade agreements.
- Under the European Union law, Britain cannot keep anybody from another member state from coming to live in the United Kingdom, while Britons advantage from a equivalent right to live in and work anywhere else in the alliance. The outcome this result has been a big increase in immigration into Britain, especially from eastern and southern Europe.
- Labor deficiency could also hold back the economy, decreasing its potential for development. There are also skills shortages in the United Kingdom that would hurt few divisions.
- The main drawback of the referendum result as it weakens representative democracy by diminishing the role and significance of elected representatives.
- Voters do not generally have knowledge needed to create an informed decision about the problems at stake.
- Official has the ability to decide to identify when referendums are held, they can be used as a political device to suit the requirements of the administering party as opposed to the interest of democracy.
From this report, it has been concluded that the exit of United Kingdom has extensive favorable and unfavorable effects on the recruitment of professional foe the United Kingdom industry. The referendum outcomes will cause a skill deficiency as immigrant employees in the United Kingdom which move to their home countries. The report concluded that the recruiter will have a chance to hire and prepare experts from local population who identify with challenges and thus make solutions customized to Britain issues. Moreover, the loss of talented and socially different European Union workforce will make the business to miss out a major opportunity for the social focal points of the skilled workforce.
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Protsyk, O. and Osoian, I., 2010. Ethnic or multi-ethnic parties?: Party competition and legislative recruitment in Moldova.
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Schoof, U., Petersen, T. and Aichele, R., 2015. Brexit–potential economic consequences if the UK exits the EU. Bertelsmann-Stiftung, Policy Brief, 5, pp.8-9.
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