It is predicted that the referendum of Brexit has the significant impact on several industries, such as airlines, general retails, food retails, banking and construction. Banking companies could face a further sell-off when EU leaves UK. HSBC has informed that there is the possibility of medium-term regulatory risks that is associated with Brexit. The research specifies that Brexit hits the UK economy and possibly creates the permanent loss for the Banking Industry. It is also stated that in order to provide the economic predictions, the UK government created the independent agency. It is reported that the profit of HSBC Bank fell almost 82% in the year of 2016. Due to such sudden fall in the profit margin, the non-existent rates increased much significantly (hsbc.co.in 2017).
The incident of Breixit has not only a major impact in devaluation of money. Along with devaluation of money the organization such as HSBC has faced innumerable issues regarding the demand and supply of the labors. The labors include bank accountant, cashier, board of directors, customer service executives and so on who are directly associated for the success of HSBC. The regulations and financial norms increased in keeping pace with such changing nature. The existing labors in customer service department have showed their intense dissatisfaction for providing effective services to the customers. The business experts failed to fulfill the needs and demands of the employees, neither in terms of remuneration nor in terms of necessary facilities and benefits. The entire study would focus to highlight on the impact of Demand and supply of labor on HSBC after Brexit before and after the Brexit.
David (2016) opined that the sudden decision undertaken in the EU referendum sent the global financial markets into a spin. The pounds plunged to the lower level in more than almost 30 years. The major impact signified the degrading economy level of UK. In fact, the Banking Giant HSBC faced the critical situations due to the idea of leaving the EU. HSBC bank earns about three quarters of profits from the Asian market. The sudden shifts in UK interest rates are also predicted to be creating much impact on the future economy of the country. Due to the shortage of 130,000 workers after Brexit the company’s entire service process had to face a major drastic consequence. The existing workers like accountants, cashiers have decided to immigrate in different countries due to better job opportunities. Price (2011) opined that before the incident of Brexit the scenario of the labor market of HSBC was completely different. The business experts were unable to pay sufficient salary package to the existing employees such as bank accountant, cashier, board of directors, customer service executives of HSBC due to the sudden devaluation of money. The workers of HSBC started to feel job insecurity after being deprived of getting salary from HSBC in proper time. Therefore, labor plays an important role in achieving the peak of business success (Manski 2012).
On the other hand, Manasse and Manfredi (2014) stated that the service process of financial industry is not restricted with certain hours. Therefore, the existing customer service executives, sales executives had to pay their services for twenty four hours by following a shifting duty schedule. The business experts before the result of referendum were paid satisfactory remuneration package. As a result, a large number of employees showed their interest for working in the industry of financial transaction. However, the after Brexit the entire scenario had been changed widely. The human resource managers failed to maintain effective employee relation at the workplace. As emphasized by Coyle (2016), the managers even did not provide professional and development training to the employees of HSBC (hsbc.co.in 2017). In this kind of situation, the employees did not get enough space to evaluate their performance skill. At the same time, due to the devaluation of money the business organizations failed to maintain effective financial transaction. The finance giant HSBC even started to raise the rate of interest widely without maintaining proper ethical laws and regulations. As a result, small and medium enterprises failed to use the service process of HSBC. Automatically, the range of target customers has been reduced that reflected on the salary package of the employees. Begg and Mushövel (2016) stated that employees failed to get salary at the proper time. Automatically the needs of the labor after the incident of Brexit have been decreased. The organization like HSBC decided to discharge the existing employees such as bank accountant, cashier, board of directors, customer service executives being unable to pay their salary. At the same time, the labors showed their intense insecurity within the organization for having the fear of jobless. Automatically the supply of labor with the organization became decreased (shrm.org 2017). Organization like HSBC failed to meet the business target that highly affected the entire success growth.
The performance of HSBC degraded in a recognizable manner. In fact, the major banks were recommended to move away from the riskier areas. HSBC even faced the scandals due to the enormous financial crisis. Many of the UK banks were scheduled to announce their annual profit amount before February. It is also pointed out that after such effects; HSBC started planning to move some of the workers to Paris. The major focus was to make the risk free dealings and gain back the profit level. The two overarching concept economic crisis and labor supply are inseparably related to each other. Due to the devaluation of money the existing labor of HSBC are unable to provide their best endeavor towards the services for reaching organizational goal. This particular study by conducting an effective critical analysis regarding the impact of demand and supply of labor on HSBC after Brexit has evaluated on how organization has faced difficulties in earning their profitability. As a result, the business experts failed to fulfill the demands of experienced labors within the business process.
Begg, I. and Mushövel, F., 2016. The economic impact of brexit: jobs, growth and the public finances.
Coyle, D., 2016. Brexit and Globalisation. Brexit Beckons: Thinking ahead by leading economists, p.23.
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hsbc.co.in. (2017). HSBC India: Personal, Corporate Banking, Credit Cards, NRI Services | HSBC India. [online] Available at: https://www.hsbc.co.in [Accessed 2 Apr. 2017].
Manasse, P. and Manfredi, T., 2014. Wages, productivity, and employment in italy: Tales from a distorted labour market. Vox EU. April, 19.
Manski, C.F., 2012. Income tax and labour supply: Let’s acknowledge what we don’t know. Vox. Retrieved September, 27, p.2013.
Price, A. 2011,. Human Resource Management 4th edition: South Western Cengage Learning
shrm.org. 2017. How HR Can Prepare for Brexit's Impact. [online] Available at: https://www.shrm.org/ResourcesAndTools/hr-topics/global-hr/Pages/brexit-fallout.aspx [Accessed 2 Apr. 2017].