Over the coming weeks, months and years we will inevitably see many changes to our businesses after the momentous decision to leave the EU. Whatever your personal feelings are, how much contingency planning have you made for the impact that leaving the EU will have on your business? HR experts believe that the vast majority of businesses in the UK did not take any contingency planning for the eventuality of a leave vote, so do not feel alone if you hadn’t either. Here are some steps for you to consider as a business owner.
Communication
In the initial days after the vote, you may well have sent out a statement reassuring staff that it is business as usual for the foreseeable future. Remember to keep those lines of communication open and to update them about any changes. Your staff need to feel that they are being kept informed and not in the dark. There will continue to be an enormous amount of information coming from the government, trade bodies, experts and the media. Your staff may worry about what they are reading in their newspaper, on social media or seeing on television, therefore it's really important that you keep communicating with them.
Employment law
As we move forward with leaving the EU things will become clearer, and HR professionals will need to keep a close eye on which employment laws are affected. There already is and there will continue to be much speculation on what the impact of leaving the EU will be. In theory the government could repeal or revise a significant proportion of the UK’s employment laws that are required as part of the UK’s membership to the EU. Some of the laws that fall into this area are anti-discrimination rights, Working Time Regulations (WTR), the Agency Workers Directive (AWD) and Transfer of Undertakings (Protection of Employment) (TUPE). For example, UK governments have fought hard against the restriction of the 48-hour average weekly working limit. Should repeals or amendments be contentious, then it would meet opposition, and experts believe that widely valued and accepted laws are unlikely to be repealed by the government.
Pensions
Experts believe there will be continued market volatility which will have an impact on pensions. In the days immediately following the referendum vote, the then Pensions Minister, Ros Altmann described a “delicate balancing act” to maintain the strength of pension schemes. There has been further stimulus to the British economy and the Governor of the Bank of England made cuts to interest rates, which has had an impact on company pension schemes.
Job market
Many employers are being cautious about hiring new staff at this point in time. In the lead up to the EU referendum many organisations had chosen to hire fewer full-time roles, turning to temporary workers instead. This is likely to remain the case for the foreseeable future, or until employers know what the exact form of the exit will take. Employers have also shelved projects and new initiatives during this uncertain phase of the EU exit. Before deciding to shelve these initiatives, it’s wise to think about the bigger picture. Your people are your most important asset, and if you have growth on your agenda, then you’re going to have to make sure that you’ve got the right talent to lead the way. Recruitment should be an investment, rather than a cost, so any big decisions should take into account your wider goals and objectives.
Migration
It is still unclear what the decision means for EU nationals working in the UK. Some theorise that it could see the introduction of costly policies for organisations that employ EU workers. We have just seen the media reporting that the points-based system, already in place for non-EU workers, has been rejected by Theresa May. Her spokesperson went on to advise that: “The precise way in which the government will control the movement of EU nationals to Britain after Brexit is yet to be determined.” If you employ EU nationals, then you will need to keep up to date with any changes and ensure that once again you are keeping the lines of communication open.
If you have any concerns about the impact of leaving the EU on HR matters for your business, then please call for a no obligation chat, or go to our HR Assessment page.