Brexit: What Talent Managers Must Know Now

Here are answers to some frequently asked questions

On January 31, 2020, the U.K. officially cut ties with the European Union, but didn’t clarify how U.K. citizens, immigrants and visitors are to move about the new international barrier. The world was given a hint on February 19, when the U.K. government issued a statement on its forthcoming revised immigration policy. Within what some are calling the ‘ambiguous’ brief, one change is clear: the end of freedom of movement.
 

As the statement says, “employers will need to adjust,” how they send foreign workers to the U.K., which has understandably created anxiety among human resources professionals who’ve been given the task. For instance, starting January 1, 2021, worldwide travel to the U.K. will be governed by a new points system that will “transform the way in which all migrants come to the U.K. to work, study, visit or join their family.” The system will apply to EU and non-EU migrants equally and is designed to favor entry for skilled workers, students, leaders and innovators while reducing reliance on low-skilled labor from Europe.

Here are answers to some frequently asked questions that will help global talent managers navigate these new waters with confidence. 

What Will Change with the New Immigration Bill?

The new immigration bill has broad implications for employers who rely on migrant labor from the EU. Because of the costs and fees associated with work visas, employers will be less likely to hire people outside the U.K. unless they must due to skills shortages. By design, the new immigration bill will make it difficult and expensive for companies to bring low-skilled labor from Europe into the U.K. 

Companies that find it challenging to locate the skills they need will have to be creative about how they fill jobs, particularly for positions that don’t require a degree or special skills. Some employers are already targeting harder to reach groups, for instance, older workers, women returners and ex-service people. Global companies may also shift some operations abroad if that makes sense from a financial and talent management standpoint; media reports suggest it’s already happening in some sectors, like finance.

Some industries will almost certainly experience labor shortages when the new rules go into effect in January 2021. Industries will be stress-tested, and the U.K. government may make adjustments to the rules. The economy will likely be in a different place as well several months down the road. The policy statement says the government will monitor labor market data to detect pressure in key sectors.   

What Should HR Organizations Do?

Understanding the implications of upcoming changes is the key to navigating them successfully. The U.K. government’s policy statement contains valuable details on the design and scope of the points system, salary and skills thresholds, the visa process, border crossing requirements and much more. It’s a great place to start. 

HR and talent managers will also need to work closely with senior leaders to formulate a strategy going forward. The government will provide guidance in the summer, and companies can formulate a more detailed strategy then. But in the interim, it’s advisable to determine where skills shortfalls are likely to occur and how much time and money the company will invest in fees and benefits for migrant labor.

As companies recruit employees and make hiring decisions, they should exercise caution, keeping the new rules in mind while avoiding broadly discriminating against candidates based on their country of origin. The best approach is to consider candidates on the basis of their skillset only, and then factor in the prospective employee’s immigration status when making hiring decisions. 

HR professionals and talent management specialists who are working with foreign nationals in the U.K. should begin the process of applying for work visas now, if they haven’t already. Collecting documents, gathering approvals, etc., is a time-consuming process. It’s also a good idea to update HR handbooks and reach out to affected employees to offer residency assistance and let them know what to expect. 

How Can HR Professionals and Talent Managers Stay Informed and Get Prepared?

Staying up-to-date in a fluid situation is important, and the U.K. government’s “what you need to know” page features links to basic information, updates and an opt-in link to receive email alerts about new information when it becomes available. Talent mobility trade associations and vendors are a valuable source of data on skills shortages and signing up for immigration law firm alerts is also a great idea.

The good news is that thanks to the length of time it took from the original Brexit vote to the current transition period, some - but not all - global companies have had time to determine their employees’ immigration status and identify where staff are working. That information is critical in implementing a talent mobility strategy, which will be more important than ever when the new U.K. immigration law takes effect. 

That said, when the government releases guidance this summer, many companies will experience a time crunch as they race to ensure that needed talent is in place. To avoid being overwhelmed, it may make sense to add staff to handle the influx of planning and documentation. The best strategy right now is to stay informed and prepare in advance, and there’s no time like the present to get started. 

	Jurga McCluskey is a partner and head of immigration at Deloitte, and chair of the immigration committee at Worldwide ERC. Connect Jurga McClusky
	Ian Robinson is a partner at Fragomen LLP, a member of Worldwide ERC. Connect Ian Robinson Visit www.worldwideerc.org