Investigating Hard Brexit's Impact on HRM and Expat Employees

This dissertation investigates the impact of hard Brexit on Human Resource Management (HRM) and expat employees within the UK retail sector. The research begins with an introduction to Brexit, its implications, and the research objectives, questions, and rationale. A comprehensive literature review examines the existing body of knowledge on Brexit's impact on HRM, covering topics such as the impact on recruitment, workforce planning, and employment law. The methodology chapter outlines the research approach, data collection methods, and analysis techniques. The data analysis section presents the findings, followed by a discussion of the results. The final chapter concludes with a summary of the key findings and provides recommendations for retail firms to address the challenges posed by hard Brexit, focusing on strategies for workforce planning, retention, and adapting to changes in employment regulations.

Dissertation

Acknowledgement
On the very outset of this dissertation, I would like to extend my sincere and heartfelt
obligation towards all the persons who helped me in this endeavour. Without their guidance,
help, cooperation and encouragement I would not have headway in the project.
I am extremely thankful and pay my gratitude to my faculty for their guidance and support
for the completion of the research.
I am acknowledging with a deep sense of reverence, my gratitude towards my parents and
member of family who has always supported me morally and economically.
At last, not the least gratitude goes to all of my friends, who directly and indirectly supported
me to complete the project,
Thank you

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION..............................................................................................6
Background of the study........................................................................................................6
Research aim and objectives..................................................................................................6
Research questions.................................................................................................................6
Rationale of the study.............................................................................................................6
Significance............................................................................................................................6
Structure of dissertation.........................................................................................................7
CHAPTER 2: LITERATURE REVIEW...................................................................................8
Overview of Brexit.................................................................................................................8
Impact of hard Brexit on HRM..............................................................................................9
CHAPTER 3: RESEARCH METHODOLOGY.....................................................................14
Research type.......................................................................................................................14
Research approach...............................................................................................................14
Research philosophy............................................................................................................14
Data collection.....................................................................................................................15
Sampling..............................................................................................................................15
Data analysis........................................................................................................................15
Reliability and validity.........................................................................................................16
Ethical consideration............................................................................................................16
CHAPTER 4: DATA ANALYSIS...........................................................................................17
CHAPTER 5: FINDINGS & DISCUSSIONS.........................................................................28

REFERENCES.........................................................................................................................31
APPENDIX..............................................................................................................................34

Topic: To investigate the impact of hard brexit on human resource management (HRM)
and expat employees in UK within retail sector
CHAPTER 1: INTRODUCTION
Background of the study
In the current times, Brexit is recognized as the significant aspect or issue within UK.
Moreover, after leaving Eurpean Union (EU), there will be change in several rules and
regulations pertaining to UK. In UK, there are several employees who belong from European
Union. In this regard, HR department of UK retail firm will face issue pertaining to manage
human resources. Moreover, following brexit strategic HR issues will occur in relation to
freedom of movement and retention of EU staff. In the current times, UK economy is
experiencing the condition of full employment. Highly qualified and experienced workers are
doing job in UK which shows migrants as main contributors in an economy. In addition to
this, rule of workers migration will also be changed after brexit. All these aspects create
challenges in front of HR department to a great extent. The present dissertation will provide
deeper insight about brexit and manner in which HR practices of UK retail firms get affected
following this situation. It will also shed light on the tools that researcher employs for
discovering suitable information. This dissertation highlights the level of influence and
strategies that HR managers should undertake for drafting competent framework for
workforce planning and retention.
Research aim and objectives
Aim
The main motive behind conducting present investigation is to assess the manner in
which hard brexit impacts HRM and expat employees working in UK retail sector.
Objectives: Referring above aim following objectives has been presented such as:
 To develop understanding about hard brexit and trend of expat employees in UK.
 To ascertain the influence of Hard brexit on HRM of UK’s retail firms.
 To identify challenges that expat employees will face due to brexit.
 To recommend strategies to retail firms in relation to dealing with hard brexit
pertaining to HR practices.

Research questions
Q.1 What is the concept of hard brexit?
Q.2 What is the current trend of expat employees in UK?
Q.3 What is the impact of hard brexit on HRM in the context of UK’s retail firms?
Q.4 Which challenges expat employees in UK are facing due to brexit?
Rationale of the study
The main reason behind conducting current investigation is to ascertain the level to
which HR practices will be affected due to brexit. It is considered as an issue because after
brexit UK would not become able to attract talented people from EU zone. In the retail sector,
employee turnover is already high which in turn directly impacts business operations and
functions. In this regard, it becomes essential for the firms, operating in retail sector, to
develop highly skilled and talented workforce. In addition to this, following brexit, there will
be significant reduction in the EU citizen who came UK for working or employment purpose.
This in turn recognized as an issue now because UK has formally ceased its membership of
EU. Thus, now HR authorities of UK retail firms need to lay emphasis on developing
strategies for workforce planning and dealing with the condition of brexit effectually.
Significance
Outcome of the present investigation is highly significant which provides UK retail
firms with a framework that helps in dealing with issues may occur as a result of brexit.
Further, it will also give high level of assistance to other scholars who wish to conduct study
on similar topic. Now, brexit is cotemporary issue so results of this study will help
researchers in developing hypothesis for further studies or investigation. In this way, such
study will offer benefit to several stakeholders.
Structure of dissertation
Chapter 1: Introduction
First chapter of dissertation includes brief overview of hard brexit and its impact on
HRM as well as expat employees in UK. It contains aim and objectives upon which whole
study is based.
Chapter 2: Literature review

In chapter 2, books, journals and scholarly articles will be evaluated with the motive
to attain objectives from theoretical perspective. This chapter of dissertation is highly
significant which in turn helps in interpreting primary data set effectually.
Chapter 3: Research methodology
This chapter of dissertation presents tools and techniques that will be employed for
addressing research question or issue. It entails research type, approach, philosophy, data
collection and analysis method that help in fulfilling research aim and objectives
Chapter 4: Data analysis & findings
It is the main part of dissertation which presents findings of research through the
means of thematic analysis. For ensuring better understanding about results graphs have been
added.
Chapter 5: Conclusion & recommendations
This chapter concludes findings derived from data analysis section and strategies that
HR of retail firms can adopt for dealing with the situation of hard brexit.

CHAPTER 2: LITERATURE REVIEW
Literature review is the type of a review of any article. Thus, it is the scholarly article
which involves the current knowledge that further includes substantive findings as well as
some theoretical and methodological contribution for a particular topic. In the same way,
current section review some articles in order to determine the impact of Brexit upon HRM as
well as expat employees so that it will help to gain deep understanding of this topic. This
section describe meaning of Brexit and then examine how Brexit affect HRM and its impact
upon business operations. Further, it also describe the how Brexit affect expat employees.
Overview of Brexit
According to Benjamens and et.al., (2020) Brexit refers to that decision when UK
leave European Unions. Thus, it involves the process of negotiating the new trade deals,
citizen registration rules and boarder etc. So the process actually started on June 23, 2016
when referendum is passed by 51.9% to 48.1%. Moreover, Thomson (2020) support that if
UK does a hard Brexit then country have to attain more freedom in order to create their own
trade deals with other countries. So, the hard Brexit is that situation, where UK have to give
up access to a single market and custom unions. For instance, under EU law, a candidate of
another EU nation may decide to move or live in UK and they did not have any restrictions.
But this in turn, leads to increase immigration into Britain and also created difficulties to
fulfill the need of house and people. Hence, through hard Brexit, UK will possess full control
over their borders.
Latorre, Olekseyuk and Yonezawa (2020) argued that being a part of EU, UK benefits
from trade deals between EU as well as other world powers. Thus, through this deal, EU
applies stronger bargaining power because it has a largest economy. So, leaving UK would
lose negotiating power as well as free trade from other European countries. Not even this, UK
also try to recreate trade deals with other countries but unfortunately it get low favorable
results. Breinlich and et.al., (2020) also supported that the uncertainty of Brexit not cause
economy but also business operations of UK. Such that due to hard Brexit, goods and
services will be charged heavy tariff and as a result, it increases the cost of raw material into
Britain . Thus, most of the company also got affected with the Brexit and this in turn affect
the decision taken by HRM in top companies.

Impact of hard Brexit on HRM
In the opinion of Zyla (2020) Brexit creates a direct impact upon the HR and their
planning such that most of the HR also find it difficult to attract right talent and retain the
existing one. Not only this, the value of pound also creates a direct impact upon the company
such that they have to paid high to the professionals from other countries. As the cost of
living is also high due to hard Brexit and this is consider one of the most significant concern
for the workers too. In that situation, UK also suffer from the skill shortage and it will also
takes lots of years to fill. If Brexit agreement also involves expatriation of EU workers, then
this will also difficult for business because it may restrict to free movement of workforce.
Hassan and et.al., (2020) present their views that Hard Brexit creates direct impact
upon recruitment such that it increase the number of EU citizen which come to UK to work
and as a result, it did not rise with overall employment market. Thus, report from Labour
Market Outlook also states that the share of organization reporting that it is quite hard to fill
the vacancies in the firm. Also, these vacancies are raise from 56% to 61% from 2017 to
2019. As a result, many companies also increase the salaries and further as per the LMO
report 2019, it is estimated that there is a 595 increment in private sector employee’s salaries.
On the other hand, McGrattan and Waddle (2020) also argued that Brexit also affect the
workforce planning in negative manner such that country faces issue of scarcity of available
skills and labor. Thus, due to sudden vacancies, HR of the top companies have to fill the seat
at urgent basis and as a result, they did not focus on learning and development.
Thus, from the 2018 statistics data, it is evaluated that 72% of the employers have
dedicated training budget, growth but due to Brexit it is lower down. On the other hand, more
than half of the people state that leaving EU had do not create any impact upon training and
skill development, but some of them state that it affect on HRM. Therefore, it is clearly
reflected that some of the employers are get back and also invest upon mitigate actual risk of
skills shortage within a country (Brexit and its implication, 2020). This is further supported
by Kim (2020) that organization who employ EU nationals are actually more as compared to
employers who do not recruit EU employees. They also invested upon new employees as
compared to existing or older employees. Therefore, it is clearly indicate that companies who
employ EU migrants were actually making wider efforts in order to find out the labor who
build workforce skills easily.

On the other hand, Reiche, Lee and Allen (2019) stated that Brexit also create
negative impact upon the employment law such that HR professionals takes more time in
order to make sure that company comply with all the defined laws and regulation. While,
many of the companies remain same, though there are many laws which are fall under this
category such that Anti- discrimination law, family time and working time. Thus, after Brexit
government suddenly changes many employment laws but some of them remain same such
that fair working hours and equal treat of employees. But in this situation, HR of the
company takes enough time in order to understand new law and implement the same into the
working area. On contrary, Csillag (2019) argued that putting entire time into laws, will
affect HR in opposite way such that they cannot provide full attention on other practices i.e.
employee engagement and as a result, it leads to leave job and increases employee turnover
rates too. So, putting extra effort in this situation, leads to increase cost and which in turn to
decline the financial performance of a company too.
Mendy (2018) provide their opinion in their study that through migration, the entry in
UK has yet to be disclosed but it could also potentially work through visa basis. Thus, using
visa system, most of the employees actually cause a great deal of work for employers and
also forced to complete application submission and time their seasonal workers. Therefore,
for HR of top companies, it is consider one of the most time consuming method. Not only
this, communicating with employee and the government also taken up enough time and as a
result, it increases wake of new data protection laws which should also be comply by
company. Therefore, HR system of the company also got affected because if UK workers are
traveling in EU for business purpose then they have to carry visa. While Chiang, Lemański
and Birtch (2017) stated that in the case of soft Brexit, these type of impact is actually
mitigated, but migration is consider the main sticking point after Brexit. That is why, any
changes to border is one of the big concern for the UK territories as a result, HR of the top
companies face issue but they have to make sure that they receive fair treatment when
working in any company.
Impact of Brexit upon Expat employees in UK
According to Hall (2020) around one million of the UK nationals are working across
EU and Brexit affect them all. Most of them are relocated on the long term or on permanent
basis, while many of them are based temporary. Thus, Brexit not only affect the movement of

trade but it do affect the expat employees as well. Further, the head of business immigration
at Bird & Bird also tell in HR magazine that the situation for UK nationals working in EU is
quite volatile and also, there has been a lack of reciprocity on the part of EU member states.
Through HR of the company faces lots of implication but beside this, UK employers also still
handling different working permission which is offered by every state members.
On the other side, Brahic and Lallement (2020) also stated that when UK exit from
EU, it open way for the government and also revoke different employment law without any
interruption from Europe. While, on contrary, Brexit further allow UK government to make
alteration in their employment laws such that protection from unfair dismissal and
discrimination which are unlikely to be altered. Thus, it create direct impact upon the
business who are operated in UK and companies consider the immigration implication for
their current workforce in many situation. One of them is, if UK leaves EU on any specific
dates then, the person who are residing or working in UK before that date will have to stay
there till the EU settlement scheme.
In addition to this, also evaluated that Vathi and Trandafoiu (2020) immigration is the
major concern for the companies because it creates direct impact upon employees as well as
their families too. Such that if UK leave EU with a deal of specific transition period then it
will allow the free movement between UK and EU. Even as per the InterNations Expat
Insiders 2018 survey report shows that UK is now ranks in bottom 10 expat destination. Also,
Great Britain also slid in a global survey on fostering and attracting talent and as a result, it
falling to 23rd range out of 63. Thus, it reflect that Brexit affect the employees and statistics
also confirm that most of the EU employees are moving in UK and that is why, the country
become one of the less attractive destination for global talents. Further, Khattab and et.al.,
(2020) stated that UK government also put lot of efforts in order to maintain or access the
talent so that it will assist to build successful economy.
Koch (2016) evaluated in their study that due to Brexit, there is a loss of GDP and
most of the employees loss their job and it also create negative impact upon Expat
employees. Such that in City of London, many people loss their job because most of them
are exporters and that is why, it affect the overall performance of the country in negative
manner. In the same way when the Brexit date is announced it us analysed that stock market
are likely to change swiftly and it also impact both GBP as well as USD (Brexit update:
effects on employment, 2020). Therefore, this a positive sign for the Americans expat who

living within UK are more likely to see this is a favourable turn of events because of sudden
fall in British pound. Hunt and Wheeler (2017) also support that all the US citizen who are
live in UK with a dual citizenship are also fully fledged EU citizens. Such that if a person
hold US Italian, US Spanish are also required to apply for the settlement status only if they
have been in UK for the five year consistently from Brexit. As a result, US expats will also
be influenced only when they have EU spouse who are currently residing with a UK.
Simpkin and Mossialos (2017) present their views in the study that British workers
are also already fully employed in EU member state and this is currently unlikely to see any
difference in how they are treated. But author also state that working in EU could be more
difficult for UK expat. Such that they will not be longer have any right to work in another EU
state and as a result, they have to apply for a Blue Card. This is specially designed by
government so that they make Europe more attractive destination for the professionals from
outside EU. So, this scheme is actually help the professionals so that they become world's
favourite migration destination because of many reasons. Like, working and salary
conditions equal to nationals, get equal employment rights, permanent residence perspective,
freedom of association and many more. On the other side, Vathi and Trandafoiu (2020)
critically evaluated that in order to make EU more attractive working destination, this Blue
Card scheme is not granted from UK who want to work in UK post Brexit. Therefore, they
have to met with three condition such that Non EU Citizenship, educated or skilled, work
contract or bidding job offer.
Moreover, Brexit did not only create negative impact but it also provide different
employment opportunities to expat employees such that Hall (2020) stated that there may be
chances of having a new free trade deal between UK and US and for that top companies have
to hire new employees and at that time, they use expat employees. Therefore, this new free
trade deal also see new employment opportunities for US expats in UK and as a result, it may
replace EU citizens by US citizens. Beside this, any US citizens currently working with EU
companies also have alternatively relocate to EU an also follow many EU companies also
leaving the UK post Brexit. Thus, it is clearly reflected that most of the US expats are
currently residing within UK are actually more likely to be positively impact by this Brexit
results, unlike those who are EU citizens. Further, it is also foresee there are negative
consequence of Brexit for US nationals only when they tie to EU because of holding dual
citizenship and also having a relationship with EU citizens who may leave after impending
the Brexit date. Therefore, it is clearly reflected by Watts (2017) that by taking decision of