Report: Impacts of the UK Referendum on Human Resource Management

This report examines the impacts of the UK's European Union membership referendum, also known as the Brexit referendum, on human resource management. The analysis focuses on the effects of the referendum results on recruitment and retention within the human resource sector. The report discusses the potential for skills shortages due to the relocation of skilled workers and the challenges posed by visa requirements for EU employees. It also considers the advantages and disadvantages of Brexit on HR, including changes in duty laws and the impact on workforce diversity. The report concludes that the referendum outcome will lead to both positive and negative impacts on recruitment and the overall HR landscape. This study uses multiple sources to support its findings.

RUNNING HEAD: Impacts of Referendum Results
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Impacts of Referendum Results

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Table of Contents
Introduction.................................................................................................................................................3
Impacts of EU referendum result on Human resource................................................................................3
Impacts of EU referendum results on recruitment and retention...........................................................3
Advantages..........................................................................................................................................4
Disadvantages......................................................................................................................................5
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6

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Introduction
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

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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):
Advantages:
 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).

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 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.
Disadvantages:
 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.
Conclusion
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

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European Union workforce will make the business to miss out a major opportunity for the social
focal points of the skilled workforce.
References
Baker, A.H., Ali, R.R. and Thrasher, A.J., 2016. Impact of BREXIT on UK gene and cell
therapy: the need for continued pan-European collaboration.
Goodwin, M.J. and Heath, O., 2016. The 2016 Referendum, Brexit and the Left Behind: An
Aggregate‐level Analysis of the Result. The Political Quarterly, 87(3), pp.323-332.
Portes, J., 2016. Immigration, free movement and the EU referendum. National Institute
Economic Review, 236(1), pp.14-22.
Protsyk, O. and Osoian, I., 2010. Ethnic or multi-ethnic parties?: Party competition and
legislative recruitment in Moldova.
Renwick, A., 2014. After the referendum: options for a constitutional convention. The
Constitution Society.
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.
Setala, M., 2011. The role of deliberative mini-publics in representative democracy: lessons from
the experience of referendums. Representation, 47(2), pp.201-213.
Torrington, D., Hall, L., Taylor, S., and Atkinson C., 2014. Human Resource Management
9th edition, Pearson.