ACSK4001 Report: Brexit's Impact on Royal Dutch Shell

This report provides a detailed analysis of the impact of Brexit on Royal Dutch Shell, an oil and gas company. The report explores the challenges faced by the company in talent acquisition and management due to changes in immigration laws and employment regulations. It examines the effects of Brexit on the recruitment and retention of skilled staff, particularly those from Europe, and discusses the impact on pay structures and employee motivation. The report concludes that while Brexit may not significantly affect the oil and gas industry in the UK, it has created disturbances in Royal Dutch Shell's talent acquisition and management processes. The report also offers recommendations, such as motivational sessions and extra benefits for European employees, and suggests the company take legal advice to navigate immigration law changes, and also make employees feel that Brexit will not affect them. This report is a valuable resource for students studying business development, providing insights into real-world challenges and potential solutions in the context of Brexit.

Running head- A STUDY ON THE IMPACT OF BREXIT ON THE ROYAL DUTCH
SHELL
A STUDY ON THE IMPACT OF BREXIT ON THE ROYAL DUTCH SHELL
Name of the Student
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A STUDY ON THE IMPACT OF BREXIT ON THE ROYAL DUTCH SHELL
Executive Summary
The purpose of this report is to analyse the effect of Brexit on the Royal Dutch Shell, a
company of oil and natural gas founded in London. United Kingdom. It gives a short
description of Brexit and the company. It briefly explains the amount of unbalance created by
Brexit in United Kingdom. It deeply analyses the talent acquisition and management
problems faced by the company. It also includes proper recommendations to cope up with the
challenges.

A STUDY ON THE IMPACT OF BREXIT ON THE ROYAL DUTCH SHELL
Introduction
This report is a detailed analysis on effect of Brexit on the Oil and Gas companies in
UK. The chosen organization for this report is Royal Dutch Shell. This report mainly focuses
on the area of recruitment and retention of new staff in Royal Dutch Shell after the
enforcement of Brexit. Brexit is a simpler way of saying British walking out of European
Union. (Hunt and Wheeler 2017). Royal Dutch Shell is an oil and natural gas company which
was found in 1907. It was founded in London, United Kingdom. It operates in more than 70
countries with an average of 82000 employees. (Shell.com, 2019)
Discussion
Effect of Brexit in Oil and Gas industry in UK
In UK, the oil and gas industry has experienced a moderate effect due to Brexit. The
oil and gas sector will not be highly influenced since after British has withdrawn from
European Union, it can implement its self- owned low carbon and renewable energy.
(Bouoiyour and Selmi 2018).
Impact of Brexit in Talent Acquisition and Talent Management in Royal Dutch
Shell
It is also true that Brexit would create some uncertainty in recruitment of staff from
abroad as it will have an impact on the flexibility and few restrictions need to be followed.
After the implication of Brexit, immigration laws will be restricted which will affect the
international hiring. For example, different job duration would require different employment
laws and legislation, In addition to that, the employment rules of British and Europe may not
be same anymore, which may affect the willingness of European workers to work in British
countries. (Sumption 2017). It is evident that Brexit had an impact in the employment relation

A STUDY ON THE IMPACT OF BREXIT ON THE ROYAL DUTCH SHELL
between Europe and British as the contribution of UK in the budget of Europe has fallen by
17% or 0.09 of their national income. (Wadsworth, Dhingra, Ottaviano and Van Reenen,
2016).These facts have affected the recruitment process of Royal Dutch Shell, they are also
facing problems in getting skilled labours from Europe to Britain. It is fact that the required
workforce may not be always Britain. This factor has partially restricted the availability of
talent for Royal Dutch Shell. Due to the change in employment immigration laws, there are
definitely some changes in the pay structure. This also effects the motivation and attitude of
the employees. Whenever, the pay structure is changed and it is not in the favour of the
employees, they start getting demotivated. Pay structure are related to the job satisfaction of
the employees. Royal Dutch Shell is also facing this problem and they are facing challenges
in retaining and motivating their talent. It is also getting difficult for them to motivate their
employees from Europe who are working in Britain as they have started feeling insecure.
Europe is rich in technological skilled employees and when it becomes restricted to export
employees from Europe to Britain, it is surely getting difficult for Royal Dutch Shell. Now,
they have to recruit more people from home country and train them which basically increase
their training cost which leads to more retention cost. (Sumithra 2018).
Conclusion
It has been concluded from the Brexit (Britain walking out of European Union) may
not have much influence in the industry of Oil and Natural gas in UK but it has surely made
some disturbance in Talent Acquisition and Talent Management of Royal Dutch Shell. The
company is facing challenges in getting skilled employees from Europe to Britain due to
changed immigration and employment laws. It has restricted the process of both internal and
external hiring of the company. Apart from that, the company is also facing retention
challenges due to demotivation in European employees who are working in Britain and the

A STUDY ON THE IMPACT OF BREXIT ON THE ROYAL DUTCH SHELL
potential changes in pay structure. Hence, it needs to take some proper measures to maintain
the balance of its employee management.
Recommendations
The Royal Dutch Shell can maintain its Talent Acquisition and Management process
by convincing its employees that Brexit will not impact their personal growth in the
company. They can arrange motivational sessions for the employees. The employees who are
coming from Europe to work in the company should be given some extra monetary and non-
monetary benefits. Royal Dutch Shell should take proper measures to avoid the confusions
created due to immigration law changes by taking proper legal advice. The best way to retain
their existing employees is to make them feel that Brexit has not made any major changes in
their employment and it is just a political decision.

A STUDY ON THE IMPACT OF BREXIT ON THE ROYAL DUTCH SHELL
References
Bouoiyour, J. and Selmi, R., 2018. Are UK industries resilient in dealing with uncertainty?
The case of Brexit
Hunt, A. and Wheeler, B., 2017. Brexit: All you need to know about the UK leaving the EU.
BBC News, 25.
Shell.com. (2019). Who we are. Retrieved 20 July 2019, from https://www.shell.com/about-
us/who-we-are.html
Sumithra, C.G., 2018. BREXIT: Talent Challenges for Recruitment and Retention.
DHARANA-Bhavan's International Journal of Business, 11(2), pp.21-25.
Sumption, M., 2017. Labour immigration after Brexit: questions and trade-offs in designing a
work permit system for EU citizens. Oxford Review of Economic Policy, 33(suppl_1),
pp.S45-S53.
Wadsworth, J., Dhingra, S., Ottaviano, G. and Van Reenen, J., 2016. Brexit and the Impact of
Immigration on the UK. Centre for Economic Performance. LSE, pp.34-53.