International HRM Challenges and Brexit: A UK Perspective

This report delves into the multifaceted impact of Brexit on international Human Resource Management (HRM) practices within the United Kingdom. It examines critical areas such as international recruitment, highlighting the NHS's dependence on EU workers and potential solutions to address staff shortages through strategic recruitment initiatives. The report further explores the effects of Brexit on international reward systems, including the reduction of bonuses and pay increases, and emphasizes the importance of retaining talent through effective reward and recognition practices. Additionally, it discusses the challenges to managing diversity, such as restrictions on the flow of diverse workforces and racial tensions, and the need for inclusive organizational cultures. The report also addresses the importance of employee development in bridging skills gaps and mitigating the negative impacts of Brexit on businesses. The conclusion underscores the significance of proactive international HRM strategies in navigating the challenges posed by Brexit, emphasizing employee development, reward systems, and talent retention.

INTERNATIONAL HRM
AND BREXIT ISSUE IN
UK

Introduction
 Brexit is the withdrawal of United
kingdom from the European Union.
 International HRM - the set of activities to
manage human resource of a firm at
international level to attain its goals and
objectives and gain an advantage over
rival firms.

International recruitment and
Brexit
 Huge shortage of health care staff within
NHS due to Brexit.
 European Union staff make 5.6 percent of the
NHS workforce (Holmer, 2017).
 9 percent of the doctors are from EU nations.
 NHS has high dependence on EU workers
(Forster, 2017).
 Hostile immigration approaches may led to
chronic level of vacancies (Mcintosh and
West, 2017).

International recruitment and
brexit
 International recruitment is the best
possible approach to deal with the impact
of brexit on NHS.
 employers can play the key role in
protecting the UK brand (Davies and
Rolfe, 2017).
 mobility of talent from overseas nations
can help the businesses to fill up the
vacancies in construction and healthcare
(Moore, 2017). .

International recruitment and
Brexit
 employers who rely on talent as an economic
differentiator should ensure that it is maintained in
UK for present and future.
 UK must be regarded as a nation that is open to
business in spite of brexit crisis. It means it is also
required to be open to talented individuals that come
to the nation for work opportunities.
 The government can handle the NHS crisis by
ensuring that there is a free movement of doctors,
nurses and other health care staff (Watson, 2017).
 Along with this free movement of those individuals
that have a job offer in hand and points-based
system should also be there.

International reward and brexit
The brexit issue has resulted in
 issue of higher import cost on account of brexit
that led to a fall of pound by 11.5 percent against
the Euro and 19 percent against US dollar.
 less pay increase to employees and cut on
employee rewards.
 review of bonuses schemes and executive
packages so as to ensure that it is affordable for
the management.
 British airways withdrew its My Incentives payment
and bonus (Ross, 2017).
 reduction in the bonuses by Waitrose.

International reward and brexit
 Need is to retain their talented staff by focusing
the reward and recognition practices.
 Employees will feel valued, engaged and
motivated to work for a longer span of time.
 Employers must explain to the staff members as
to how the brexit issue is going to put an impact
on their rewards and what bonus decisions has
been made by the company (Wright and et.al.,
2016).
 Very essential that employees are not
disillusioned if management is enjoying perks
and there bonuses are falling down.

Managing diversity
Diversity issues due to brexit are
 restricted the flow of ethnically diverse workforce to the nation
 limitation on the ability of businesses to come with fresh ideas
and serve new markets.
 drop in EU nationals who are applying for the roles in UK
especially nurses where a drop of 89 percent has been seen.
 several racial and ethnic tensions within the UK in form of attack
on EU nationals.
 This strategy is very bad for the entrepreneurs who are at the
crucial juncture of evolution.
 KPMG employs around 12000 people as accountants, lawyers,
forensic experts and has been promoting diversity within the
workforce.
 19 percent of KPMG’s employees are native to the nations other
than Britain while 700 are from other EU nations.

Managing diversity
 A study by McKinsey - firm with diverse
workforce outperforms the non-diverse ones.
 Need to develop and maintain the diversity
aspect of its organizational culture (Barak,
2016).
 develop a supportive culture where employees
get both practical and emotional assistance.
 strict laws in the area of anti-discrimination;
Race Relations Act (Harvey and Allard, 2015).
 cultural steps to welcome the minorities and
EU nationals in the workplace.

Employee development
 Due to brexit issue businesses cannot
depend on outside talent to bring in new skill
set and expertise within the organization.
 Result in substantial amount of skill gap
within the organization.
 a substantial increase in the operational cost
of organizational that will bring a reduction in
development activities.
 very essential that the employers do not
allow the uncertainty of brexit to bring a cut
on the training and development activities

Employee development
 management focuses on up skilling there current team in
order to fill the gap rather than focusing on the
recruitment activities.
 Need to take professional development programs to
secure the existing talent rather than relying on overseas
talent pool (Fontinha and et.al., 2017).
 instill a culture of continual improvement and
development within the employees.
 Technology can also be utilized by the firms to ensure
that employees have a better access to learning activities
(Sparrow and Otaye- Ebede, 2017).
 If the employee is keen in the area of learning and
developing there skill set then it can save the businesses
from future skill gaps.

Conclusion
 practices in the area of international HRM
an play a key role in reducing the impacts
cause on account of brexit issue.
 developing the skill set of existing
employees so that the organizations can
cope with any kinds of change.
 Rewarding and recognizing the
employees can help in boosting there
morale and reducing their chances of
leaving the firm.