River Insights: Brexit

Brexit: what impact will it have on UK hiring?

River’s Charlie Binns, Consultant in our International Strategy Practice has interviewed 37 strategy and corporate development leaders in the UK based banking, consulting and FinTech industries to get their opinion on  the effects that Brexit would have on recruitment in the UK. Let’s see what he found:



What will this mean for recruitment?

•    People are less likely to move jobs in uncertain times.
•    EU nationals working in the UK may be protected should we exit, however there is no certainty in this deal.
•    Widely predicted that London based jobs may relocate meaning job losses – as to how many, depends on which economist you read.
•    Widely predicted slower growth under Brexit scenario.
•    A real fear that companies seeking to hire best talent may have to operate in much restricted circumstances for the foreseeable future post Brexit.
•    8 out of our 10 clients have hired less in the last 2Qs than the 2Qs before
•    Regardless we are witnessing a hiring moratorium until after 23rd of June.  

Trade Laws:

•  It’s predicted that potential changes to market freedom and trade laws for the UK will be detrimental, but in reality a lot of commentators argue that the UK would keep these laws so as to not negatively affect financial services in the UK.  
•  There is an argument that if the UK left the EU then we would have greater control over regulation. However if we wanted to continue trading in Europe then the UK would still need to adhere to EU regulation.
•  If the UK were to leave the EU then our financial regulation would be different to the rest of Europe which would make it more difficult to trade.

Passporting:

•  Those in favour of the UK’s membership of the EU base their arguments on the economic importance of the free trade of goods, banking, insurance and other services. Most importantly, at least from a recruitment perspective, the free movement of people. Under a Brexit scenario the UK would not be able to take part in the development of EU policies around Passportingwhich would likely mean restrictions on freedom of trade to and from UK.

Investment:

•  Some argue that leaving the EU will put off future investors who will not want to be restricted by not trading along similar lines to other EU member states. 



To read the full insight please click here: Brexit Newsletter.pdf

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