Sunday, July 7, 2024

Recruitment Challenges in the Post-Brexit Era for British Businesses

British business sectors continue to grapple with staff shortages, as the heavy hand of Brexit stifles recruitment.

Companies across the UK have felt the labour force squeeze, with those operating within industries such as food production and hospitality affected most acutely. 

Thousands of vacancies – previously filled by lower-skilled workers from countries within the EU – remain open. 

Replacing EU Workers in UK Businesses

The government’s points-based approach to immigration has been hammered by critics, cited as too costly and bureaucratic for businesses previously reliant on European workers.

Speaking with the Guardian, Nick Allen, the Chief Executive of the British Meat Processors Association, remarked that he didn’t think that “anyone believes we’ll ever be able to fill all those roles with British-sourced labour”.

Nowadays, rather than filling essential positions with workers from the EU, butchers are being brought over to the UK from the Philippines. 

This comes with a significant price tag. Allen explains that when the cost of visas, travel and accommodation has been factored into the recruitment process, approximately £12,000 is spent on hiring each worker.

For an industry that had a workforce made up of 65% non-UK staff pre-Brexit, today’s recruitment challenges have proven crippling for many businesses.

Kate Nicholls, the Chief Executive of UK Hospitality, paints a similar picture for businesses operating within her sector.

“You can recruit an executive chef but if you don’t have a kitchen porter, the kitchen can’t open. If you don’t have housekeeping, the hotels can’t open: those basic skills are needed.”

Of course, in times like these it is small businesses – operating with smallest budgets and minimal capital reserves – who are hit the hardest.

Small businesses access unsecured, fast funding from Got Capital. As an alternative lender, Got Capital offers financing solutions specifically designed for and catered to the needs of SMEs.

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