Employers: Act now to prevent a Brexit talent drain

Since the Brexit vote last Summer I’ve heard from many business decision makers that they are watching and waiting to see how the triggering of Article 50 will affect their prospects. However, there is one area where Brexit is already significantly undermining your ability to compete – and you can’t afford to wait any longer before addressing it.

We analysed the behaviour of more than 3.5 million LinkedIn users to see what effect there had already been on the attractiveness of UK jobs to recruits (British and international). Our data shows that the UK’s vote to leave the EU in June had an immediate negative impact on businesses’ ability to attract top international talent. At the same time, the most sought-after UK professionals are showing an increased interest in leaving the country to work abroad. As a result, UK employers face growing challenges in sourcing the talent that they need to compete effectively.

Attracting international skills just got a lot harder

Looking at the overseas job searches made by university-educated professionals between January and September 2016 we were able to identify the impact of the June vote on their appetite for working in the UK.

The results are dramatic. Between May and July 2016, the number of global professionals seeking a job in the UK fell by 10% - and the number of those looking to move to a UK role from the EU plummeted by 18%. Interest had shown little sign of recovering by September, with the number of talented EU professionals looking at the UK remaining 12% below the level in May.

The impact of this sudden talent shortfall is being felt particularly keenly by the UK’s traditional powerhouse industries of financial services and technology, with interest in UK technology jobs down 14% and those seeking roles at finance firms down 12%. It’s exacerbated by the fact that university-educated professionals in the UK are themselves slightly more likely to seek jobs abroad since the Brexit vote.

Why businesses must up their game on competing for talent

When the impact of the UK’s decision on the talent pipeline is so immediate, businesses can’t afford for their response not to be. At the top level, they must seek to work closely with the UK government to ensure that Brexit policy is designed to support access to top international talent. But solutions to this problem can also be found closer to home.

Three steps you can take now

As a first step, every employer reliant on international talent should be analysing their talent pipeline to understand from where they source the skills they need – and how exposed they therefore are to the sudden drop in interest in working in the UK. Every business should be looking further ahead to build as much long-term visibility and resilience around their hiring strategies.

Once you know if you are likely to face challenges in sourcing top recruits, now is the time to work on strengthening your domestic talent pipeline to compensate – and time (long overdue, many would say) to invest in employee development that can mitigate against the increased difficulties of hiring skills in. There’s a real opportunity for UK talent here.

While the UK may become less attractive, your company likely has unexplored potential to stand out as an employer of choice, a badge that will overcome problems that afflict UK PLCs. To achieve that status, a strong, resonant talent brand will be essential. Just over half of LinkedIn members worldwide say that they would be less interested in working for a company if they don’t see and feel its purpose and values. Conversely, companies and brands with a reputation as excellent employers, strong values, and the ability to articulate their purpose, are always able to hire the best - even in the most challenging circumstances.

Get on the front foot: plan ahead, invest in the talent you have, and ensure your employer brand stands out. It’s easy to focus on the elements of Brexit that aren’t in our control but I’d urge every business to get ahead of the things they can.