Brexit's Impact on UK Logistics Recruitment
BUSINESS AND MANAGEMENT DISSERTATION
To Perform an Investigation to Examine the Recruitment Sector Pre-Brexit and Post-Brexit and the Influence of Brexit on the Logistic Organisations
INTRODUCTION
Brexit has bought various challenges for the organisations in the United Kingdom. The research report will focus on the employment practice of the logistics sector by focusing on the influence of recruitment process pre-Brexit and post-Brexit. Brexit is known as the exit of the British citizens from the European Union (Lynch et al., 2019). This report will analyse how logistic businesses in the United Kingdom are facing challenges post-Brexit. Further, the report will evaluate the possible problems and opportunities that have been occurred because of Brexit in logistic organisations in the United Kingdom. This will help the researcher to determine how long the logistic industry will be influenced because of Brexit.
On June 23rd, 2016 the United Kingdom chosen for leaving the European Union and on December 31st, 2020 the United Kingdom officially left the European Union (Arnorsson and Zoega, 2018). Brexit generated various problems for the organisations in the United Kingdom because they drop the access to free trade policy that was used in trading freely in the foreign market. The free trading policy has helped the researcher in performing the research process effectively so that the research objectives will meet effectively. Logistic organisations have come across several changes in the environment of business that are generating challenges and opportunities for organisations. This research will help in defining the influence on recruitment process pre-Brexit and post-Brexit in the logistic sector (McLeay et al., 2018).
RESEARCH AIM
The purpose of this research is to perform an investigation to examine the recruitment sector pre-Brexit and post-Brexit and the influence of Brexit on the logistic organisations. So that it will help in getting the knowledge about the problems faced by the EU citizens in getting the job and by the organisations of the United Kingdom because of the reduced workforce and in recruiting the employees for the proper operations of the logistics industry.
RESEARCH OBJECTIVES
To examine the impact of Brexit on the logistic sector
To evaluate the change in recruitment process pre-Brexit and post-Brexit
To analyse the impact of the Employment law in recruiting and selection process
RESEARCH QUESTION
Examine the influence of Brexit on the logistic sector
Evaluate the changes in the recruitment functions pre-Brexit and post-Brexit
Analyse the impact of the Employment law in recruiting and selection process.
LITERATURE REVIEW
RECRUITMENT BEFORE BREXIT
As stated by Zeng (2021) Before the Brexit situation, it was easy for EU candidates for getting a job in the United Kingdom and they were able to work without any major restrictions. It was easy for the EU candidates to get the job role according to them which they have some knowledge or skills related to that. Unskilled employees were also able to get the job because they were allowed to work as migrant workers as well. Conditions of migrant workers were also good before the Brexit situation, slavery and discrimination were less compared to post Brexit situation. Migrant workers were able to apply for the visa as well because there were not any strict rules regarding that. Before the Brexit situation, the United Kingdom never faced a shortage of labours or workers because there are so many labours and workers were there for work. Recruitment before Brexit was easy because there were no strict restrictions on the working of an EU employer or migrant worker was there. The market condition of the UK was also good because there was a sufficient number of employees in the UK. However Tiwasing (2021) argued that many of the organisations were facing problems due to easy application for the jobs and easy recruitment.
RECRUITMENT AFTER BREXIT
Over the past few years, organisations have faced a lose in the number of international applicants that can seek employment opportunities in the United Kingdom. As stated by Sjöö and Wellmark (2019) this is happening because of the Brexit situation in the UK. Brexit has influenced the practices of recruitment as there are various changes have been made in the strategies and function of recruitment after Brexit. Scotford and Bowman (2016) viewed that one of the predictable consequences of Brexit is that the workforce of the EU has been reduced in the United Kingdom. There are numerous EU candidates that have been facing challenges in working in the United Kingdom. Portes (2016) stated that if the EU candidates want to assess the job they required to apply for a Skilled worker Visa or European union settlement scheme (EUSS). Only this is the thing that could make the EU candidates suitable for getting work opportunities in the United Kingdom.
Moradlou et al., (2020) discussed that due to the regulations and laws imposed in Brexit it has reduced the number of employees from the European Union which is the major reason for the shortage of workforce in the United Kingdom. As there are so many candidates that do not meet the requirement and criteria of a visa and same type of condition is faced by the non-EU nationals as well because they are also not able to seek the opportunity of job and live in the United Kingdom as the government has made very strict and rule and regulations for working in the United Kingdom and for living there as well.
HR BEFORE AND AFTER THE BREXIT
As viewed MacRae et al., (2021) by Before the Brexit situation in the UK, human resource management was quite easy job as recruitment of the employees was not that big task for the human resource manager. They were allowed to recruit any employee that can fit the required profile. Immigration policies were not strict and EU workers were also allowed to work in the organisation of the UK without any strict visa policies or skill certifications.
After Brexit, employee recruitment has got difficult for the human resource department has got difficult for the human resource manager as they cannot recruit any employees now. It is important for them to recruit the employees according to the rules that have been made from January 1st, 2021. After the imposing of Brexit, the rule has been made by the government that the people that are reciting in the UK by the end of 2020 will have to apply for settled or pre-settled status so that they can get the right of living and work in the UK and this become important of the HRs to communicate with the employees so that they can apply for the status or else they will have to leave the job. It became important for the human resource managers to review the immigration audit, reviewing and amendment of the policies for ensuring that the employees have gotten known about the immigration policies and human resource management of the organisation will also take care of the policies (Mahfouz et al., 2018). Recruitment after Brexit has become challenging for the human resource department of the organisations because before recruiting any employee there are so much of documents that have become necessary to check by an employer because according to the employment law of the UK the verification of those documents is needed for the organisation because then after an individual can get the permission for work and settling in the UK. Clarke et al (2017) opposed that, somewhere new employment law needs by the UK because employment rate within the population of UK was not as it was easy for the migrant workers and international workers to work in the UK and now because of new employment law it has become so difficult for the international candidates in applying for the job and getting the work visa. The process of a skilled worker Visa or European Union settlement scheme (EUSS) is tough and of so many applicants only a few were able to meet up with the criteria.
EMPLOYMENT LAWS
Cleaver (2022) explained that the deal of Brexit has come in the effect on 31st December 2020, when the United Kingdom declared that they are no longer certain of the law of the European Union. Billing et al., (2021) argued that the United Kingdom and European Union should emphasise on bringing modifications in the rights of employment that have been changed and came into action from 31st December 2020. Bandele and Banga (2017) opposed that some provisions of the EU have been restricted the capability of the United Kingdom to make adjustments in the law of employment so that trading can be improved and opportunities for employment can be increased.
According to BBC (2022) the United Kingdom can change their employment laws if parliament passes the legislation of changing the agreement. That agreement especially will recognize the right of each party so that they can determine the labour and social level of protection for modifying the laws accordingly. The UK is no longer bound to adhere to the employment laws of the European Union. In January 2021 it was confirmed by the government that they are reviewing the European Union Labour Laws. Changes that occurred due to Brexit were predictable but it was not clear how drastic those changes will be. Because of so many loopholes in the European Union Laws, the UK legislation decided to set their employment and other laws that can benefit the country and the employees as well. As the UK make a withdrawal from the EU so it does not make any huge impact on the laws of the UK immediately. Many of the commentators have identified the harmony among the contracts after a transfer of TUPE, holiday pay calculation, worker's right agency, the introduction of a capital
The government of the UK has made several laws for employment that is important for organisations. When the government of the UK has adopted the social chapter that was previously rejected by the conservative government, at that time law for the equal right of agency workers came into the working. Post-Brexit situations got changed as working with international clients has become more challenging because of the changing laws and immigration criteria that have been set by the government. Ahlstrom- Vij et al., (2018) stated that if anybody is going to the UK for the purpose of work then they need have the proper skilled visa and after having that only employees can work in the United Kingdom.
RESEARCH METHODOLOGY
This research will be done with the help of the onion model of research. This model was proposed by Saunders in 2007 for helping the researchers in conducting the research effectively and also helps in setting the direction so that aim and objective of the research can be achieved according to that. This model is known as the onion model because from the outside it seems like an onion as it has consisted of various stages of research (Cillessen and Marks, 2017). Every single stage of the research helps in achieving the objective research. For every researcher, it is important to conduct the research in the set direction so that research can be done effectively.
RESEARCH PHILOSOPHIES
There are so many research philosophies that can be used in the research like interpretivism, positivism, realism, and pragmatism. In this research, the Interpretivism research philosophy will be used by the researcher because it will allow the researcher in the interpretation of the impact of Brexit on the logistic sector and their effect on recruitment practices. This research helps in observing the views and perceptions of the people towards a certain topic so that research can be done through the experiences of the people (Chen and Yi, 2020). The major advantage achieved by the researcher after considering the interpretivism research philosophy is that it helps them in determining the outcome of the report based on the responses they have collected from the participants which are based on their experiences and knowledge. It helps the researcher in finding a valid outcome that is close to fact.
RESEARCH APPROACHES
There are several approaches that can be used by the researcher to preceding the research further. The types of approaches are inductive and deductive. A deductive approach has been selected by the researcher that will enable them in performing the research based on the solutions to the problems that have arisen in the research. This approach considers the pre-existing theories for comparing them with the achieved outcomes so that the research can make the hypothesis based on the comparison and can find the result based on facts (D?wigo?, 2020). The research will avoid the use of the inductive approach as it is a long process and also consumes a lot of time.
RESEARCH STRATEGIES
The chosen research strategy is the survey Strategy. In the survey strategy, the researcher will prepare questions that will contain the various options so that when it will be asked to the participants for answering questions it will help them in choosing the options based on their experience and facts. Through the survey, strategy researchers will be able to collect important and useful information that will help them in contributing to meeting up with the research aims and objectives (Opie, 2019).
RESEARCH CHOICES
The researcher will be based on the mixed method because it will help the researcher in performing the research while considering both qualitative and quantitative data (Katahira and Yamashita, 2017). Both of the methods have been used by the researcher as it will them in evaluating the outcomes both based on the data analysed from the other research that has been done in the past and by collecting the data through the survey as well. Qualitative data will help the researcher in the interpretation of data collected through literature review and quantitative analysis will help in the interpretation of statistical data that will be collected through the survey conducted by the researcher. The mixed-method will help in getting the data based on facts and experience of participants and other researchers.
RESEARCH TIME HORIZON
The research time horizon estimated by the researcher will be a cross-sectional time horizon because it will be appropriate for the researcher as it will help them in performing the research within a particular period of time. The researcher will emphasise evaluating the outcomes that will enable the researcher in conducting the processes of research effectively so that the aims of the research can be met successfully (Opie, 2019). The researcher is not considering a longitudinal research time horizon because it could take decades in completing the research along with required alternations so that the objectives of the research can be met efficiently.
RESEARCH TECHNIQUES AND PROCEDURE
Both Primary and Secondary research methods will be used by the researcher in performing the research because the researcher is going to use a survey strategy that will help them in gathering the related information from the participants based on their experiences and facts (Peloquin et al., 2020). The researcher will also conduct a review of the literature so that the data can be gathered from the research that has been done in the past on the relevant topic.
DATA COLLECTION
The data will be collected with the assistant of both primary and secondary data collection methods. Both qualitative as well as quantitative research methods will be used in the research that will help the researcher in evaluating both statistical and theoretical data that will be used in the research and will be going to help the researcher in achieving the aims and objective of the research in the set period of time.
SAMPLING AND SIZE
The data will be gathered with the assistant of interpretation of the answers of HR professionals that are working and have relevant knowledge in the logistic sector so that the researcher will analyse the important information for accomplishing the aims and objectives of the research (Opie, 2019). The researcher is going to select 20 HR professionals within the logistic industry while considering the random sampling method so that researcher will be able to select the random HR professionals in the logistic sector. The random sampling method helps the researcher in selecting the employees at random without any biasness so that their participation can make the research successful and relevant outcomes can be presented.
PRIMARY RESEARCH
Primary research enables the researcher in conducting the survey so that they can get genuine data from the participants. Participants will be chosen from the logistic industry because they will help in gathering the data based on their experience and current trends that are going on in the industry so that research can find the impact of Brexit on logistic businesses and the change that has been faced by the employees in recruitment practices due to Brexit effectively (Baig et al., 2020). The data will be collected through Google forms that will contain certain sets of questions for collecting the data and analysing it in future. The collected data will be presented with the help of tables, graphs and pie charts that will indicate the findings effectively.
SECONDARY RESEARCH
Secondary data will be collected through a review of literature that will be analysed by the researcher after reading books, evaluation of past research that has been done by other researchers on relevant topics and articles relevant to the influence of Brexit on logistic organisations that will help the researcher in conducting the research successfully (Sluka, 2018). The research paper that has been available on Google scholar only will be considered by the researcher because it contains authentic research papers.
LIMITATIONS OF THE RESEARCH
The researcher is considering a survey strategy for collecting the relevant information related to the topic of research and for performing the primary data collection method. The limitations that can be faced by the researcher while using a survey strategy is that it does not allow the researcher in discussing and in asking the question in detail to the participants (Katahira and Yamashita, 2017). As a result, the researcher can conduct an interview with the participants that will allow the researcher in asking the questions and analyse the responses in detailed discussion data will also be collected in detail but also, it will take a lot of time while conduct this whole process.
ETHICAL CONSIDERATION
While conducting the research it is important to maintain some ethical considerations that can help the researcher in making a fair report and respondents in participating without any hesitations. At the time of conducting the survey proper anonymity of the respondents has been maintained so that their personal details do not get leaked and they can respond to the answers without any problem. In the secondary research, proper credit to the authors of the research has been provided so that their efforts could be recognized and academic integrity will also be maintained.
ANALYSIS
As per the above chart, it has been shown that in the survey conducted by the researcher there are 60% of the male HR professionals that have taken part in the survey, 40% of the female HR professionals have participated in the survey and contributed to collecting the data so that research can be conducted effectively and they can share their experiences as well.
The above chart is indicating the age of the participants. In the chart, it is shown that the participants between the age of 18 to 30 are 30% whereas a majority of the participants belong to age among 30 to 45 the HR professionals and 25% of the HR professionals are between the age of 45-60. They all have participated in the survey for sharing their experiences based on the situation they faced with Brexit.
As per the above chart, when it was asked the participants that the job role of HR has become difficult post Brexit to which 30% of the HR professionals have strongly agreed to that followed by the 40% of the employees that have agreed to the questions as per their experiences. 25% of the HR professionals were neutral and according to 5% of the HR professionals, there is no difficulties have occurred in the job role of HR post Brexit.
As shown in the above chart, 25% of the HR professionals have strongly agreed that post Brexit getting a job in the logistics industry has become difficult followed by 30% of the agreed HR professionals for the same. 40% of the HR professionals were neutral in the survey as according to them pre Brexit and post-Brexit situations are the same for getting a job in the logistics industry and 5% of the employees have disagreed and shared that still, it is easy to get the job.
As per the above chart when it was asked by the participants that post Brexit is it easy to find talented and skilful employees to which 20% of the HR professionals strongly agreed on this question followed by 25% of agreed participants. 35% of the HR professionals as they do not see any difference in finding talented and skilful employees whereas 20% of the HR professional disagreed with the questions and shared that it is still easy to find talented and skilful employees.
As per the above chart when it was asked by the participants that in the post-Brexit situation, opportunities for jobs in the logistic industry have become less to which 30% of the HR professionals strongly agreed with this question followed by 35% of agreed participants. 25% of the HR professionals do not see any difference in finding opportunities for jobs in the logistics industry whereas 10% of the HR professional disagreed with the questions and shared that still there are so many opportunities for jobs in the logistics industry.
As per the above chart when it was asked by the participants does Brexit have made any impact on adopting recruitment practices in the logistics industry to which 25% of the HR professionals strongly agreed with the question followed by 30% of agreed participants. 20% of the HR professionals as they do not see any impact on adopting recruitment practices in the logistics industry whereas 15% of the HR professional disagreed with the questions and 10% of the HR professional have strongly disagreed with the questions and shared that they still there is no impact on adopting recruitment practices in the logistics industry.
The above chart it has shown that when asked about the challenges that occurred in the recruitment process post-Brexit the participants to which they have responded that 25% of the HR professionals think that immigration has reduced because of Brexit and it is the biggest challenge that has occurred whereas 25% of the HR professional think that because of visa policies have changed, the challenge is getting occurred followed by 15% of the HR professionals have thought that because of Brexit employment opportunities have become less and 35% of the employees consider all of the above options regarding the challenges occurred.
As shown in the above chart when it was asked the participants that on which factor, Brexit has made a huge impact on which they have responded that 20% of the HR professionals think that it has impacted productivity and profitability followed by 205 of the employees who think that it has impacted on the supply of products whereas 25% of the employees think that it has made a huge impact on the recruitment process within the industry. 35% of the HR professionals have agreed to all of the above options as they think Brexit has made a huge impact on every single factor.
According to the above chart, when it was asked the participants Why Brexit does have made a huge impact on the logistic industry to which 25% of the HR professionals were agreed that the industry was not prepared for the sudden change, 25% of the employees agreed that employees do not have the knowledge about Brexit at that time, 25% of the HR professionals have agreed because the supply of goods has been decreased and 25% of the Hr professionals have agreed to all of the above options as according to them because of all this reason Brexit has made a huge impact on the logistics industry.
FINDINGS
After the analysis of the review of literature, it has been found that Brexit has made a huge influence on the recruitment process of the logistics industry. After the 1st January 2021, the laws related to employment and recruitment practices have got changed. When the United Kingdom decides to leave European Union it has become a complex task for many organisations in the United Kingdom. There are so many logistic organisations that faced huge challenges in operating their business practices effectively. However, many of the authors also viewed that Brexit is a decision that has become very beneficial for organisations as looking it from a long-term perspective of growth (Hadfield and Turner, 2021).
The decision to Brexit has impacted negatively on many of the organisations in the United Kingdom. Almost every organisation has drop the free trade policy that led them in creating the goods more costly and because of that inflation rate has become higher and citizens of the United Kingdom also started to face the problem regarding their spending habits (Mahfouz et al., 2020). The main reason for this is because of Brexit, the costs of exporting goods and services globally have enlarged drastically. Due to this, the operational cost got increased that have made a negative impact on the organisations within the logistics sector. Consequently, the increased exporting rates have lowered the profitability of the organisations and their employees as well.
The logistic organisations have faced huge problems from Brexit as it has resulted in the high price of exporting goods and services globally. This also has enlarged the operational processes related to logistics and because of the negative impact of Brexit on businesses of logistics, the whole supply chain has got affected as operational costs have increased in logistics and due to that it become important for other organisations of the supply chain to increase the cost as well (Moradlou et al., 2020). This has made an overall negative influence on the working and operations of the logistics industry and increased the challenges for organisations as well as for the employees and citizens of the United Kingdom.
Brexit has made a huge influence on the recruitment process within the logistics industry because the government has changed the employment law of the United Kingdom as well. Immigration has reduced because of the changes in employment law as now recruiters are not able to recruit employees international till they do not have the accurate skilled employed visa. It has become important for international candidates to have a skilled employed visa for working and settling in the United Kingdom. However, there are so many authors that have stated that Brexit is a good opportunity for the residents to get employment that will be going to help the United Kingdom in increasing the employment rate and also in the development of the local residents. The government is also launching many other working opportunities so that their citizens can contribute to increasing the local economy (Powell, 2017). Even though, from the analysis of primary and secondary data collection methods, the gained outcome is that Brexit has made a negative influence on the recruitment practices within the logistics industry and everything has got changed post-Brexit as compared to pre-Brexit. The job role of human resource manager has also become difficult and somewhere they are facing problems in finding talented and skilful employees for the organisations. The staffing needs of the organisation are also not fulfilled because of the laws imposed by the government of the United Kingdom.
RECOMMENDATIONS
From the above analysis, it can be recommended that it has become important for human resource managers to work on the basis of laws made by the government post-Brexit. The human resource manager within the logistics industry can try to make the employees aware of the laws so that they can work according to them. While recruiting the new employees they can take care of laws and can recruit the employees based on those rules. Brexit is the situation that might be known by every single person that is a citizen of the United Kingdom and an employee also. Based on the findings it can be said that organisations should come up with a plan that can help them in increasing the opportunities for employment and make the supply chain sustainable. As exporting prices is getting increased they should start to adopt sustainable practices within the organisations of the logistic industry. The human resource manager has got an opportunity of focusing on talented employees of the United Kingdom itself and on developing the skill for aligning it with the present and future work culture in the whole world. Organisations can also make their unique set of options for overcoming the challenges and can take the ideas from the human resource managers also so that they can give the options based on their experience of recruiting the employees post-Brexit. The organisations within the logistics industry is having the opportunity of improving their business by finding talented employees and by reducing the post-Brexit challenges.
CONCLUSION
From the above research report, it concluded that Brexit has made a huge negative influence on the logistics industry as the recruitment process post-Brexit has become more difficult and now it is not easy to find talented and skilful employees because of the employment laws that have been made by the government of the UK. For conducting a successful report and achieving the objectives and aims of the report the data has been collected through both primary and secondary data collection methods so that statistical and theoretical both types of data can help in getting knowledge about the impact of Brexit on the recruitment process of the logistics industry. Overall, the research has shown the negative impact on the recruitment industry before and after Brexit and the influence of Brexit on the logistic organisations. The researcher has analysed how logistic organisations in the United Kingdom are facing problems after Brexit. Further, the report has discussed the possible problems and opportunities that have been occurred because of Brexit in logistic organisations in the United Kingdom. This research has helped the researcher to determine how long the logistic industry will be impacted because of Brexit.
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APPENDIX
SURVEY FORM FOR PRIMARY DATA COLLECTION
Gender
Male
Female
Age.
18-30
30-45
45-60
Does the job role of HR have become difficult post Brexit?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Post-Brexit did getting a job in the logistics industry has become difficult?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Post-Brexit is it easy to find talented and skilful employees?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
In the post-Brexit situation, opportunities for job in the logistic industry have become less?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Does Brexit have made any impact on adopting recruitment practices in the logistics industry?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Challenges occurred in the recruitment process post Brexit?
Immigration has reduced
Visa policies have got changed
Employment opportunities became less
All of the above
According to you, on which factor, Brexit has made a huge impact?
Productivity and profitability
Supply of products
Recruitment process
All of the above
Why Brexit does have made a huge impact on the logistic industry?
The industry was not prepared for change
Employees not knowing about Brexit
Decreased the supply of goods
All of the above
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