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Following the Prime Minister’s announcement that the UK will begin formal negotiations to leave the EU by the end of March 2017, organisations need to prepare for Brexit now more than ever. Once Article 50 is triggered, the UK will be less than 104 weeks away from Brexit –including a couple of Christmases and summer holidays, leaving little time to prepare as the shape of the UK’s new relationship with the EU is negotiated.

Since the EU referendum, clients have been asking us: what are the implications for HR? We see three immediate priorities.

First, help the business create a positive mindset to take advantage of the opportunities that arise. Develop a proactive communication strategy, and provide a channel for employees to share concerns. Reaffirm company values of openness and inclusiveness.

Second, address the ‘here and now’ issues. In light of the Prime Minister’s recent announcements, businesses heavily dependent on labour from the EU and EEA need to start planning for a radically different immigration regime. Organisations should also be thinking about assessing how economic volatility is affecting bonus pools, incentive targets, and pension funding and decide what action's needed. Make sure your bonus plans will motivate employees through this period of transition. Provide reassurance to employees where you can that nothing's changed and help employees deal with practical concerns like residence applications.

Third, look longer term. Understand how immigration policy could affect your talent pipelines. Review the impact of any business moves. Think how your employee value proposition may need to change. Get educated on the implications of Brexit and be prepared to participate fully in your company’s scenario planning. Finally, look at how you'll source the specialist resources required to get Brexit done.

We're here to help you across all these areas so you can create opportunity from change.

Summary of Brexit and HR related issues

This short document explores the implications for HR following the EU referendum.

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Need further information on this topic?

For a more detailed discussion of the three people-related implications of Brexit for your organisation, please contact Tom GoslingBen Wilkins or your usual PwC advisor.