Brexit — how will technology recruitment be affected?
Brexit is a shock. There’s no doubt about that. It’s causing uncertainty in the financial markets, political upheaval, and a lot of personal distress to many people living here.
The technology industry was overwhelmingly pro-Remain, with 9 in 10 people in the industry against the decision. Now we have to ensure that Brexit happens on the best possible terms for us. There are a whole range of regulations and data laws that are going to have to be reconsidered, including recruitment law. The EU Commission’s Digital Single Market could be shut off from UK companies, meaning that they the UK would have to negotiate new terms with the member states.
One of the main concerns is how firms will deal with hiring the best talent. A report by the Department for Business, Innovation and Skills and the Department for Culture, Media and Sport shows that there is a significant digital skills gap in the UK. We were able to fill this gap by finding candidates from the EU. A survey done by startup incubator Wayra showed that over a fifth of all startup talent came from other EU states. As a member of the EU, British firms had access to the single market, and, by extension, all those who worked within the EU. EU law allowed this talent to freely move between member states without restrictions, allowing some of the top startups in London and the UK to attract the best talent from outside the country. This is no longer a guarantee, and, if politicians’ pontificating is to be believed, is probably no longer an option.
Taavat Hinrikus, c0-founder of Estonian company TransferWise, now based in London, told The Telegraph, “The two main benefits of being part of the EU are access to talent — because of the free movement of labour — and the fact that you can ‘passport’ regulation so if you’re regulated in the UK, you’re regulated across the EU. We don’t know what’s going to happen with either of those. It’s not good news for the tech sector either in the UK or in Europe.”
Other countries have already pounced on the UK’s stumble by trying to tempt away UK based tech companies. Both Ireland and Switzerland have tried to tempt Hinrikus and TransferWise, and the FDP (the German liberal party) have paid for a van to drive around London advertising the Berlin tech scene.
The future is uncertain. But, while the present gives us cause for concern, the future can be ours for the taking if we just reach out. We need to roll up our sleeves and get to work making Brexit work for us.
The government and the Bank of England are looking to ease the financial concerns over Brexit. A drop in corporation tax will reportedly be at the heart of any budget proposed by chancellor George Osborne, which should help keep businesses interested in operating in the UK. Bank of England governor Mark Carney immediately came out to reassure businesses and banks that the BoE would be available to help stabilise the markets and provide any and all assistance that would be needed. Carney is likely to announce that interest rates will be slashed by the middle of July. Carney has also eased lending rules for banks, allowing businesses to continue to grow during the Brexit period, and hopefully restoring confidence in the UK economy.
Whatever the future of the UK economy looks like, technology will be at the heart of it. It contributes 10% to the entire GDP. The UK cannot afford to cripple one of its fastest growing and lucrative sectors. The government needs to support the technology sector to ensure that it remains an attractive location for the best talent from the EU, and even further afield. Whatever deal the next UK government makes with the EU, access to the single market and freedom of movement should be maintained. However, as politicians are indicating, freedom of movement may not be on the cards. Several politicians and campaigners have touted an ‘Australian-style’ points system, where people coming into the country are allowed in based on their skills and desirability. Whatever your opinions on the subject, we have no doubt that our candidates will be some of the most sought-after employees, due to the skills gap in the technology sector. Talent will still be attracted to the country, companies will continue to grow aggressively, and Silicon Roundabout will be the engine of London — and UK — growth for years to come.
