Post-Brexit Immigration Rules Failing to Encourage Firms to Train UK Workers – CIPD

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It has been urged by the HR body that major changes need to be made to skills policy and industrial strategy to combat skills and labor shortages, based on the new CIPD report Migrant workers and skills shortages in the UK: Role of immigration rules in tackling post-Brexit skills challenges.

Among 2,012 senior decision-makers in the UK, the study found that just 15 percent have sponsored migrant workers since the new migration system was introduced in January 2021, despite there being more than half (57%) of firms with hard-to-fill positions.

Strategy for Employment in the UK:

According to the CIPD, employers have not stepped up their hiring of UK-born workers for low-skilled jobs and have increased investment in workforce skills development and technology as intended under the points-based system.

As a result of the post-Brexit restrictions on non-skilled workers, Yash Dubal, director of AY & J Solicitors, explained that “companies that employ people in roles deemed non-skilled, such as retail and hospitality, have been starved of workers, and the pandemic has curtailed the number of European workers allowed to work freely in the UK”. It is her belief that employers have failed to address skills gaps over many years, and are failing to adequately prepare young people for the job market with the skills and qualifications that businesses need, as explained by Liz Sebag-Montefiore, career coach and director of HR consultancy 10Eighty.

In her view, there is no quick fix, since entry-level workers are imported to fill low-skilled positions, perpetuating a shortage of training for these roles. According to Sebag-Montefiore, “working conditions in many low-skilled jobs are unpalatable to homegrown workers, further complicating the question of whether we can persuade UK nationals to apply,”

The CIPD Needs to Revamp its Skills Policy:

In response to these findings, the CIPD calls for a major overhaul of skills policy and industrial strategy in order to encourage more companies to recruit, train, and retain a wider range of employees. Ben Willmott, CIPD head of public policy, said the government needs to work more closely with employers to address failing policies like the apprenticeship levy if it wants to support the employment and training of UK-born workers. As part of developing a new approach to industrial strategy, it is necessary to reform skills and other policy areas such as innovation, business support, statutory sick pay, and labor market enforcement.

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Recommendations to the Government From the CIPD:

It recommended the government take the following measures to address skill and labor shortages:

1. More flexible skills and training levy should be introduced in place of the apprenticeship levy;
2. Local enterprise partnerships, growth hubs, and chambers of commerce can provide quality business support for SMEs with regard to people management and development.
3. Skills policy and industrial strategy should be refocused to acknowledge the interdependency of key policy areas, such as skills, innovation, growth/business support, and enforcement of labor laws.

As well as changing the immigration system, Willmott noted that a number of skills and labor shortages can be better addressed. Youth Mobility Scheme should be extended to include EU nationals, and the shortage occupation list should be revised regularly. Adding to this, Dubal said, “The government could create a short-term program to encourage skilled workers. With the most in-demand skills to come out of early retirement.”

Immigration Rules After Brexit:

A Chartered Institute of Personnel Development report revealed on Tuesday that changes to Britain’s immigration system. Since leaving the EU have not encouraged firms to hire and train more UK-based workers.

In January 2021, after Britain officially left the EU, the point-based immigration system was introduced. And the CIPD examined how British companies have adapted to it. In order to fill staff shortages and to attract high-skilled workers, the points-based system was launched.

Despite this, the CIPD stated that workers of a company were not encouraging to hire and train UK workers. As intending by the restrictions made on their ability to hire migrant workers.

The CIP D’s Ben Willmott who is the Head of Public Policy,

That there are some changes to immigration policy that are mean to motivate and encourage employers. To invest more in local workers, but in several instances. This does not appear as one of the plans. Furthermore, he called on the government to take major steps. To make sure that every UK worker is employees and trains.

A National Election is Expecting Next Year,

And Prime Minister Rishi Sunak has to balance boosting the economy amid tight labor market. Conditions with opposition to increased immigration. According to the finance minister, Jeremy Hunt, the government will remain pragmatic. When it comes to immigration as long as interior. Minister Suella Braverman seeks to cut net migration.

It is expecting that net migration numbers will rise to at least 700,000 or more. In the week following Brexit, over double the 335,000 recorded before the referendum.

According to the CIPD Research,

British firms that hired migrants with the points system post-Brexit invested more in recruiting. And developing UK employees than those who did not. Among the reasons why they reported hard-to-fill vacancies more frequently than the survey. Average and were taking a variety of steps. Including upskilling and hiring UK talent, to address this. Were that they were taking a variety of measures.

Additionally,

Disadvantages groups such as parents returning to work and older workers were more likely to be hires by these organizations.