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HR Practices and Brexit
Table of Contents
Abstract
Introduction
1)Corporate Social Responsibility: Strategic Implications
2) Border Agency Regulations
Changes in UK employment Law
3) Challenges Involved In Minimum Pay Legislation, Employment of Agency Workers and Human Rights
Effect of Brexit on Employer and HR Practices
What HR department needs to do
Contribution of the ILO and the UN on Global HR Practices
CONCLUSION
References
Abstract HR Practices and Brexit
The purpose of this report is to analyze the effect of Brexit on the current practices of HR within the organizations operating in UK. The report will also highlight the possible role of ILO and UN during this time of uncertainty that is caused due to UK voting out to be part of European countries. There are a number of low skilled workers who are currently working in the UK and this Brexit means change in their current status and working status in UK. Therefore, in this report, the major challenges that any organization would face as a result of Brexit is highlighted.
Introduction HR Practices and Brexit
The economy of UK has seen a major event recently with the name of Brexit. It is the abbreviation for Britain’s possible withdrawal form the 28 European Union Nations. On the 23rd of July, British voters were asked to vote regarding their decision to be a part of EU or get separated from them. This date was than decided by the British Prime Minister David Cameron. The question that was asked from the voters during this referendum was, should the UK remain a member of EU or it should leave EU. (Vomews.com)
A recent economic event that occurred in UK was Brexit, which have imposed challenges to the portfolio managers in UK. (Lea, 2016). A referendum was conducted in UK, where UK withdrew from European Union. The stock market in UK experienced great fluctuation as a result of the uncertainty caused after the referendums. The FTSE index experienced a sudden fall of 6%. (Eurometer.com) the financial sectors were materially impacted by Brexit. The UK market is expected to remain volatile as a result of Brexit, the major reason being the uncertainty of Britain’s future trading relationship with the EU market. Portfolio managers therefore need to keep a vigilant eye on the market volatility while making decisions regarding their investments.
The significance of this referendum is that it proponents the believe of British citizens that by exiting from thru EU, they will free themselves from the rules that have adverse impact on job creation and allow the country to determine and establish laws and trading partners of their choice rather those which will benefit the UKL citizens. Whereas, the EU advocate favor UK to stay in UK countries as it would help them strengthen their military and security.
Corporate Social Responsibility: Strategic Implications HR Practices and Brexit
There has been a number do researched conducted to study the importance of corporate social responsibility and its implications. According to McWilliams and Siegel (2001), CSR is defined as a situation that any corporate faces in which it goes beyond compliance in order to get engaged in such actions that appear to further increase the social good. These are not in the interest of the firm but in the interest of social welfare. These are generally imposed by the governments an example could be not using chemicals during production which have adverse affects on the environment, going green campaigns adopted by the various firm for the benefit of the society. (William and Siegel, 2001)
The debate is still going on whether there should be implications of CSR or they must be overlooked for the personal interest of the firm. CSR still is a fertile ground for the theory development and empirical analysis. We have seen that CSR has been used in place of business ethics relating to the environmental policy of the organization. It has also been confused as corporate performance in regards to social causes and corporate citizenship. According to Baron (2001), CSR also works as a motivational factor in the organization for the employees to work for the benefit of the society.
The motivation to serve the society for every employee.
There has been some significant strategic value of CSR. It helps the organizations gain that competitive edge when it comes to product differencation and reputation building in the market. (Fibrin and Shanley, 1990). The CSR activities may also include the strategy formulation and in identifying the level of resources that should be devoted to CSR depending on cost and benefit analysis. (McWilliams and Siegal, 2001)
2) Border Agency Regulations
After the referendum for the UK to be a part of EU nations, there have been significant changes in the way the organization used to work before the referendum. The EU’s border regime originated as an international agreement between the five states in 1985, to open borders between these countries. But after Brexit, UK agreed to no longer remain the part of this contract. UK now has specific entitlements under the Treaties and has now gained the right not to be a part of Schenegn acquis. (Ryan, 2016)
According to Ryan (2016), UK will not have any significant advantage in this area. Rather, it will lose its current possibility of anticipating in Frontex operations. This on the other hand can be beneficial if they remained a part of EU.
Changes in UK employment Law HR Practices and Brexit
There could be major changes expected in the UK employment law after the decision of Brexit referendum. The raise of uncertainty is prevailing over the EU rights retained after the exit decision of UK. The Non European national who are currently employed might face some difficulties. (Mead, 2016)
According to Mead, the employees who are working n financial organizations will be affected because of the financial and economical instability other than that, it would not have any significant impact on the employees of other firm. It is because the EU labor acts and regulations are expected to remain the same even after the UK decision to exit from EU countries.
3) Challenges Involved In Minimum Pay Legislation, Employment of Agency Workers and Human Rights
The current practices of HR have made the HR department and the employer responsible for effectively dealing with the employee problems and issues. These are particularly important when it comes to resolving human rights issues that incur in the organization. If any employee is facing problems with harassment and employee right issue.
The management of the organization needs to take measures to eradicate harassment from the organization. The HR department can be made responsible for taking care of the issue and gathering information regarding any such incidence in the office premises. Following steps can be taken by the management:
1. Talk to the affected person directly. It is important to gain the trust of the employee when you intend to solve their issues and problems. The manager can call him or her to his office and counsel him/her. Let him know that you are with him in solving the issue and penalizing the harasser.
2. Find out who the other victims are. There might be some affected people who would not lie to show up; therefore, it is important to conduct thorough investigations to find out if there are others who are facing the same problems and issues.
3. Build a proper reporting and complaining system. There should be a proper system that reinforces the proper reporting of any incidence against the company’s code of conduct. Every individual should be aware of the procedure for filing complaint with confidence.
4. File lawsuit where necessary. The management must ensure filing lawsuit against the culprit to set an example for others.
5. Publicly takes action against the harasser. The management should set an example for other in order to avoid such incidence to happen in future. This can be done by terminating the harasser, penalizing him financially, so that other may know the consequences of conducting such behavior in future.
Effect of Brexit on Employer and HR Practices
According to Davidson Morris (2016), there are approximately 2 million EU workers who are currently employed in Britain and these are affected by the outcome of referendums. The results have caused a question when it comes to the rights if these workers and the legal regulation which may be imposed on them as a result.
The organizations now have to make sure their employees are motivated and not affected much and at the same time the challenge will arrives in ensuring their immigration practices are legal and comply with the rules and laws of the country.
The current immigration rate from European Union to UK workforce is boasting with around 0.5% a year (Davidson, 2016). These workers are the pillars for supporting the UK economy to grow without being pushed up wage growth and inflation, and helping them to keep interest rates low for a long period of time. These positive contributions to the economy will ensure that the government will not make any new changes in the law regarding the employment of EU workers. (Davidson, 2016)
The major changes that are expected for the organization would be the retention and issues of the low skilled migrant workers. The UK policies will now be designed to encourage more high skilled m=labor rather than having to attract low skilled labours. Therefore, the organizations that are depended on low skilled labour and low waged labour such as agriculture, construction and fast food retailer, there will be a definite change in the business.
There is a need for alternative sources and approaches when it comes to the recruitment of these employees. These are to be done carefully to make sure that the employers avoid any non compliance action with regards to immigration and illegal working from the EU workers and the immigrants. ( Anisha, 2016)
Apart from this sector, those sectors which are dependent on technology and high skilled labour, will eventually benefit from this Brexit, at it will encourage more skilled employees, who have expertise in information technology to enter the UK.
What HR department needs to do
The need is to have an open dialogue with the EU workers. This will ensure that the employees feel motivated and supported. The organizations need to offer support to ensure that the employee is clear on their current status in the UK countries after UK leaving Europe. The HR department has to ensure that it takes proper actions to minimize any disruptive condition to occur due to the change in the working conditions of the EU labours.
The organizations need to develop their policies in a way that they shift away from nationality based eligibility towards skills and profession. This will help them address the labor shortage issues that may arise because of UK leaking Europe.
Any organization which heavily relies on the employee from the EU will now have to redefine their recruitment policies and approaches. This needs to carefully done with respect to the immigration laws being followed in the country after Brexit.
The strict immigration policies can cause a big challenge for the employers; they need to make sure they address the issues that may arise because of illegal employment of EU workers and immigrants. They, on the other hand, have to show their commitment to the right to work for all the employees. (Goshi, 2016)
The organizations working in the financial sector will be the most affected because of the Brexit. As the uncertainties in the market will create major shifts in the financial and economic regards…
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