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UK – The Adecco Group: A third of businesses have considered automation in response to Brexit skills shortage

27 November 2018

A third, or 34%, of UK managers say that their organisation has considered automating elements of their business in order to tackle skills shortages that might come about because of Brexit, according to a report from The Adecco Group UK and Ireland.

The report found that 71% of managers think the UK’s decision to leave the EU will make skills harder to acquire for organisations operating in Britain. A third (34%) think this regardless of the outcome of Brexit. Yet, one in five (20%) do not plan to employ any strategy to tackle Brexit-related skills shortages.

Alongside implementing technology, those organisations that are considering different strategies to manage potential skills shortages, are thinking about upskilling existing staff (35%) and increasing talent retention (25%).

Alex Fleming, Country Head and President of Staffing and Solutions, the Adecco Group UK and Ireland, commented, “The idea that Brexit will exacerbate the UK’s skills shortage is not a new one, but with one in five businesses not planning to do anything to mitigate this, not all organisations are prepared to deal with this reality. In order to not just succeed but thrive once the UK leaves the EU, every employer needs to have a plan for how they will address current and potential future talent challenges.”

Fleming suggests looking to other countries and how they have tackled skills shortages.

“In Singapore, for example, organisations are being encouraged to create opportunities for older workers, and think about how they can design jobs to help extend their working lives. Alongside making better use of your existing workforce and improving your retention rates, thinking about how to attract potentially untapped sources of talent can help futureproof your organisation in the face of any skills gaps - Brexit related or not,” Fleming said.

After Brexit (33%), skills shortages (27%) are cited as the next most likely factor to hinder Britain’s ability to remain globally competitive. Other concerns include a lack of investment in AI (9%) and a lack of financial investment from global businesses to operate in the UK (9%).

Earlier this week, EU leaders endorsed an agreement on the UK's EU withdrawal agreement and political declaration, which aims to describe what the UK and EU's relationship will be like after the withdrawal, though many aspects of the declaration remain vague and uncertain including those relating to issues that might directly impact the staffing market.