brexit compass survey: creating hr readiness and employee resilience

Results Overview : July 2016

BREXIT

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Brexit Compass Survey: Creating HR Readiness and

Employee Resilience

2

Brexit’s impact one month on

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Brexit … one month on

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Nearly two thirds expect their business in the UK will be significantly affected by

Brexit

Note: Very or extremely significant impact

Source: WTW Brexit Compass Survey (July 2016)

UNITED KINGDOM EUROPE

What do you think the impact of Brexit will be? Percentage significant

Your workforce in Europe (ex UK)

39%

Your business in

Europe (ex UK)

55%

Your business

in the UK

66%

Your workforce in the UK

63%



Businesses seeing threat

To what extent does your organisation view Brexit as an opportunity or a threat?

OPPORTUNITY

THREAT

NEUTRAL


16%

33%51%

United Kingdom

15%

35%50%

Overall

15%

35%50%

Europe (excl. UK)


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Businesses seeing threat, but unsure how to act

Is your organisation going to “wait and see” or “take action” as a result of Brexit?


TAKE ACTION

NEUTRAL

WAIT AND SEE

29%

17%54%

United Kingdom

26%

18%56%

Overall

17%

20% 63%

Europe (excl. UK)

Whilst employers foresee a significant impact


They have yet to begin a comprehensive assessment of Brexit’s effects


Don’t know and not applicable responses removed

What levels of assessment has your organisation undertaken with respect to Brexit?

Broad

consideration

of the implications

78% 60% 24%

High level

assessment

in key areas

33%

Scenario

planning

in one or more

areas

Detailed impact

assessment

in key areas

By industry

23%

32%

20%

45%

Manufacturing and

industrial

Professional and

Business Services,

Publishing

Technology, media

and telecoms

Financial services


Preparing for change

Changing HR priorities


Workforce planning and talent retention have become much more important

As a consequence of Brexit, are the following people issues becoming more or less of a

priority for your organisation? Percentage more or much more


United

Kingdom

Europe

(excl. UK)

General workforce planning

(location, number, type of staff) 51% 38%

Mobility of staff between UK and EU

Expatriate arrangements

Attraction and retention of critical skills

Attraction and retention of other staff

76% 77%

Cost control/efficiency measures

Financing of pension schemes

Employee incentive plans49% 44%

Employee attitudes and engagement 49% 23%

Nearly half of companies plan to assess their operating model


ORGANISATION CHANGE


Has your organisation completed any of the following HR related activities in response to

Brexit? Or do you plan to do so in the next three months?

18%

15%

19%

32%

32%

22%

0% 20% 40% 60% 80% 100%

MODEL & STRUCTUREAssessment of the current

operating model and

organisation structure

TRANSACTION DELAYAssessment of the human

capital implications of disruptions

or delay to corporate transactions

HR BREXIT TEAMCreation of HR Brexit team

responsible for planning and

assessing human capital impact

In progress or planned

in next 3 monthsConsidering

Not planning nor

considering

Brexit ready


Organisation change: Action considerations

1. Stay close to business to understand current/ potential

impact on business operations, model and structure

Stay close to business as

impacts become clearer

2. Be involved with business impact assessments and

plans

Work with business as any

changes developed

3. Collate HR data, run HR impact assessments and

scenarios to complement business analyses

Develop complementary HR

plans

4. Health check business ability to lead and manage

through Brexit changes

Address HR blockers to

effective change

5. Implement short-term mitigating actions e.g. manager

assessment/ development

• Update HR strategic plans and

scorecard

Initial focus on understanding the number of affected workers


Next step is to examine the ramifications of any changes to the mobility of labour

TALENT




43%

38%

21%

10%

27%

25%

42%

13%

0% 20% 40% 60% 80% 100%

EUROPEANS IN UKAudit of EU employees working

in your organisation in the UK

BRITISH IN EUAudit of UK employees working

in your organisation in the EU

LABOUR MOVEMENTAssessment of possible effects

due to end in free movement of

labour

HIRING FREEZEImplementation off a hiring

freeze



Not planning nor

considering

Brexit ready


Workforce and talent: Action considerations

1. Identify affected staff and business critical roles Detailed workforce planning

2. Confirm which roles are location dependent Development and delivery of

critical skills plans

3. Assess workforce implications across the range of

Brexit/ business scenarios

Development and delivery of

workforce plans

4. Be ready to respond to any financial pressures with

easy access to hiring, staffing and costs data

Consider alternative work

models to provide greater

flexibility on location

5. Audit of talent pipeline and succession planning in

readiness for change

Limited movement on pay … yet


Greater concern on the impact on pension schemes

TOTAL REWARDS




Financing of

company pension

schemes is a

more important

issue as a result

of Brexit

27%22%

6%

37%

17%

0% 20% 40% 60% 80% 100%

PENSIONSAssessment of the impact of

financial volatility on pension

schemes

SALARY CHANGEImplementation of a salary

increase, freeze or review of

salary increase budgets



Not planning nor

considering

Brexit ready


Total rewards: Action considerations

1. Consider retention measures for critical, EU and expat

talent

Focus more Reward spend on

critical talent

2. Assess impact on outstanding annual and LTI awards

and future awards

Prepare for renewed focus on

UK exec/ equal pay agenda

4. Model impact on UK pensions under broad range of

economic scenarios

Assess Brexit impact on

pension strategy, funding and

investment implications

3. Model salary planning under broad range of economic

scenarios

Revise regional benchmarks

5. Analyse total reward cost vs. engagement impact in

readiness to manage cost with minimal impact

Establish long-term EVP

Half of companies have communicated to UK staff around Brexit


Fewer have longer-term communications plans in place


Have you released or do you plan to release in the next 30 days any specific formal

communications to any of the following groups in response to Brexit?

ENGAGEMENT & COMMS

We have comprehensive employee communication plans in place39% agree or strongly agree

47% 49%

34%

26%

17% 15%

26%

All staff UK staff EU nationalsworking in the

UK

UK nationalsworking in the

EU

Critical skillsgroups

Members ofpensionschemes

Customersand clients

High levels of employee concern require a thoughtful approach to

engagement and communication


ENGAGEMENT & COMMS

44% 65% 53% 42%

Our employees are

worried about their job

security

Our EU employees

located in the UK are

worried about their

place in the

organisation

Our UK employees

located in another EU

market are worried

about their place in

the organisation

Our employees are

worried about their

pension savings and

personal finances


Don’t know and not applicable responses removed

Percentage agree or strongly agree

Brexit ready


Engagement and communications: Actions considerations

1. Active listening with EU, expat and critical skills groups

to establish actual and specific perceptions and concerns

Adapt employee listening

strategy to navigate next 2

years

2. Communicate to dispel myths and help identify known

from unknown. Re-state the current business objectives

Outline any potential

implications as become known

3. Communicate to UK pension members on key pension

considerations in light of Brexit

Further pension-specific

communications as required

4. Establish a Brexit communication and change plan Integrate Brexit comms with

overall business

communication plans

HR Readiness


Is HR ready for change?


How likely is it that the barriers below will prevent your HR function from responding effectively

to the changes that will happen as a result of Brexit?

Lack of clarity on the

UK position

Lack of business

clarity

Insufficient budgets

Lack of time

Lack of expertise

Lack of data 25%

28%

28%

28%

37%

63%

0% 20% 40% 60% 80% 100%

Our HR strategy is

fit for purpose

54%

Readiness of your HR

arrangements to deal with the

HR and people changes you

can expect?

Our HR technology is fit for

purpose

51%Percentage agree or strongly agreePercentage likely or very likely

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Also of interest

• The UK referendum on EU membership

• The impact of Brexit on Human Resources and its implications for changes to regulations,

employment policies and benefits programmes

• Communication and Change Management

• Rewards

• Talent Management

• Employee Insights

Willis Towers Watson Solutions

Related Content

https://www.willistowerswatson.com/en/insights/2016/06/the-eu-referendum?utm_source=SocialMedia&utm_medium=SlideShare&utm_content=GB-Brexit&utm_campaign=XLOB

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https://www.towerswatson.com/en/Services/our-solutions/employee-insights

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