A global pandemic isn’t the only challenge businesses in the UK have been faced with, they’ve also had to overcome the struggles of a new political landscape, as the country officially left the European Union on January 1st of 2021. 

The importance of adapting to new circumstances has never been more relevant than at present day. The United Kingdom has faced its fair share of struggles this past year, however, it’s also been presented with an opportunity to reinvent itself and discover new opportunities in the recruitment sector. 

Impact on recruitment and retention

Despite all of the anxiety and worry surrounding the Brexit impact on recruitment and retention, the CIPD assures that employment levels have steadily risen since the 2016 referendum. Many organisations reported encountering difficulties when it came to recruitment after Brexit. Although the number of jobs has risen, the amount of EU citizens searching for work in the UK has not followed suit. 

This has spiked a national demand for suitable candidates that can fill the void the referendum caused. The CIPS’s Labour Market Outlook report noted that hard-to-fill vaccines increased from 56% in Spring 2017 to 61% in Spring 2019. This same report revealed that many private sector companies increased salaries for both key staff and new employees in order to mitigate recruitment difficulties.  

 The lack of potential candidates combined with a rise in employment creates a perfect climate for recruitment agencies to thrive. Under these circumstances, recruiters have to reassess their strategy and look towards skilled British nationals to fill the gap. 

However, this is not the only way that the Brexit impact on recruitment and retention can be positively perceived. The lack of EU workers means there are more candidates abroad looking for employment, which is another problem that UK recruiters can solve for international clients. 

The UK is the 3rd largest country in the recruitment market, a position that it should always make the most of. UK based recruiters only charge a 15% fee for finding new employees, even whilst sourcing overseas recruitment, which is a considerable discount when compared to recruitment agencies in other European nations, such as Germany, where the fee is around 25%. 

The Brexit impact on recruitment is an opportunity for larger recruitment agencies to take advantage of this notable price difference. Whether recruiters have already developed their export of recruitment services, or they are just beginning to establish this service, it’s an opportunity that should not go unmissed. 

How export invoice finance can help

International invoice finance, or export invoice finance, can help agencies deal with the demand for international recruitment. It’s a short-term finance facility that allows recruitment agencies to sell their receivables, at a discounted price, to a factoring company, in exchange for an advance on the value of their invoice. 

This method of financing is designed to help recruitment agencies deal with large monetary discrepancies and ultimately grow their business during turbulent times. Recruitment invoice finance can help agencies deal with large cash flow disruptions and take advantage of overseas recruitment in two specific ways. 

Firstly, export invoice finance allows UK companies to fund any international invoices they may have. If you are a global recruitment agency that works with several international clients, you can employ export invoice financing to fund outstanding invoices and overseas recruitment.

Secondly, international invoice finance helps UK-based companies with overseas subsidiaries fund any outstanding export invoices that the branch may have. Let’s say you own a recruitment agency in the UK, but you have a subsidiary branch in Germany. You can use recruitment invoice finance to fund any national or international invoices your subsidiary may have. 

Brexit has indeed posed a significant impact on trade between the UK and the EU. Companies now have to consider import checks, extensive paperwork, and many more complex logistics. The asset-based lending sector, including recruitment invoice finance, has proven itself to be a valuable and reliable stream of financial support during these challenging times. 

Now businesses are experiencing delays when receiving and shipping goods or services, so the need to access cash has become more prevalent than ever. The continuous growth of the invoice finance sector is a testament to its utility and desirability. Having the ability to fund your invoices allows you to release working capital, finance your business’s growth and create an extra layer of security amidst uncertain times.