The end of free movement of people from the EU will damage UK businesses and public service delivery unless post Brexit immigration policies take account of the need for both skilled and unskilled labour from the EU. This is a key message in new research from the CIPD, the professional body for HR and people development, and the National Institute of Economic and Social Research (NIESR). It also calls on businesses to broaden their recruitment and people development strategies to ensure they are doing all they can to attract and develop UK born workers, and highlights the need for significant changes to Government skills policy. The study joins a growing chorus of business leaders appealing for a rational approach to Brexit negotiations. Britain’s top business lobby groups have already come together to demand open-ended access to the European single market for as long as it takes to seal a final Brexit deal.

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New research claims that, as a result of the UK’s decision to leave the EU, nearly three-quarters of HR professionals (72 percent) expect the war for talent to intensify, and nearly two-thirds (61 percent) predict further difficulty recruiting senior and skilled employees over the next three years. The latest CIPD/Hays Resourcing and Talent Planning Survey of more than 1,000 HR professionals found that recruitment difficulties are already being reported by three quarters of HR professionals (75 percent), and nearly two-thirds (65 percent) agree that the skills needed for jobs in their organisation are changing. Professionals with leadership (58 percent), digital (54 percent) and commercial awareness skills (51 percent) are most likely to increase in demand over the next 12 months.

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Britain’s new gender pay gap legislation is addressing the wrong issue and so will fail to do what it sets out to do, according to a new report from executive search firm Korn Ferry Hay Group. The firm claims that its analysis of over 570,000 people on its UK database shows that the gender pay gap is “virtually non-existent” when men and women do the same job at the same level in the UK, but that the differences become pronounced in senior and executive arenas. The study backs up data from the Office for National Statistics which recently began publishing details of pay differentials by age and sex and the results are eye opening.  The most startling finding was that women in their 20s and early 30s earn slightly more than men of the same age and in the same job. However, as people get older, the pay gap goes into reverse, with men marginally out earning women at the age of 35, with the pay gap then widening rapidly into early middle age. As we reported earlier this week, the major issues arise both at a senior level of organisations and when women start families and begin paying a ‘motherhood penalty’ in terms of their pay and careers.

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The latest productivity data from the Office for National Statistics shows that UK productivity is up, although the accompanying briefing admits that the data ‘provides little sign of an end to the UK’s productivity puzzle’. According to the report, output per hour increased in the final quarter of 2016 at its fastest rate for more than a year. Quarterly growth of 0.4 percent lifted output per hour 1.2 percent higher than a year ago. While the productivity puzzle is a feature of most developed economies, it is particularly intransigent in the UK, which has a significant gap compared to other nations such as Germany, the US and France. This is despite the fact that Britons spend more time working than those in any comparable nation, except the US.

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