Brexit: A Time Of Opportunity For UK Business & Executive Search? Part Two

Britain’s Core Strengths – A World Of Opportunity

The decision of many multinationals to make long-term investments in the UK is based on rational considerations on future growth. The UK remains an economic powerhouse in the service industries, in addition to possessing many niche high value added (HVA) sectors. These core strengths remain long-term growth drivers of the economy. This is in addition to:

• The large contingent of highly-skilled workers in the software and engineering field, especially attractive to technology companies. The UK has an educated workforce, with 43.5% of 25-64 year-olds holding a tertiary degree, compared to 27.6% in Germany and 35% in France. The rate for London’s is even higher at 60%, giving it the most educated labour force of any European city.
• Executive compensation in the UK which remains extremely attractive for European and international talent. Median basic remuneration for a non-executive chair in the UK was €429,900 in 2014, compared to an EU average of €249,600. Median pay for board directors is also above average, at €76,600 vs. €64,800 for the same year. The UK is now home to 5 of the 10 highest paid executives in Europe.
• Executive compensation in the UK which remains extremely attractive for European and international talent. Median basic remuneration for a non-executive chair in the UK was €429,900 in 2014, compared to an EU average of €249,600. Median pay for board directors is also above average, at €76,600 vs. €64,800 for the same year. The UK is now home to 5 of the 10 highest paid executives in Europe.
• The importance of the UK’s financial sector and in particular its dominant position in non-EU finance. About 41% of all foreign exchange transactions worldwide take place in in London. This is in addition to 62% of all yuan-denominated transactions taking place outside of China. British stock exchanges are the 3rd biggest globally by market capitalisation and London holds 21% share of the world’s hedge fund assets.
• The fact that 27% of the world’s 320 legal jurisdictions use English Common law. More international and commercial arbitrations happen in the UK then all other countries in the world combined. London also remains a leading centre for mining, shipping and Islamic finance. As companies operating in these sectors have their operations almost entirely in non-EU jurisdictions, there is effectively no EU-related investment.
• The UK’s geographical position remains a long-term competitive advantage, with the GMT time-zone bridging the business hours of all continents. London’s Heathrow airport comfortably dominates as Europe’s top aviation hub, with 75 million annual passengers.
• More than 40% of the world’s 250 largest companies make the UK their global headquarters
• 60% of top non-European companies with a headquarters in Europe have chosen London as their base. London has greater pre-eminence in Europe than New York has within North America.

What Brexit Means For Your Executive Search

If you are a company operating in the UK, Brexit has made finding the best executive talent more important than ever, for various reasons:

• You will need to find talent capable of competing in an increasingly globalised economy. The UK is opening up to the world’s non-EU markets, which requires executives to possess cultural knowledge, linguistic capabilities and international work experience. These qualities may not always be present in your existing workforce, which means you have to make your search broader, deeper and more extensive.
• Executives who think creatively and spot opportunities early will give your company a competitive advan- tage during this time of change
• You will have to fulfill new roles that previously may have not existed. This will be connected to sectors in which the UK is strongly investing in. Executives will need to have the flexibility and know-how to face challenges that were not present on the horizon only a few years ago.
• You will have to focus on attracting high-skill workers in a market of increasing competition. When it comes to finding top executives, the verdict is clear: businesses are in Britain for the long-term. That means that businesses will continue to need all the talent they can source, be it from the UK, from Europe or from the rest of the world. Your company will be facing world-class players when competing for the best candidates, and the competition will be global in scale and scope.

Some reports show that some UK companies have decided to wait for the outcome of Brexit before committing to investments and hiring new executives…This may be a big mistake.

Major multinational corporations are increasing their commitment to the UK today, as they recognise the potential for growth and profit has remained unchanged. Any company which decides to postpone hiring or investing in the coming months, may be irreparably putting at risk its competitive position, market strength, and profitability.

On the other hand, you can choose to gain from the solid long-term outlook of the UK, its core strengths and the many new opportunities that will come. To do so, you have to hire the best executive talent – but you have to do it in the most intelligent, thorough and professional way possible.

About Novo Executive Search And Selection

Novo is a leading executive search and selection company. We provide our clients with the most innovative executive search and selection methodologies, industry expertise and networking capabilities to enable them to attract exceptionally talented professionals. Our services provide competitive advantage to clients through executive recruitment and high value human resource consultancy.

Clients retain our services when they are looking to achieve positive change, growth and competitive advantage. Our clients range in scale from start-ups and privately-hold family firms, to the world’s largest corporations. We work extensively across the private sector, public sector, and not-for-profit sector.

>To have a confidential discussion about our services please contact Dale Perrett (Director) dale.perrett@novoexec.com 

0844 241 2064

*Note: All sources for the stats in this post are available in our Brexit whitepaper.