With much of the
debate in the EU referendum campaign revolving around economics, PSD has been
considering what a Brexit would mean for our clients’ businesses. Whilst no one
can fully predict the impact of leaving the EU, the effects on business,
employment and wage inflation are well worth considering.
This spring we undertook a UK wide survey of thousands of industry
leaders in order to understand their views on the effect of a possible Brexit
on their business. We were particularly keen to explore how our clients believe
a potential exit from the EU will affect their business expansion and hiring
plans, and crucially which way they would vote.
|Summary of the questions & responses|| || || |
|If the UK leaves the EU what is the likelihood of you
expanding your business in the UK||Increased|
the UK leaves the EU do you consider wage inflation will be||Increased|
|If the UK leaves the EU do
you consider employment legislation will be||More complex|
the UK leaves the EU do you consider that hiring staff for your business will
|On balance would you||Stay in the EU|
Business leaders are voting to stay!
Given the choice
to leave or stay in the European Union, overwhelmingly nearly 70% of
respondents said they would choose to stay in the EU. This is contrary to high
profile polls across broadcasting networks, which show a closer split. Opinions
varied according to the sector - 90% of leaders in the Hospitality &
Leisure sector said that they would vote against an exit, whereas only 62% of
respondents from the Property & Construction sector said they would vote to
stay in Europe.
If we leave the EU, will you still expand your
If Britain was no longer part of the EU, 66% of business
leaders feel the likelihood of them expanding their business will not change.
However, nearly 30% believed that there would be a decrease in business
expansion. Some sectors, such as Banking & Financial Services, expressed
more concern, with 46% feeling that there would be a decrease; 48% of
Technology leaders mirrored this sentiment.
The effect of Brexit on hiring people.
Within the Hospitality & Leisure sector, 70% of business leaders feel it
will be harder to hire staff if Britain were to leave the EU. However, 56% of
respondents from the Property & Construction sector don't feel there will be