An analysis of the potential impacts of Brexit on the Hospitality Industry in Edinburgh and its EU labour market; an investigation of perceptions of Human Resource managers’

Abstract

This research aim is to analyse the potential impacts of Brexit on the Hospitality industry (HI) in Edinburgh and its EU labour market; an investigation of perceptions of HR managers” This study begins with a chapter based on the review of the literature where the researcher follows the two objectives of this research in order to achieve secondary research approach. Those objectives are: • Objective 1: To provide an overview of the current political situation within the EU with specific reference to EU migration. • Objective 2: To investigate the nature and significance of the EU labour market in the UK and Hospitality industry. This study follows a qualitative research method using semi-structured face-to-face interviews which enabled the researcher to obtain data from a non-probability convenient sample based on seven Human Resource (HR) managers from different hospitality businesses across Edinburgh. The data has then been transcribed and analysed in order to answer the research question and achieve the primary data objectives which are: • Objective 3: To investigate the perceptions of the HR management from Edinburgh’s HI on the potential impact of Brexit on the EU labour market. • Objective 4: To investigate the potential threats of Brexit together with planned strategies of HR managers regarding the hospitality labour market post-Brexit. Thereafter the data obtained from primary research has been reflected and compared with the secondary data findings. Results and key findings: The key findings showcase that the high amount of EU citizens is highly required by the hospitality industry (HI) in UK. With the upcoming Brexit and current low levels of unemployment and significant shortage of skilled staff, HI across the UK and Edinburgh is forced to introduce steps to manage the potential issues. It has been identified that one of the biggest issues and threats identified by the respondents is the alarming future forecast for a significant deficit of workforce caused by lack of EU nationals and the potential closure of single market which currently allows the free movement of services, goods and people. In order to deal with this situation some respondents are already introducing steps and strategies such as promotion of various scholarships and apprenticeships to young people in schools and colleagues, to attract young workforce to the industry straight after leaving school. However, on the other hand, some respondents feel that due to the high level of uncertainty, the best option is to continue their businesses as usual and wait until the decision about Brexit and its future progress is made. It is suggested by BHA (2017) that an analysis of the potential impacts of Brexit will be necessary to identify the weight of it and to appropriately manage future strategies. Whether this impact is going to have predominantly negative or positive effects is still questionable due to the level of uncertainty caused by the long lasting process however, the majority of participants within this study are sceptical about it.