The additional cost and bureaucracy of the Government’s new points-based immigration system should be of great concern to employers, an expert has warned.
According to Gerwyn Davies, Senior Labour Market Adviser at the Chartered Institute of Personnel and Development (CIPD), most organisations are “completely unprepared” for the new immigration regime.
The warning comes after a study found that some 70 per cent of the existing EU workforce would not meet immigration requirements under the new scheme.
Responding to the announcement of the new immigration plans, Mr Davies said employers “need to get up to speed with the new system quickly” and “adapt their workforce planning strategy accordingly”, which includes preparing for additional cost and bureaucracy.
Another significant concern is how employers with large numbers of low-paid staff will navigate the minimum salary threshold of £25,600.
Despite the Government lowering the threshold in response to concerns, employers will only be able to access low-paid staff through the dependents of skilled migrants and the Youth Mobility Scheme.
“The new migration restrictions should enable many organisations to continue to meet their skills needs, albeit with more bureaucracy and cost. On the plus side, employers will be particularly relieved to see the government agree to a lower minimum salary threshold of £25,600 and an even lower threshold for shortage occupations,” said Mr Davies.
“All organisations will also have to ensure they maximise their ability to recruit, train and retain a more diverse UK-born workforce, which will mean investing more in how they manage and develop their people.”
The view of the CIPD reflects the Home Office’s new outlook to recruitment, which stated this week that “employers need to adjust”, suggesting that investing in staff retention, productivity, technology and automation would help employers “move away from a reliance on the immigration system”.
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