As we all know by now, in a referendum held on 23 June 2016, the United Kingdom voted (by 52% to 48%) to leave the European Union. A lot has happened since the result was announced: the British Prime Minister resigned; sterling took a dive (but is now recovering); and there was talk that some UK-based multinationals companies would leave the country.
Things have settled down somewhat since then. As far as exiting the EU is concerned, it will be for the soon-to-be-elected British Prime Minister to invoke the relevant legislation that will get things going. This will take some months to happen.
So how is your company handling Brexit? Of course, for multinationals based in the United Kingdom, they will have to consider whether to stay put, or up sticks and leave. However, that will depend on the terms of the deal that Britain is able to negotiate with the European Union. If the deal ensures Britain’s continued access to the Common Market, then that would ease a lot of fears.
However, a lot of companies outside Britain also have a stake in Brexit. Many of those doing business with Britain will be rightly concerned about how things will go with the negotiations.
If Britain remains outside the European Union, and without access to preferential conditions, there could be an imposition of customs tariffs, and other such barriers to trade. Right now, this looks unlikely, but the situation is far from clear.
And what about immigration? A lot of EU nationals currently live and work in Britain. Similarly, a lot of British citizens live and work elsewhere in the European Union. With Britain being part of the European Union, such people are not required to apply for residence permits or work permits. All this could change if Britain leaves the European Union. It all depends on what deal is negotiated between Britain and the European Union.
If your company is situated anywhere in the European Union, you are very likely affected by Brexit. This could be because you are based in Britain, and benefiting from EU-related benefits, such as trading with other EU nations without customs tariffs being imposed. Or perhaps you are employing staff from other EU nations without having to apply for work permits for them. If you are based outside Britain, but in the European Union, you might be thinking now about how your business dealings with British customers will need to be restructured. You might also be thinking about your British members of staff. Currently, they work for you without the need for you to apply for work permits for them. Maybe that will change; we don’t know yet.
By now, you will have outlined a Brexit strategy; for dealing with your employees and clients on the other side of the Brexit divide. This is very important, and, even though we don’t yet know how the Brexit deal will look, there are models out there that could give us some indication. For example, we could look at the different models used by Switzerland and Norway in their dealings with the European Union. These could give indications that could, at the very least, provide the outlines for a strategy.
As well as outlining your strategy, it is important to determine how much of that strategy it would be prudent to communicate. And to whom. While a good measure of discretion is advised, there is also need to provide relevant information. Especially to key stakeholders who are looking to you for direction. How are you addressing the need for information within your company? What do you say to your employees who are affected by Brexit? And as for your customers, how much to tell them?
These key questions will become even more pertinent as the weeks go by. The important thing to consider is the stability of your business. That is the impression you want to reinforce. Everything you communicate must give that assurance. In uncertain times such as these, your employees and customers will thank you for it.