A third of those polled (32%) said hiring would continue at the same pace, but a quarter (24%) said they would put a freeze on recruitment, and 5% would make redundancies 1 in 5 (22%) were considering moving some of their operations outside of the UK; only 1% said they would bring operations back.
The IoD, which did not campaign during the referendum, received results from 1,092 members between 24– 26 June.
Simon Walker, director general of the IoD, said: “Businesses will be busy working out how they are going to adapt and succeed after the referendum result. But we can’t sugar-coat this; many of our members are feeling anxious. A majority of business leaders think the vote for Brexit is bad for them, and as a result plans for investment and hiring are being put on hold or scaled back.”
More than a third (36%) of IoD members said the outcome of last Thursday’s vote would cause them to cut investment in their business, against 1 in 10 (9%) who said they would increase investment. Just under half (44%) said it would not change their investment plans.
Meanwhile, CBI director-general, Carolyn Fairbairn, has laid out businesses’ priorities following the outcome of the EU referendum.
She said business leaders were determined to work with government to create the right conditions and face the upcoming challenges with confidence and resilience to achieve the best possible outcomes for the country.
The CBI is also writing to the Prime Minister, the Department for Business, Innovation and Skills and the Treasury outlining companies’ top priorities to minimise the uncertainties which could affect the UK’s future economic growth and prosperity.
Fairbairn said: “The first part of the plan must be to get strong, calm and decisive leadership in place as soon as possible. Never has there been a more important time to put the interests of the country ahead of party politics. Businesses welcome the Prime Minister’s announcement of a delay in triggering Article 50 to create breathing space, but need rapid clarity on who is making the decisions.
“Second, we must agree the principles that should underpin our new relationship with Europe and the rest of the world. At the highest level, the government should resolve publicly to preserve the openness of the UK’s economy, one of its greatest strengths.
“This means seeking to protect tariff and barrier-free access to the Single Market, ensuring companies are able to continue to attract the best people to the UK with the skills we need, while recognising public concerns about immigration. And, it means setting out clearly how the UK will agree the right international trade deals with the wider world.
“The third action we must take is to forge close and deep collaboration between business of all sizes across the UK and the government to help shape our future economic relationships. The CBI and business leaders across the UK stand ready to work with the new leaders of our country to help chart the future course, starting as soon as practically possible.”
GMB General Secretary Tim Roache called for urgent government action to protect jobs in the wake of the Brexit vote, as well as an immediate commitment from government that it will act to protect the rights of working people.
Roache said: “We’re in uncharted waters. The government needs to act straight away to secure jobs and keep the economy moving – too many working people are still carrying the can for the last economic crash, they can ill afford another one.
“What happens next cannot be the preserve of a government elected with 37% of the vote or potentially a Prime Minister who was never elected at all. The British people have spoken, many of them frustrated with business as usual, choosing to leave the EU because of the impacts of the flexible labour market and the pursuit of free trade above all else.
“Our place in the world cannot be one based on a Tory Party free-for-all, free market philosophy. A race to the bottom which prioritises the removal of trade barriers and the flexible labour market above all else will fail working people and the very voters who made their decision.”
