The report, Navigating Brexit: The Migration Minefield from EEF and global law firm Squire Patton Boggs, also found that the slump in job applications from the EU has slowed since last year, but 17% of companies saw a drop in applications from European citizens.
In addition, a further 13% of manufacturers still report an increase in EU workers leaving their businesses, with many returning to the EU permanently – leaving companies struggling to recruit suitably skilled staff in the UK.
EEF and Squire Patton Boggs are now calling on the government to move swiftly to give companies and their workforce increased clarity over the future of EU citizens working in the UK to stem the outward flow.
The report says that proper guidance for EU workers seeking settled status would do much to mitigate the issue problem. Nearly 40% of manufacturers need support in understanding the ways to support EU employees to gain residency/settled status and 68% want guidance on what the changes after March 2019 will mean for employers and their EU employees
In an attempt to stem the growing skills issue, companies are also taking steps to hold onto older workers with specialist skills, with 16% having implemented or are currently implementing such policies.
Nearly half of those manufacturers questioned are also increasing training programmes for all existing employees with 37% increasing apprenticeship and/or graduate recruitment programmes, while improving pay and benefits packages is the route taken by 20% of companies in order to attract and retain staff for longer and 21% are accelerating plans for automation.
Tim Thomas, director of Skills and Employment Policy at EEF, said: “Skills shortages are endemic in manufacturing and engineering and companies are becoming increasingly concerned about their ability to access the skills they need post-Brexit. While the slump in job applications from the EU has slowed, there is still much to be done to make sure UK businesses are still able to attract the very best talent from Europe over the coming months as we proceed towards our exit from the EU as well as retaining that talent after Britain leaves the EU.”
The report adds that posting workers to Europe, even for a short time, will become more complex after March next year, adding that this may come as a shock to the almost three-quarters (71%) of manufacturers regularly sending employees to other EU member states.
Thomas added: “Many companies do not realise that sending a member of staff to the EU to attend a conference or trade show involves the same posting mechanism as sending someone to the EU for a month or more. The government must deliver a good trade deal which lets businesses travel into the EU for short term posting as a matter of urgency. This is particularly important in terms of servicing and repair work which are tied into most contracts as well as having the ability to attend trade fairs and market new products and services to sell into EU markets.”
