The Impact of Brexit on Electrolux Company

Electrolux AB is a Swedish transnational company that focuses on manufacturing of home appliances. It transacts a wide range of brands such as vacuum cleaners and major appliances meant for consumer use (Electrolux 12). The Brexit has presented a wide variety of threats and opportunities to multinational companies such as Electrolux. Precisely, Brexit has become a source of uncertainty for investors. The aggravated nervousness forces investors to evade investing their resources in the long-term project because of the risks associated with the market (Brooks 1). In this regard, it tends to influence the human resource management in companies such as Electrolux because of the change in the labor laws and practices.

Electrolux Company will experience the challenge of reduced human resources in its factories in the UK because lesser number of EU migrants would be willing to work in the country. Therefore, the company is likely to suffer from shortages of skills and labor especially in the manufacturing centers in the UK (Brooks 1). Studies have pointed to the fact that 25 percent of human resources in multinational firms in the UK were considering relocating from the UK or leaving the firm in 2017. Moreover, statistics have highlighted that the proportion of non-UK national from the EU in occupation have reduced in the recent period. Subsequently, it has established substantial recruitment issues in companies such as Electrolux because they have traditionally depended on non-UK labor to meet their labor demands. For instance, in 2016, the number of non-UK nationals reduced from 60,000 to 30,000 between June and September of the same year (CIPD 4).

The labor and skills shortages are likely to increase in the future hence most of the vacancies can be left unoccupied which would affect the output progress in the UK in the future. The EU employees are important to the stability of the HR sector for multinational companies such as Electrolux because they serve as a critical reservoir of unskilled, semi-skilled, and skilled labor and without them the cost of labor would increase (Brooks 1). Moreover, Brexit will affect the ability of the enticing and retaining human resources with the top skills. Therefore, there will be higher competition for well-qualified and skilled talent. Such firms will also experience challenges in an attempt to hire operational staff. It is recommended that companies should establish strategies to reduce attrition of the best talents from their organizations by introducing better packages than its competitors (Electrolux 12).

On the other hand, Brexit could also present some opportunities to multinational companies such as Electrolux. The existing market may provide opportunities for investors with the emotional resilience to continue with investment via the enduring turmoil. When the period is characterized by uncertainty and stress, investors such as in Electrolux Company may concentrate on the opportunities in the long-term value (Brooks 1). For instance, Electrolux will invest in development of staff in the long-term who have the skills and competences to handle any kind of work. For instance, the company will pay close attention to training the HR in order to benefit the firm in the long-term. Moreover, the Electrolux will concentrate in retaining the best talent in the company who has the capacity to meet the need of the business and subsequently spur growth. In addition, Brexit means that most of the organizations established in the EU will have significant talent pool from where companies such as Electrolux can hire the best. HR department and recruiters will have an opportunity to select skilled labor from UK nationals working within the EU. Therefore, companies such as Electrolux should concentrate on strategies that prioritize on workforce planning and guarantee that the firm has the resources required to effectively negotiate the impending transformations (CIPD 5).

Work cited

Brooks, Peter. "Brexit — An Opportunity As Well As A Threat | Financial Times". Ft.Com, 2016, https://www.ft.com/content/06fc97d0-41cf-11e6-9b66-0712b3873ae1. Accessed 4 Dec 2018.

CIPD. "Preparing For Brexit Through Workforce Planning". Cipd.Co.Uk, 2018, https://www.cipd.co.uk/Images/brexit-workforce-planning-guide_tcm18-38797.pdf. Accessed 4 Dec 2018.

Electrolux. "Shape Living For The Better: Electrolux Annual Report 2017". 1, vol 23, 2017, Accessed 4 Dec 2018.