The UK’s immigration policy is harmful to businesses, as a significant majority of organisations still rely on international workers to plug skills gaps, a report has claimed.
Research from employee relocation platform Jobbatical found that international talent is still hugely valued by business leaders, with 58% of organisations with 500 employees or more stating that they rely on migrant workers to solve skills shortages.
Its survey of more than 200 senior business professionals found that 53% still see hiring international workers as a key part of their long-term strategy, despite the tightening of the immigration rules. This rises to 71% in healthcare, 62% in finance and 58% in IT and telecoms.
It was recently reported that the NHS now employs more non-UK nationals than ever before.
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Yet, visa and sponsorship costs (48%) are the biggest barrier holding businesses back from hiring international workers, while 39% lack clarity over processes such as visa requirements and 38% are concerned about legal and regulatory compliance.
The immigration health surcharge, which visa applicants are expected to pay upfront to help fund the NHS, has increased by 66%, while the minimum salary for roles on the immigration salary list, which recently replaced the shortage occupation list, has significantly risen.
Skills gaps are most acute in the tech roles, including cybersecurity, data analysis and artificial intelligence, finds Jobbatical’s report, ‘A case for rethinking skilled immigration in the UK’.
“The current visa process for international workers can often be complex, convoluted and costly, with the UK having one of the most expensive employment visas in the world,” said Karoli Hindriks, CEO of Jobbatical.
“This system simply no longer supports the high-growth, mid-to-large-sized companies that we surveyed and the UK government is shooting itself in the foot by making the skilled worker immigration process so cost-prohibitive. If more companies could afford – and even be incentivised – to bring in skilled international workers, then the government could profit significantly through taxes and more globally competitive local businesses.”
Philip Salter, founder of The Entrepreneurs Network think tank, said: “Technological advancements, the shift towards a knowledge-based economy, and the rise of China and India have made the global business landscape all the more competitive.
“The world is a big place. There will always be more talent outside the UK than in it. Any business leader worthy of their status will want to work with the best and brightest – wherever in the world they happened to have been born.
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“As such, when we think about policy change it’s not a choice between immigration versus education or training the domestic workforce. For the British economy to succeed, we’ll need to make the most of all the talent willing to work in the UK – whether born at home or abroad.”
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