How Yorkshire firms can prepare for immigration law changes - Kathleen O’Donnell

These changes run against the backdrop of the South Yorkshire People Survey (run between August and September 2023), conducted by the three regional Chambers of Commerce — Doncaster, Sheffield and Barnsley & Rotherham — this was used to gauge the views of local business owners on a wide range of different issues.

The outcome, summarised below, highlights the likely impact on the efforts to hire the best people for the available jobs in the region.

Reflecting on the subsequent findings, the CEOs of the three South Yorkshire Chambers issued the following joint statement: “In terms of the labour market — which was a prime area of interest for this questionnaire — recruitment difficulties appear to be easing somewhat as well, which is in line with the national trend. Our results show that 81 per cent of South Yorkshire employers are struggling to recruit at the moment.

“Nevertheless, it’s important to keep in mind that these are just tentative signs of improvement, and that the situation remains far from ideal. It is still the case that one in every five vacancies is taking between three and twelve months to fill, which is a massive hindrance, and the negative repercussions of this are being felt in myriad ways across the region, including: reduced growth; tensions with existing workforces; and rising costs.”

The result of all these provisions is that net migration will reduce over time. Businesses will find that certain roles with lower salaries cannot be sponsored. With recruitment already difficult in the region, this policy is likely to decrease the pool of overseas candidates.

According to Payscale.com, the average salary in Sheffield, South Yorkshire is £29,000.

To highlight industries prevalent in the region that may be affected, according to Total Jobs, the average salary in the construction industry in the South Yorkshire region is £37,500 while the average salary in the manufacturing industry is £32,500. These changes therefore may cause wage rises where there is difficulty in filling certain roles.

This is particularly relevant with South Yorkshire being the first Investment Zone in the UK, 8,000 new jobs are expected to be created in the region and £1.2bn worth of private investment brought in by 2030.

Using government support worth £80m, the new Investment Zone will use the region’s success in advanced manufacturing and will help make South Yorkshire the best place to start, scale or relocate

South Yorkshire’s Mayor Oliver Coppard said: “Our Investment Zone will help put South Yorkshire back where we belong; at the forefront of this country’s manufacturing-led growth.” Businesses will therefore need to consider these changes when hiring for these new roles where they can’t source talent from the local labour market. In preparation for the implementation of these new policies, businesses should take the following steps regarding their foreign workforce and anticipated hiring.

Analyse historical data. How many applications sponsored in the previous year had a salary of under £38,700 and would not have qualified under the new rules? Which roles sponsored previously would no longer qualify?

Headcount planning. What moves can be brought forward before the changes happen?

Workforce planning. What roles can be recruited for from the resident labour market?

Policies. Evaluate whether the mobility or hiring policies need updating with the new salary thresholds?

Collect data. Engage with the Migration Advisory Committee’s consultation for an Immigration Salary Discount List. This is vital to ensure South Yorkshire businesses’ voices are heard – particularly for those companies who have roles that are very difficult to recruit for and where such a salary increase would have a significant business impact.

In addition to this five-point plan aimed at reducing net migration, businesses should also prepare for rule changes related to the widening of scope of activity that can be performed in the UK by those entering as visitors, as well as rights to ‘remote working.’

These are very important changes which will add to the armoury of options available to businesses in the region.

Kathleen O’Donnell is a director at Sheffield-based immigration law firm Fragomen.