Brexit’s Impact on the Data and Analytics Industry

4 August 2016

In our first issue we look at the impact of Brexit on the Data & Analytics recruitment market place. Moving forward we are going to be producing a monthly newsletter like this to keep candidates and clients updated on relevant industry insight and the latest job openings. If you would like to stay in the loop more regularly you can follow us on LinkedInTwitter and Facebook.

To remind you who we are and what we do, Bodhi Resourcing deliver specialist Data and Analytics recruitment services to clients and candidates. We excel in three different sectors: Data and Technology, Marketing and Insight, and Digital. We work with a wide range of clients such as Blue Chip FTSE 100 corporates through to SMEs and niche technology companies. You can read more about us on our website.

Brexit’s Impact on Data and Analytics

 

In the Data & Analytics job market it will be interesting to see if there is any negative impact. Despite branding Brexit as “one of the biggest acts of self-harm I’ve ever seen” Aaron Auld, CEO of Exasol remains positive that, given the importance of data analytics in organisations of all types, any changes in spending priorities should not affect this industry.

“We have gone through major economic crises and when these things happen there are certain areas where businesses stop spending, but there are certain programmes and projects that you have to carry on with and it’s almost always business-critical processes that can’t be stopped,” he said.

As Aaron highlights, we have been here before when spending has been cut. If we can learn anything from those cuts it’s that investment into the Data and Analytics sector will continue in order to avoid repeating some of the mistakes made during the 2008 recession. At that time some companies stopped investing in their talent pipelines leading to a severe skills shortage. Currently 76% of managers in the technology sector think there is already a shortfall of skills, this number would only grow if recruitment did freeze.

The challenge of sourcing enough skilled candidates to fill the roles is already an issue. With Employment levels hitting 74.4% in the three months before Britain decided to leave the EU – the highest level since records began 45 years ago. And businesses already reporting that access to talent is the number one challenge to growth. To not continue to recruit into business critical area, could be an even bigger risk.

But is the Data and Analytics industry an exception to the rule?

The Commons Science and Technology Committee predicts up to 745,000 new digital jobs will become available and need filling by 2017. Big Data analytics and IoT are were forecast to create 182,000 new UK Jobs by 2020 and there’s no indications that will not happen. The UK’s IT sector is anticipated to become the linchpin of the UK’s future economy and with the UK choosing to move independent of the EU, it only stresses further importance on the IT sector.

There continues to be growth in this sector but also skill shortages, now could be a good time to exploit the market conditions and attract new Data & Analytics talent. 

The Economies Reaction So Far

According to the most recent developments, it appears the UK as a whole is reacting well to Brexit and there is no real need to panic, all the evidence points to the UK still being stable. This is from The Times article (July 20, 2016):

‘Britain’s businesses have taken the Brexit vote in their stride and there are no signs of a sharp economic slowdown, the Bank of England said yesterday. In its first assessment of the impact of the European Union referendum on June 23, the Bank said that most companies were adopting a “business-as-usual” approach and were not cutting back on either investment or hiring. The monthly economic health check said that there was “no clear evidence” of a slowdown in business activity or lending by banks to companies.’

A closer look at the Data and Analytics industry specifically shows that the industry continues to thrive and grow. LinkedIn currently rank “statistical analysis and data mining” as the number one skill you get hired for in today’s market – and that is inclusive of all industries. There continues to be a plethora of Data and Analytics jobs – in fact, there are often more jobs than candidates in this industry due to a lack of talent. That lack of talent is causing problems within the industry already and putting a hold on recruitment may only compound this problem in the future. With so many companies hesistant to recruit and expand, it presents an opportunity for others to get ahead of the game. With less clients competing for the best candidates, now is the time to source and recruit to help take your business to the next level.

The effect of Brexit on candidates

Graduate recruitment plummeted by nearly 25 per cent over a two-year period after the 2008 recession – it looks like the same could happen again. Doing so will only create chasms in companies talent pools. There is already a shortage of skills in areas such as Data Science and because of these talent gaps, and lessons we can learn from 2008, it is important to make sure the same mistakes are not made in the Data and Analytics industry. With 182,000 new UK Jobs by 2020 forecast for the sector, there will be plenty of opportunities for tech savvy candidates to establish and grow a career in this industry.

The tech sector is one that continues to grow and Brexit is unlikely to have any negative implications on that growth. The UK’s tech and IT industry is central to the countries economy – it contributed to 40% of the UK’s economic growth between 2012 and 2015. You could say that because of Brexit, the tech sector needs more investment than ever.

There is certainly an issue with candidate confidence since the Brexit vote. Media pressure more than anything has blunted confidence – but when you look at the facts in this area there can only be positives for those seeking a job in the industry.

With a lack of talent in the industry and the amount of jobs forecast to grow rapidly, there are emerging oppurtunities for candidates to learn and develop their skills in this area.

James Eiloart, Senior Vice President, EMEA at Tableau said: “Data analytics skills are no longer a nice to have in today’s workplace, but a must”. To respond to this, some leading UK Universities will soon offer a Data & Analytics degree – in partnership with the American computer software company, Tableau. The introduction of education in this industry highlights how companies are attempting to fill these gaps in their talent pools. Many of the biggest players in the Data and Analytics market are those that are introducting these new courses. Microsoft are another example, they have recently introduced the world’s first online Data Science degree. The industry is continuing to grow globally, and Brexit is unlikely to effect the UK’s participation in that growth.

Brexit In Conclusion

So the overall message in the wake of Brexit is that there is no real reason to panic – especially if you work in the Data and Analytics industry. As the sector grows it is important that companies continue to invest and source the best talent. If you are a company in the sector there is now potential to gain a competitive advantage for differentiating your recruitment approach to your competitors.This issue is, with confidence currently low, a lot of potential candidates may not be actively seeking a job for fear of security. That’s why you need a pro active partner like Bodhi Resourcing. Our experience in the industry, combined with the strength of our network means we can pro-actively headhunt the best employees who are open to a move but may not be actively looking at this stage.

Get in Touch

If you are a client, we have a huge database of skilled employees and we are ready to find the right employee for you. Call us on 0117 315 5265.