The Brexit fallout: How are sales teams faring?

After years of debate, negotiations and delays, Brexit and its myriad trade rules and regulations came into full effect in the UK back in January 2021. Whilst the true effects of this once-in-a-generation change will likely take years or even decades to be fully realised, we are already seeing some seismic shifts. For example, UK workers are moving locations, developing new skills and their job roles have needed to be redesigned in the wake of the UK’s big decision.

As a country, we have entered uncertain times with the changes brought in by Brexit against the backdrop of the Covid-19 pandemic. This is going to mean a huge difference for salespeople and organisations as sales strategies and tactics are adapted and buyer behaviors are forced to change. Here, we’re going to look at the implications that Brexit will have on salespeople and teams across the UK: 

The implications for sales post-Brexit

One of the key implications for salespeople and teams in a post-Brexit world is that many are now losing loyal customers. Pre-Brexit, goods sold from the UK to the EU did not count as exports but now they do. That means UK VAT is not charged at the point of sale, but they will be subject to import VAT. This has led to a shift for many EU businesses now looking to locally source products and services they might have once been bought from the UK. 

It’s also worth noting that things are no different for EU businesses selling to UK customers. EU businesses are now required to directly pay UK sales tax, or VAT, on sales under £135. They also have to register and file quarterly declarations with the UK authorities. As a result of this, many EU-based small businesses have even entirely stopped selling to their customers in the UK.

Official UK figures from the Office for National Statistics in March 2021 showed that the UK recorded a huge fall in trade with the EU in January as businesses across the country struggled with these post-Brexit rule changes. This subsequently led to a decrease in jobs in the sales export sector as trade between the UK and EU hit an all-time low. However, in recent months, British goods exported to the EU rose to their highest since October 2019, reversing the slump indicated at the start of 2021. Imports from the EU have also risen after the initial decline at the start of the year, when Covid-19 disrupted traffic across the English Channel, although they remain slightly below imports from the rest of the world. 

The impact on sales teams 

One of the key concerns we are seeing with the companies we recruit for is that since Brexit they have been fewer migrants moving to the UK for work and less movement across Europe of top talent. For some companies, this has led to a fear that they won’t be able to access the right workforce they need moving forward. 

Due to this lack of movement and at a time where rules, regulation and restrictions are continuing to change – you want to make sure you have top talent on your sales team. If you already have a skilled sales team and employees who have been trained to deal with the new trade regulations in place for Brexit, then you want to keep these employees in the business long term.

Businesses need to develop clear strategies around how they are going to source, upskill, and retain their best people to help their business navigate these challenging times. Effective retention strategies will help you keep your staff turnover low, attract quality employees, help support productivity and boost employee engagement too. Some of the best strategies to successfully retain top talent include: 

1. Giving staff ownership and autonomy 
2. Gauging clear career paths and choices for your salespeople 
3. Finding out exactly what your employees want, and how to adapt your business to accommodate these factors. 

In an uncertain economic climate, it is also vital that businesses can rely on their sales team to continually drive leads and revenue. Giving your sales team the chance to upskill, train and develop in new areas can make all the difference when it comes to approaching challenges and developments like Brexit. You should also consider the wellbeing of your team. A mindful, healthy sales team that feels empowered and trusted to develop will be more productive and achieve better results for the entire team.

 
What's next?
There are many other requirements that affect specific industries post-Brexit and it’s possible there will be more changes in the future. To make sure you are completely up to date, always check the official government guidelines and use the Brexit checker for personalised guidance for your business.

Discover more insights and advice from Michael Page Sales, and contact our expert consultants today to help find the right people for your business.