Assignment One

MAN-3353 SPRING 2020

Blackrock Inc. the largest asset manager announced that it was going to be setting up a

new office in Budapest, with 500 open positions. The company received a magnitude of

applications from a surprising and unlikely place, London. At a get together hosted by Blackrock

Melanie Seymour, the managing director for the Budapest office stated that so many Hungarian

senior investment bankers and top-earning Hungarian employees attended that the afterwork

event ran late into the evening. While the United Kingdom is transitioning to an Independent

country away from the European Union, London braces for workers to leave as Central and

Eastern Europe are preparing for an influx of businesses and employees who want to remain with

the European Union.

According to the Association of Business Leaders, Business-Service hubs where global

companies headquartered in the West are planning to move East. This move was sparked by the

uncertainty from the UK’s split from the European Union, many companies want to remain

within the EU’s policies, and have decided to leave the UK moving east. The companies are

cutting employees in the UK and moving their operations to the countries still involved with the

EU, like Poland, Czech Republic, and Romania.

Discussion

After years of what experts called Brain Drain, central and east European businesses are

preparing for an influx of business and employee growth. This is due in part to the growth of

legal, financial, development, and research jobs being moved to this region. According to the text

the Association of Business leaders these jobs will triple by 2025 in business service centers.

These service centers are the route of businesses wanting to move east, by starting to expand into
more than just hubs for Technical support, Human Resources, and Accounting. With the

expansion of these business hubs into different departments they have increased the productivity

of workers and with higher productivity it increases the pay that workers can receive. Thus,

bringing workers back home to Central and Eastern Europe causing a reverse Brain Drain.

As potential employees look for work most workers in Eastern Europe started to move to

London to find work matching their degrees and interest. When someone moves from their home

country to a new one for work there is a cross in cultural experience. While most employees do

not look for work outside of their home country when they do, they must try to find a company

that matches their moral compass. It can be difficult for employees to adjust with cultural

differences in their new country of work such as language barriers, customs, ethics, and morals.

Workers also have to deal with potential racism from their country of work, in todays culture in

America for example American born citizens blame immigrants for taking the jobs of

Americans. Most workers just want to be close to home so that they are not far from their

culture and family. While these are just a few items that impact an employee’s decision to stay in

their home country for work there are many more to be discussed.

The managers from the East European countries can retain the Top talent by offering

better pay and incentives to the employees. In order for any business to obtain a competitive

advantage over competitors is to offer employees the benefits they desire from the company in

which they work. Another way in which Eastern European countries can retain top talent is by

enhancing employee development programs. In most companies the retention rate is better when

employees feel as though their hard work and dedication are appreciated by their supervisors. In

order for the EEC to do this they need to implement a training structure that allows employees to

develop into areas that can be beneficial for the company and provide more development
opportunities for the employees along the way. The final way that the companies can retain their

top talent employees is by offering them a better work life balance. Most employees feel as

though their job takes up the majority of their lives and when companies offer a more developed

and independent career employees are happier and more productive in their work. By the EEC

offering employees a more flexible schedule, they can also recruit more talented employees by

offering a competitive edge over other companies making their place of business more appealing

to potential employees.

While it is still to early to predict the impact that Brexit will have on global business, the

UK can start to plan businesses that will be essential to their already established market. In order

to create employment opportunities the UK can look to the citizens who are currently working

for the European Union and help develop jobs relating to the work their citizens are doing for the

EU currently, offering assistance from the UK government in this time of transition to businesses

in need. By using their own citizens with EU knowledge provides an advantage offing support to

companies and the government in helping provide products and knowledge that could potentially

be scarce during the transition from an EU member to an Independent governing country. In

order for this to be an advantage companies are going to need to join together and those that are

financially or not operating at full efficiency take the recommendations given by the official with

the EU experience. While the UK cannot predict the impact of their exit from the EU, they can

use it to gain a competitive advantage by composing sustainable practices offering a stable and

attractive work environment.

Debriefing

While we do not know the impact of Brexit will be for the UK and their businesses what

we do know for this case study is that more companies are wanting to remain within the
European Union. With the UK’s exit many companies are going east opening offices in countries

that have the lowest joblessness rate, giving the UK a competitive advantage by allowing them to

attract workers who could potentially not find a job in their home country. I believe that the

impacts of Brexit will cause financial issues for the UK during the first few years of the

separation, and their workforce will slim down but as more and more companies move East they

will be able to attract workers by allowing them a wider range of careers. No matter why a

company moves the impact is negative for the UK and their economy. I believe that a large

number of immigrant workers in the UK will be returning home in order to be closer to family as

they only left because there was no where for these workers to put their degrees and talents to

use in their home country.