Empowering Refugee Talent for Inclusive Business Growth

Integrating refugee talent into the workforce fosters economic growth and addresses labor shortages. Businesses benefit from diverse skills, increased retention, and engagement, while refugees gain stability and community integration, creating a supportive and inclusive environment for all.

Adecco Research and Insights

How Can Refugee Talent Enhance Business Growth?

June 2024

Historically, refugees have made substantial cultural, social, and economic contributions, fostering growth in their adopted homelands. In recent years, their strategic integration has spurred growth and helped mitigate long-standing challenges. It is essential, however, to understand that successful integration requires proactive intervention, strategy, and empathy. As Norwegian-Bosnian author and war refugee from 1993, Amela Koluder, aptly puts it, “A refugee is someone who survived and who can create the future.”

June 2024

Key takeaways

Over 132,000 individuals have been granted refugee protection in the UK the past three years alone. More than half of them had to wait more than six months.
With sought-after skills, they belong to a productive age group and demonstrate remarkable adaptability and resilience.
Their integration can alleviate talent shortages in critical sectors, help to tackle the UK’s ageing workforce issue and bolster the nation’s economy.
Businesses that hire refugees can benefit from increased retention and engagement, with an enriched, diverse workforce.
Delays in status decision assessments, public misconceptions, and refugees’ lack of familiarity and networking in their new environment are key barriers impeding their integration.
Hiring refugees is mutually beneficial, requiring strategic partnerships with specialised organisations, customised training, and an inclusive mindset beyond traditional recruitment approaches.
Employment is a sustainable way to help refugees integrate into their new host communities as refugees learn language and local customs more quickly on the job, earn to provide for their families, and build community through work.

Introduction

UK asylum policies, though designed to streamline processes, often create significant hurdles for displaced individuals entering the country. Asylum seekers meeting the criteria for refugee status typically wait over 12 months for a decision, delaying their access to employment. This delay incurs an estimated annual cost of £108.8 million, highlighting both economic and humanitarian concerns.¹

Since 2021, the UK has granted refugee protection to over 132,000 people, including dependants, according to Home Office data from March 2024. With a backlog of past applications and ongoing geopolitical events, this number is expected to rise.² This reality, coupled with the evident benefits refugee talent can bring to the UK labour market and economy, underscores the urgent need for effective integration and employment foundations.

The pressing question for businesses, government, and society is: How do we facilitate the successful integration of refugees? Providing structured access to training and employment opportunities is crucial for enhancing long-term integration for both individuals and the economy. Employers and government entities play a vital role in addressing risks and creating a supportive environment for refugee employment. By adopting strategic measures and fostering collaboration, we can effectively dismantle barriers and build a more inclusive future.

Source: Home Office

NOTE: For the purpose of this article, we adhere to the definition provided by the United Nations for a refugee: a person who is unable or unwilling to return to their country of origin due to a well-founded fear of persecution based on race, religion, nationality, membership in a particular social group, or political opinion.

Can Refugee Talent Address Domestic Labour Market Challenges?

The short answer is yes. Contrary to public misconceptions shaped by the difficult circumstances refugees face, refugees can significantly contribute to addressing domestic issues. Boosting candidate availability in sectors suffering from talent scarcity, forming a determined and resilient workforce, and contributing to the UK economy, refugee talent can play a pivotal role in tackling domestic challenges and ultimately, driving growth.

Bridging the Skills Gap

Talent scarcity is a major challenge in the British labour market, exacerbated by the COVID-19 pandemic and Brexit, and further threatened by an ageing workforce – in particular across manufacturing and construction.^3,4 Despite a dip in the jobs market due to economic challenges like the cost of living crisis, vacancy levels persistently stood at nearly a million since 2023, the Office for National Statistics (ONS) reports.⁵ Furthermore, Adecco’s research found that over a third of large UK organisations struggle to find the talent they need due to candidate hesitancy amid economic uncertainty (35.7%).

Refugees offer a solution to fill these gaps, bringing diverse skills, qualifications, and work experiences. Contrary to prevailing myths, refugees possess valuable skill sets that are often overlooked. Their unique backgrounds have honed their adaptability and resilience, making them prime candidates for training, reskilling, and upskilling in Britain’s evolving labour market. Recognising and harnessing these strengths is crucial for addressing the country’s workforce challenges and fostering a more inclusive and dynamic economy.

Over a third of large UK organisations struggle to find the talent they need

Source: Adecco

A Solution for a Future-proof Workforce

The UK faces a trifecta of challenges impacting its labour market: an ageing population, the pandemic, and Brexit, leading to a potential shortage of 2.6 million workers in less than a decade.⁶ Critical sectors such as transport, the NHS, and education are all at risk.

Refugee populations offer a vital lifeline for many industries, as they are predominantly in their productive working years, with 42% of main applicants granted protection aged between 18 and 29 years old, according to Home Office data from Q1 2021 to Q1 2024.⁷ As the UK’s older workforce increases, with 34% over 50 in 2023 according to ONS, this influx of young talent from refugee integration holds promise for addressing ageing workforce challenges.⁸

Refugee Talent and Business Dynamics

Refugees display notable qualities that directly impact talent retention, acquisition, and engagement, all crucial for business growth and productivity.

According to a joint study by the Tent Partnership for Refugees (Tent) and the Fiscal Policy Institute, nearly three in four organisations (73%) report that refugees tend to stay with the same employer longer, fostering stability in the workforce.⁹ From a talent acquisition perspective, establishing positive relationships with initial cohorts of refugees can lead to further recruitment, enriching the talent pool and cultivating a diverse, inclusive workplace culture that promotes innovation and growth.¹⁰

Moreover, additional research from Tent revealed that 68% of surveyed companies attributed increased employee engagement to hiring refugees.¹¹

73% of organisations say refugees stay with the same employer longer

Source: Tent and Fiscal Policy Institute

A Positive Impact Beyond Employment

When considering the potential benefits of granting refugees access to the job market, it is crucial to recognise the significant contributions they can make to the UK economy. From a fiscal perspective, a recent study by the National Institute of Economic and Social Research (NIESR) reveals that allowing asylum applicants who have been waiting longer than six months the Right-to-Work could yield substantial annual profits.

Among other advantages, the government could save an estimated £4.4 billion in accommodation and public services costs. Additionally, tax revenues would see a boost of £880 million, and Gross Domestic Product (GDP) could increase by £1 billion.¹² These figures highlight the economic benefits of integrating refugees into the workforce, transforming them from passive recipients of aid into active contributors to the nation’s prosperity.

Barriers to Refugee Employment

Employment is intricately linked to an individual’s quality of life, providing financial independence, confidence, trust, and civic engagement. For refugees, employment isn’t just important; it’s essential for survival and successful integration. However, their job search journey is far more complex compared to the general population. Despite having the right to work in the UK, refugees are about 30% less likely to be employed than native-born citizens. The Commission on the Integration of Refugees reports that the employment rate for refugees stands at 51%, compared to 76% for British-born individuals.

Challenging Circumstances

Despite their strong motivation to work and impressive skill sets, refugees face critical disadvantages compared to the rest of the workforce. Faced with displacement, they often lack social networks and familiarity with the local job market, affecting their access to opportunities and impacting interview experiences. In addition, navigating language differences, CV gaps, and non-recognition of qualifications add to a long list of barriers, making their chances of finding employment more difficult.^13,14 Moreover, public misconceptions, discrimination, and a lack of inclusive mindset among employers exacerbate their challenges, further hindering refugee integration into the workforce and impeding the UK’s access to motivated talent.

Systemic Barriers

Europe is hosting the highest number of refugees since World War Two due to international geopolitical events. This has led to a UK backlog in refugee status decision-making, increasing government accommodation costs – estimated at £1.2 billion annually – while applicants await evaluation.¹⁵

Three in five asylum applicants wait more than six months for a decision

Source: Refugee Council

Three in five asylum applicants wait more than six months for a decision

Source: Refugee Council

Economic inactivity ensues as they await decisions, impacting their access to education, training, and employment. Data from the Refugee Council shows that three in five applicants (65%) wait more than six months for a decision, blocking their access to resettlement opportunities¹⁶. While national security concerns are valid, the statistics underscore the need for improved policy implementation and operational objectives in assessing refugee statuses. Supporting refugees isn’t just an economic matter; it’s a humanitarian obligation that requires careful consideration.

Reflecting on the role of business in supporting refugee integration, Jen Stobart, Director at Tent UK - a coalition of over 70 businesses in the UK connecting refugees to work - told us:

Refugees face numerous barriers to formal employment, such as lower language proficiency, transportation issues, lack of childcare options, as well as a lack of social and professional networks. These hurdles require particular attention from businesses, who – by making small upfront investments and tailoring their hiring practices – can level the playing field and give a fair chance to the many refugees still looking for a job.

Jen Stobart, Director at Tent UK.

Five ways to unlock refugee employment

Tailored support and inclusive practices stand as key imperatives in unlocking refugees’ employment potential. From job training to community engagement, each step forward offers a lifeline for those rebuilding their lives in a new land. Below are five key steps in supporting that journey:

1. Tailored Job Training and Credential Recognition:

Develop training programs specifically designed for refugees’ qualifications and aligned with your organisation’s needs. These programs could include language classes, vocational training, and job placement services to effectively assess and utilise refugees’ skills and potential. Simplifying the process for recognising foreign qualifications is also essential, enabling refugees to apply their existing skills in their new environment.

2. Mentorship Programs, Community Engagement and Language Acquisition:

Addressing the link between mental health and the localisation of refugees, implement mentorship programs where refugees are paired with local mentors to navigate the job market. Promote community engagement through cultural exchanges and events to positively impact their integration process. Additionally, offer intensive language courses to help refugees overcome communication barriers where needed, significantly enhancing their employment prospects.

3. Flexible, Diverse and Inclusive Workplaces:

Align with a robust Employee Value Proposition by fostering strong Equity, Diversity, and Inclusion (ED&I) initiatives, and offering flexible work options such as part-time or remote work. These strategies can effectively accommodate refugees facing unique challenges. Conduct training sessions for managers and colleagues to raise awareness about cultural differences, which can decisively combat workplace discrimination and promote a more diverse and inclusive environment.

4. Pursue Partnerships with Specialised Agencies and Organisations:

Hiring and onboarding refugee talent necessitates going beyond conventional recruitment avenues and instead, collaborating with specialised organisations like the Tent Partnership for Refugees (Tent) which supports the business community in their refugee inclusion efforts. Partnering with such institutions can significantly enhance refugees’ integration into the workforce by providing expert guidance, effective training, and valuable networking opportunities.

5. Access to Services and Financial Literacy:

Ensuring refugees have access to healthcare and social services is crucial for supporting their physical and mental wellbeing. Additionally, providing legal assistance for immigration and employment-related issues is essential. Finally, offering financial literacy education will help refugees manage their finances and understand what support and resources are available to them.

It’s essential to highlight the importance of monitoring and evaluation. Continuously assess the effectiveness of employment programs and make data-driven improvements to better support refugees in finding and retaining employment.

From Nur Ahmad’s perspective, a degree-educated entrepreneur and political refugee who received support from Adecco’s employment platform, the discourse highlights the importance of addressing refugee employment gaps:

Given that many refugees have an employment gap, companies should consider creating bespoke apprenticeship programmes and ‘restart’ career initiatives related to the roles they want to fill. This way, potential refugee candidates can receive well-planned training to grow their skills in the long run. Collaborating with specialist refugee employment groups or local refugee organisations can also help small- and medium-sized businesses reach a wider talent pool.

Nur Ahmad, Entrepreneur & Political Refugee.

A Call to Action for Refugee Integration

Hiring refugees is a win-win, but standard recruitment practices aren’t enough for successful integration. Companies need intentional upfront investments for significant long-term benefits.

The cause has been a key priority for The Adecco Group, which has pledged to find jobs for 85,000 refugees globally and train or upskill 17,000 by 2027. Adecco’s commitment to supporting displaced individuals has been evident since March 2022, just days after the war in Ukraine began, with the launch of a not-for-profit social platform to link refugees with employers.

As Adecco president Christophe Catoir emphasises:

Most importantly, no one chooses to be a refugee. We strongly believe that work is not just a source of income, but a first, important step for rebuilding a life, integrating in a new country and finding a place in society again. Moreover, for companies, embracing diversity by employing refugees brings unique perspectives, strong loyalty, and much needed skills to the workforce. This not only fosters a more inclusive workplace culture but also contributes to the overall success of a company.¹⁷

Christophe Catoir, Adecco President.

This initiative has already connected over 10,000 refugees with more than 2,000 employers and we continue to strive to meet our pledge through local consultancy services, mentoring programs, training, and outreach in collaboration with Tent.

If you are interested in understanding more about how Adecco can support you with the delivery of these services, please contact us.

Tent is an international organisation, offering businesses expert guidance, training, and best practices through its extensive global network of over 400 businesses dedicated to integrating refugees into the labour market. Additionally, Tent facilitates connections with local refugee-supporting organizations across the UK to help source talent at all levels. If your business is interested in joining the Tent Partnership for Refugees, please reach out here.