49% said they would be less likely to hire new staff, while 36% said they were more likely to outsource roles or operations to other countries.
Headcount expectations recovered for the second month running from -4 to +3, the first positive reading since September 2024.
The annual IoD State of the Nation Directors survey asked cross-sector leaders for their views on a range of issues and opportunities across the business landscape.
The proposed scheme would allow 18-30-year-olds to work and travel freely between each jurisdiction for up to two years.
However, the index of business leader optimism for the future of their own organisation declined to +38 in April, down from +42 in March, and net revenue expectations declined from +44 to +40.