"Drop the net migration target and replace it with a system that increases control by ensuring that people coming to the UK make a positive contribution to the economy," the organization said Thursday in its report.
The CBI proposed reforming the Controlling Migration Fund for schools and hospitals to have extra funding to cope with any challenges posed by immigration.
The lobby added that UK businesses would have to rely solely on "highly restrictive non-EU immigration system" when recruiting from abroad after Brexit, while currently they are able to use the EU free movement as well.
"For businesses to harness the opportunities on offer in a new Global Britain, they require easier access to international workers from around the world, from Austria to Argentina to Australia," the report read.
The lobby called for a reform of the existing immigration system, which would help increase investment and exports with all countries.
Last year, UK Prime Minister Theresa May confirmed the previous Conservative government's annual net migration target of less than 100,000.