Global hiring set to overtake local recruitment by 2026 but firms face compliance hurdles

-

The trend, revealed in a 2025 Global Workplace Report from payroll and HR‑technology firm Remote, indicates that the future of recruitment is becoming decidedly borderless, even as significant regulatory and logistical obstacles remain.

The report surveyed 3,650 business and HR leaders from 10 countries and found that on average UK firms expect 57 % of their incoming hires to be based overseas. The change is being driven by acute local talent shortages and a growing global appetite for distributed workforces.

Yet 77 % of UK respondents said that unclear or conflicting regulations had made it harder to hire internationally, while three‑quarters (75 %) reported compliance issues, with each incident costing an average of £26,000. The findings reveal both the urgency of global hiring and the scale of the challenges organisations face in making it work effectively.

HRreview Logo

Get our essential weekday HR news and updates.

This field is for validation purposes and should be left unchanged.
Keep up with the latest in HR...
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

Global hiring becomes the default strategy

The research showed that 59 % of UK HR leaders anticipate that more than half of their new hires in 2026 will be from outside their home country. The data further revealed that companies in the Netherlands (65 %), Sweden (57 %) and Germany (53 %) were ahead of the curve in recent international hiring, compared with France (29 %) and Australia (34 %). UK and US firms were closer to the global average of 45‑47 %.

According to Remote, the trend suggests the real cost of global hiring now lies in compliance, payroll and infrastructure rather than candidate supply.

“We are witnessing a seismic change in how companies recruit and scale,” said Job van der Voort, CEO and co-founder of Remote. “Hiring globally is no longer a fringe strategy. The ongoing talent shortage, and the fact that companies struggle to source local staff, means it is now becoming the default.

“But companies must be prepared to overcome significant challenges. Managing compliance, payroll, and regulations across borders requires robust infrastructure. Without it, the risks grow as fast as the opportunities.”

Regulatory and compliance risks mount

The report identified that 77 % of UK organisations had faced difficulty with unclear or conflicting local regulations, and 75 % said compliance had become a barrier to international hiring. Each incident was estimated to cost around $42,000 globally.

In the UK, that figure was put at approximately £26,000. These costs reflect issues such as employment status misclassification, tax and social‑security complexity and payroll risk. The report warned that unless firms invest in the right systems and partnerships, the financial and reputational costs of global expansion could outweigh the benefits.

“Talent that once had to migrate to wealthier nations like the UK or US can now stay in their home countries and still access global opportunities,” said Barbara Matthews, chief people officer at Remote.

“That means skills, income and economic contribution are increasingly retained within smaller and emerging economies, potentially reshaping the balance of global growth.”

Operational realities for HR teams

Remote noted that a large proportion of companies operating globally now rely on HR units with fewer than 10 people, supported by automation, payroll platforms and external partners. These lean teams are expected to manage hiring, compliance and payroll across multiple geographies.

The need for scalable tech, integrated HR systems and end‑to‑end workflows is no longer optional. Firms that fail to invest risk delays, mis‑hires and compliance headaches.

The report also revealed a disconnect between employer intent and operational readiness. While 84 % of organisations recognised the value of hiring internationally, many admitted slow implementation or inconsistent processes. The message to HR leaders is to prioritise infrastructure, not just policy.

What it means for UK organisations

Observers say UK employers face a double challenge. On the one hand they must solve domestic skills shortages through broader global talent pools; on the other they must adapt to a regulatory environment that remains fragmented and costly. For HR professionals the path forward involves several strategic priorities:

Build the right infrastructure: Invest in technology and global platforms that can manage payroll, benefits, tax and compliance in multiple jurisdictions.

Partner with experts: Work with employer‑of‑record providers, legal advisors and payroll specialists to reduce risk and accelerate hiring.

Reskill local talent: While global hiring expands, maintaining investment in domestic talent development remains critical to workplace resilience.

Align strategy and operations: Link talent‑acquisition planning with business objectives and regional expansion plans to avoid hiring becoming tactical rather than strategic.

Managing Editor at Black | Website

William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.

Latest news

Jeanette Wheeler: Your transformation programmes are stalling on alignment, not budget

Most leaders assume their next big change programme will succeed or fail based on budget or the right technology. Those things are rarely what stops progress.

Return to the office ‘has not rebuilt workplace connections’

Research suggests increased office attendance has not restored workplace relationships, with many employees continuing to experience loneliness and disconnection.

Sheila Attwood on the cost-of-living squeeze

"Employers are under pressure to go further to support employee living standards."

NHS plans rewards for 30-minute daily walking challenge

New incentives are designed to encourage healthier habits and increase physical activity as part of England's 10-year health plan.
- Advertisement -

England’s overnight World Cup clash and 5am pub opening prompt CIPD advice

The CIPD is urging organisations to agree any flexibility before England's 1am World Cup last-16 tie to help minimise disruption at the start of the working week.

Russell Cowley: Gen Z – rebuilding workplace culture, break by break

Gen Z workers are taking proper breaks and in doing so, they may be fixing something the rest of us broke.

Must read

Al Bird: Social Learning – Productivity drain or HR game changer?

Google receives almost 12 billion searches per month –...

Michael-Jon Andrews: Is there a lesson to be learnt from the French on working hours?

It was widely reported in the media last week...
- Advertisement -

You might also likeRELATED
Recommended to you