In what many HR professionals view as a watershed moment, nearly six in 10 UK hiring leaders expect the majority of new recruits in 2026 to come from outside their home country.
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.
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.
