UK employers widen overseas hiring amid skills shortages

Remote has published research showing that UK employers are increasing overseas recruitment in response to skills shortages. The survey found that 46% of respondents had widened their search for talent to other countries.

The study of 500 HR and business leaders in the UK points to growing reliance on international recruitment as companies struggle to fill roles locally. It also suggests the shift is exposing employers to legal, payroll and compliance challenges as they manage staff and contractors across borders.

Almost three-quarters of respondents, or 73%, said they had missed a key business objective in the past year because they could not access the talent they needed. Those objectives included product launches, expansion plans and revenue targets, indicating that hiring constraints are affecting operating plans as well as recruitment teams.

The findings also showed that 81% believed it had become harder to find qualified talent locally than a year earlier. At the same time, 78% said they would increase international hiring if it were as easy and low-risk as hiring within the UK.

Respondents expect more than half of their new hires by the end of 2026 to be based outside their main country of operation, with the average share reaching 52%. That points to a sizeable shift in workforce planning for many employers that have traditionally hired closer to home.

Compliance pressure

The move towards overseas hiring appears to be accompanied by wider use of contractors and freelancers. Among businesses that use those arrangements, 94% said they had increased their use over the past two years.

That growth has not reduced administrative risk. Of the businesses using contractors or freelancers, 94% said they had encountered compliance issues in the previous 24 months.

The research also highlighted a disconnect between experience and confidence. Although almost all respondents reported some form of compliance challenge, 99% still said they were confident their arrangements complied with local employment law.

The results suggest many employers may be underestimating the complexity of managing staff in multiple jurisdictions. Remote framed that complexity as both a consequence of global hiring and a reason some employers remain cautious about expanding it further.

Changing priorities

According to the survey, international hiring is no longer treated solely as a niche response to hard-to-fill roles. In the UK results, respondents most often cited cost flexibility and access to specialised skills as the main reasons for hiring internationally, with each factor named by 20%.

That emphasis suggests overseas recruitment is being considered as part of broader workforce strategy rather than only as a response to domestic labour shortages. For employers facing persistent gaps in specialist roles, cross-border hiring may now be viewed as a more routine part of team-building.

The findings come as businesses in many sectors continue to reassess where work is done and how people are engaged. Remote's survey suggests UK companies are becoming more willing to look beyond national borders, but that willingness is colliding with the operational demands of employment law, payroll processes and contractor classification.

Job van der Voort commented on the survey findings.

"More UK businesses are hiring abroad because they can't find the skills they need at home. But finding the right person is just the start. You have to hire them quickly, pay them correctly and follow local employment law wherever they live. Seventy-eight percent told us they'd hire more internationally if it were as easy and low-risk as hiring locally. That's a big gap between what companies want and what most of them are set up to do. And the companies that close the gap first will have a big advantage," said Job van der Voort, Co-founder and CEO of Remote.