Scaling in a Post-Brexit World: Why UK & EU Founders Are Going Global with Hiring

Brexit has reshaped hiring in the UK and EU. Businesses are now looking beyond borders to address talent shortages, especially in tech. Here’s what you need to know:

• 25% of UK companies are hiring globally to find skilled workers.
• 67% of businesses aim to diversify teams through international recruitment.
• Global hiring also opens doors to new markets and reduces staffing costs by 50–70%.

Key challenges include navigating immigration rules, tax compliance, and legal requirements. Many companies are using Employer of Record (EOR) services and recruitment platforms to simplify global hiring.

Why it matters: Hiring globally isn’t just about filling roles - it’s about staying competitive, accessing untapped talent pools, and building diverse teams that can drive growth in a post-Brexit world.

UK Immigration: Hiring from outside UK after Brexit | Sterling ...

Post-Brexit Hiring Obstacles

The post-Brexit landscape has created new challenges for UK and EU businesses, forcing them to rethink their international hiring strategies.

New Immigration Rules

With the introduction of the Points-Based Immigration System, hiring EU talent in the UK now requires navigating stricter rules. Employers must obtain sponsorship licenses and conduct detailed right-to-work checks for EU candidates. They also need to ensure candidates meet specific salary thresholds, confirm that roles qualify under skilled worker categories, and maintain thorough compliance records. These changes have widened existing talent gaps across multiple industries.

"We know that there's already a skills shortage within technology in the UK and globally, so CIOs will be fighting to make sure that they retain their tech talent and that they also attract the best available".

Skills Gaps by Sector

Brexit has exacerbated talent shortages in specific sectors. For instance, 59% of CIOs report that limited access to skilled workers could hinder their organization’s success. Meanwhile, 77% of these leaders plan to rely on non-UK staff for software development. Adding to the challenge, 16% of UK tech employees were considering leaving the country in early 2020.

Legal and Tax Requirements

Hiring across borders now involves navigating a maze of tax and compliance rules. UK employers must stay on top of both domestic and international regulations to avoid costly mistakes. Here’s a quick look at UK income tax rates for England, Wales, and Northern Ireland:

Key compliance areas include:

• Social security contributions across jurisdictions
• Tax treaties and withholding requirements
• Auto-enrollment for workplace pensions
• Statutory payments like sick pay and maternity benefits

"Brexit has redefined how UK companies engage with talent from the EU and beyond, making it imperative to stay informed and adaptable".

To navigate these complexities, many organizations are turning to Employer of Record (EOR) services for help with compliance and payroll, allowing them to focus on their core business activities.

Benefits of Global Recruitment

Global recruitment is transforming how UK and EU businesses scale, especially in the post-Brexit landscape. It’s opening doors to new talent pools and creating opportunities to drive growth.

New Talent Markets

Expanding into global talent markets has become a game-changer for companies. Emerging tech hubs are brimming with skilled professionals, offering a way to ease the competition for talent. For example, London’s supply-demand ratio for tech talent is 2, reflecting intense competition. Compare that to Mexico City’s ratio of 8, where finding skilled workers is far easier.

Here’s how specific regions are proving to be hotspots for hiring:

Remote Work Benefits

With 75% of employers struggling to fill job openings, remote work has become a critical tool for accessing international talent.

"You can often attract another country's top tier talent that might not be accessible in your local market because of the level of competition. Tech professionals located outside of the established saturated hubs are more responsive to established organizations offering globally competitive compensation. This type of job opportunity can be life-changing for international candidates and their families, especially in developing nations. You'll see increased motivation and loyalty in return." - Brett Jones, Co-founder

Remote work not only expands the talent pool but also creates more diverse teams, which can give companies a competitive edge.

Team Diversity Results

Diverse teams aren’t just about inclusivity - they deliver measurable results. Research consistently shows that companies with diverse executive teams outperform those without. Here’s why:

• Better Problem-Solving
  Studies from Harvard Business Review reveal that diverse teams solve problems faster than homogeneous ones.
• Stronger Market Insights
  Teams with varied backgrounds understand local customs, consumer behavior, and market trends, helping businesses expand into new regions more effectively.

"Cross-cultural recruitment is such a powerful driver of innovation and growth. Embracing diverse perspectives can truly unlock a team's potential." - Jaron Visagie, 360 Recruitment Specialist & Business Development

Additionally, 60% of UK businesses hire globally to explore new markets. By leveraging diverse teams, these companies gain deeper insights and improve their ability to compete. These advantages highlight the importance of adopting global hiring practices.

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Making Global Hiring Work

Hiring across borders requires careful attention to legal compliance, technology, and team management. Here’s how founders are successfully building international teams.

EOR Services Guide

Employer of Record (EOR) services are crucial for companies expanding globally. They handle the legal and administrative complexities of hiring in different countries, making it easier to manage international employees.

When choosing an EOR provider, consider the following:

"Each country has unique and complex rules, laws, and regulations, that can affect our ability to conduct business, as well as the employability of the citizens of those countries." - GitLab

To stay compliant, review local requirements like health coverage, leave policies, pension contributions, safety guidelines, notice periods, and parental benefits. These are the building blocks of a solid international hiring strategy. Once compliance is covered, technology can take much of the heavy lifting.

Hiring Tech Tools

Recruitment platforms simplify global hiring processes, from finding candidates to onboarding them. These tools centralize HR, payroll, compliance, and other administrative tasks, making it easier to manage international teams effectively.

Remote Team Management

Managing a distributed team requires clear communication, cultural sensitivity, and structured workflows. Here are three key practices:

• Structured Onboarding
  Provide clear, concise onboarding materials that outline work expectations, success metrics, and collaboration tools.
• Cultural Integration
  Acknowledge cultural differences by scheduling meetings at times that work across time zones and recognizing local holidays.
• Performance Monitoring
  Focus on results rather than micromanaging activity. Set measurable goals and build trust through outcome-based evaluations.

Company Success Examples

By adopting global hiring strategies, several companies have turned challenges into opportunities for growth and innovation.

Brexit Challenge Solutions

Post-Brexit, companies in the UK and EU have tackled hiring challenges by expanding their talent search globally.

In 2020, QuoIntelligence sought cybersecurity experts with regional expertise to establish itself as "Europe's threat intelligence partner."

"Diversity is absolutely critical for good intelligence. Having people with different perspectives and different points of view helps our clients make a decision. And if we were to only employ people in, say, big cities in Germany, we wouldn't get that diversity that makes our business so successful." – Antonio Arias Lopez, Chief People Officer, QuoIntelligence

Automation Hero encountered difficulties setting up a UK entity but solved these issues by partnering with an EOR (Employer of Record). This partnership allowed them to convert international contractors, simplify hiring processes, ensure compliance across multiple countries, and increase employee referrals.

Global Team Results

The results of these strategies speak for themselves:

Primer's remote-first strategy highlights the importance of workplace flexibility:

"Foundationally, what remote work offers is ultimate flexibility. Flexibility in where you live, how you work, when you work, where you work. Our philosophy is that we want people to bring their best selves to work. In order to do so, we give them a flexible environment, in which they essentially own their time, their work and their success. Ownership is a big thing for us." – Erin Potter, Head of People and Operations, Primer

These examples show how companies have effectively addressed local talent shortages by embracing global recruitment, turning post-Brexit challenges into opportunities for growth.

Conclusion: Global Hiring Advantages

Main Points Review

The post-Brexit environment has reshaped how UK and EU companies approach hiring. Recent data shows that 25% of UK businesses are now looking for global tech talent. This shift is changing how companies build competitive teams. In fact, 67% of companies are hiring globally to create diverse teams, while 60% use it to explore new markets.

Global hiring not only fills immediate talent gaps but also helps businesses save significantly - remote talent acquisition can reduce staffing costs by 50–70%.

Here’s a quick look at the key challenges and solutions:

These strategies are helping businesses refine their recruitment methods.

Recruitment Platform Benefits

Specialized recruitment platforms make global hiring easier by simplifying processes and ensuring compliance. For growing companies, these services typically start at $1,000 per month per role, with flexible options to scale as hiring needs grow.

Some key benefits of using these platforms include:

• Experienced recruiters who understand local market needs
• Streamlined hiring with weekly progress updates
• Risk reduction through 90-day replacement guarantees
• Access to pre-vetted talent from multiple regions

These platforms are becoming essential tools for businesses looking to expand their global reach efficiently.

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