With the Labour government’s new budget, UK companies are facing a double-edged challenge: higher National Insurance (NI) rates and a Minimum Wage hike that add immediate strain to hiring budgets. For many businesses, these changes can mean stretched resources, reduced growth potential, and a hard look at hiring priorities.
But with cost-effective, highly skilled talent pools around the world, businesses now have a smart alternative to local hiring. Let’s look at how global hiring, particularly with an employer of record (EOR) like Teamed, can offer UK businesses immediate relief from rising costs and a scalable pathway to future growth.
What’s changed? New costs for UK employers
The latest Labour budget brings a series of changes that affect hiring strategies for UK companies of all sizes. Here’s a quick breakdown:
- National Insurance increases: NI for employers now sits at 15% on salaries over £5,000, a jump from the previous 13.8%, creating a costly burden for businesses expanding their teams.
- Minimum Wage hike: From April, the Minimum Wage for those over 21 will rise from £11.44 to £12.21 per hour. For companies with entry-level or high-volume roles, this adds significant costs to payroll.
- Capital Gains Tax increase: For those with investment portfolios, CGT hikes could redirect funds typically reserved for recruitment and operations.
These cost increases push companies to find creative ways to attract and retain talent without overextending their budgets — and global hiring might be the smartest answer.
Why now? How global talent can balance the books for UK businesses
The recent budget challenges UK businesses of all sizes to find creative solutions to their hiring needs. From budding start-ups to fast-growing scale-ups and established mid-market firms, every business type has a unique set of pressures — and global hiring offers specific benefits tailored to each.
If you’re a start-up:
- Flexibility and Cost Control: Start-ups thrive on agility, but rising local hiring costs can shrink your budget fast. Global hiring allows you to bring in specialised talent—like developers or customer support — from regions where wages are lower, without compromising on quality.
- Streamlined Compliance: Early-stage companies often lack the resources to manage complex legalities. With our EOR model, you’re covered on compliance and tax, giving you more time to focus on scaling.
- Scalable Hiring: For start-ups needing quick access to diverse skills, global hiring means you’re not limited to the UK’s tight talent market — you can scale up with skilled remote employees without the usual overheads.
If you’re a scale-up:
- Maintaining Growth Amidst Rising Costs: Scaling means balancing ambitious growth goals with a realistic budget. With the NI increase and Minimum Wage hike, hiring locally could slow your pace. Tapping into global talent pools can give you the specialised skills you need — at a sustainable cost.
- Access to Specialised Talent: At this growth stage, you need high-quality talent that brings specialised skills like data analysis, finance, or project management. Teamed’s EOR service lets you hire top talent from markets like South Africa and the Philippines, where these skills are abundant and affordable.
- Compliance Peace of Mind: Expansion is complex enough without adding legal risks. Teamed ensures compliance in every region, handling payroll, contracts, and local laws, so you can focus on building your brand.
For mid-market companies:
- Offsetting Rising Operational Costs: With higher wages and NI rates, cost savings are essential. Hiring globally reduces payroll burdens, enabling you to sustain or even expand your workforce without the cost spikes associated with UK hiring.
- Long-Term Talent Strategy: For companies looking to establish a remote or hybrid workforce, global hiring isn’t just a quick fix — it’s a way to build a resilient, geographically diverse team. Teamed’s EOR model provides stability and consistency, even across borders, so your teams feel supported and engaged.
By making global hiring part of your strategy, you can control costs, access specialised skills, and grow sustainably — even with the latest budget pressures. Best EORs, like, Teamed, are driven by human touch, ensuring your remote team feels connected, supported, and aligned with your goals.
Success stories: how two UK companies already benefit from global hiring
City Relay – Staying agile and cost-effective with remote support teams in the Philippines
City Relay, a London-based property management company, needed to expand its customer support team while managing costs. Teamed helped City Relay build a remote team in the Philippines, providing skilled support at a fraction of the cost of London-based hires.
"One of the things that really stands out about Teamed is their personal touch. They’re not just a service provider — they’re a partner. I know I can always reach out to Paulina or Michael, and they’ll be quick to respond with whatever we need.” - Amy Pantlin, Head of People | City Relay
City Relay adopted global workforce operations since early 2020s, and they’re planning to increase that to and have increased their global staff numbers by 80% in the last two years — a move that enables cost-effective growth even as UK-based hiring costs continue to rise.
CT – Navigating talent shortages with South African finance expertise
Scotland’s leading accounting firm, CT:, faced a shrinking pool of finance professionals in the UK and rising local hiring costs. Partnering with Teamed, CT: expanded to South Africa, where they could hire skilled finance professionals who met their standards without the geographic limitations.
"Teamed has empowered us to uphold our dynamic work policy while expanding our operations at the same time. Our South African and Australian colleagues have become indispensable assets, accelerating the pace at which we operate and creating more flexible working arrangements for our UK team members — something we don’t believe would have been possible without Teamed!" - Amanda Masuku
, HR & Resourcing Associate | CT:
Teamed’s seamless support allowed CT to maintain its growth trajectory, handling payroll, contracts, and compliance issues at ease. CT recommends Teamed to any organisation looking for a reliable partner to help streamline the hiring process and navigate challenges associated with a limited talent pool in the UK or abroad.Their team emphasises that there’s no need to risk your business or stunt your growth when there’s innovative solutions like Teamed available.
Why hiring globally through an EOR is a smart move now
With rising hiring costs in the UK, global talent offers a powerful alternative—giving you the skilled professionals you need without stretching your budget. Through an employer of record (EOR) like Teamed, you gain access to top talent worldwide while staying fully compliant and supported at every step. Here’s why this approach works now more than ever:
- Real savings without cutting corners: Hiring internationally gives you the freedom to find top talent at a fraction of local costs. With Teamed, you can focus on hiring the right people, while benefiting from savings by tapping into skilled talent pools in places like South Africa and the Philippines with lower costs for hiring top talent.
- Full compliance, zero headaches: Expanding internationally can mean complex tax, contract, and employment laws. Teamed takes care of it all — payroll, holiday management, tricky compliance questions, and contract specifics — ensuring you’re always covered, without the stress.
- Access to world-class talent pools: With UK talent in short supply and rising local costs, accessing skilled professionals abroad can give you a competitive edge. In regions like South Africa, the Philippines, and Spain, you’ll find highly qualified candidates in finance, tech, and customer support — helping you build the team you need without local constraints.
- A partner that feels like part of your team: With Teamed, it’s more than just hiring — it’s a people-first approach. From payroll to holidays and contract support, our team feels like an extension of your own HR, so every remote hire feels connected, engaged, and supported.
The Labour budget has made one thing clear for UK companies: rising local hiring costs mean it’s time to think globally. With Teamed, businesses like yours can access skilled, cost-effective talent — just as our clients like City Relay and CT have done. By reducing operational expenses and eliminating the stress of local compliance through our expert EOR services, Teamed lets you focus on building a strong, resilient team.
What else is there to think about? Let’s chat about how we can help you grow with global talent today.
.webp)
