Over half of US firms say they’ll hire remotely beyond the pandemic

Survey asked employers around the globe about long term hiring intentions - 53% of US firms will hire remotely beyond the pandemic, 25 percentage points less than the global average. Globally, 47% of firms are concerned about complying with international employment law and 29% are concerned about potential HR overheads.

According to a recent survey of hiring managers and C-level executives, more than half of US respondents (53%) say they are considering hiring remotely, in comparison to nearly four-fifths (78%) of organisations in other countries. The research, from Omnipresent, an Employer of Record which helps employers employ people globally, sheds light on the strategies companies are taking to manage talent with remote or hybrid roles in the longer term, beyond responding to the immediate impact of the COVID-19 pandemic.

The survey of 700 employers, based in the US, Germany, France, the UK, Canada, Israel, and Singapore, revealed that the US is less likely than other countries to hire remotely - 25 percentage points fewer than the global average and 39 percentage points fewer than the UK, in which 92% of firms plan to hire remotely irrespective of the pandemic.

Omnipresent says that the increased intention to hire remotely in countries such as the UK, Singapore and Israel is linked to the prevalence of tech companies in these countries and their aspirations to become or maintain a tech-hub status. In contrast, though the US is a global leader in the startup arena, experts at Omnipresent state there are likely language and cultural barriers that employers are not used to navigating compared to their counterparts in Europe, especially when the majority of US companies surveyed (59%) would only hire from within the US.

The survey also reveals that, although most respondents plan to hire remotely within their own countries, many are still looking to hire across the globe. While fifty-nine percent of US companies would only hire within the US, nearly half of UK and Canadian organisations (48%) would employ beyond their national borders, as would 47% of Israeli and 44% of Singaporean employers.

Despite the fact that 83% of all surveyed employers plan to move to a fully remote or hybrid working model, there remain reservations in each country about remote hiring outside their home country. On average, 47% of employers are concerned about complying with international employment law when hiring remotely, 29% are concerned about potential HR overheads and 20% are concerned about language and culture.

Matt Wilson, Co-Founder and Co-CEO at Omnipresent, said:

“Overall, and beyond the pandemic, there is no overarching motivation pushing employers to hire remotely. Reasons range from cost savings, access to expertise, productivity and employee engagement.

“However, there are synonymous barriers that are concerning organisations’ when it comes to employing staff remotely. Generally, hiring managers require more support to employ legally, efficiently and effectively, before they can successfully move to a fully remote or hybrid working model. This is key in the US where employers need to manage different regulations across states.

“Employers that are considering hiring beyond their borders are concerned about handling compliance and local bureaucracies - ensuring that they are managing onboarding, offboarding, payroll, welfare and benefits in line with local employment laws, as well as supporting their own values to attract and retain talent.

“Companies that effectively manage remote employment issues surrounding compliance and bureaucracies can reap the rewards of remote working.”

For more information on employers’ global hiring intentions, visit Omnipresent’s report ‘How do employers in different countries feel about employing remotely in 2021’.