According to a report recently published by The Chartered Institute of Management Accountants (CIMA), 79% of SME employers have identified skills gaps in their organisation over the past 12 months. Despite 82% of employees wishing to upskill, fewer than one in three have received training in the past year.

For SMEs, budget constraints often limit investment in upskilling, while many businesses rely on outsourcing to specialists due to a lack of in-house expertise. Despite the fact that this route often proves less cost efficient, it is a common one due to the challenges posed by growing skills gaps. However, sinking costs into hiring multiple third-party consultants or investing unfeasible periods of time into upskilling current staff are not the only options when seeking to leverage particular expertise. An alternative, compliant and economical option can be found in the form of global hiring. 

Hiring globally via Employer of Record (EoR) services allows SMEs to access in-demand skills worldwide without the cost and complexity of engaging multiple external parties or establishing foreign entities. A global approach to hiring not only provides a cost-effective solution but also diversifies risk, ensuring businesses remain agile in an evolving market. 

Global hiring drives innovation through diversification

When business leaders seek out talent beyond their home markets, they are not only broadening the pool of prospective candidates – they are also introducing new and diverse perspectives to their organisation, shrinking skills gaps while driving innovation in-house. 

For example, research shows that manufacturing firms in the UK became 7–12% more productive after hiring their first foreign managers, indicating the instant benefits of globalised teams and seeking skills beyond the home market.

International operations boost agility

Employing staff in multiple regions also means that all your eggs are not in one basket, so to speak. If economic upset or unforeseen circumstances – such as US tariffs – impact the market in one of your countries of operation, your business can still rely on its overseas branches for steady revenue streams and/or the upkeep of operational standards.

Market diversification minimises risk and allows businesses to pivot. Organisational agility is key to adapting to new circumstances and overcoming challenges such as skills gaps. 

Test new markets by hiring internationally

SMEs seeking to overcome skills shortages through engaging a global workforce will be aiming to do so in adherence to strict budgets and timelines. At the same time, in many cases the countries of hire will have also been strategically selected in order to test the waters and measure whether they may yield opportunities for permanent expansion in future.

Employing overseas workers via an EoR enables companies to try out and assess new markets before committing to the extensive costs and time and resource investments associated with setting up legal entities in-country. Once it is clear that there is a viable space in the market for your product or service, and that the chosen location offers a concentration of in-demand skills, you can make strategic decisions around expansion. For example, a recent study shows Ireland ranks second in a new global league for tech competitiveness, largely due to its high output of computer science graduates, making it an attractive option for companies seeking computer science skillsets.

In order to overcome the challenge of widening skills gaps, SMEs must look to global hiring to help them hire beyond borders, thereby driving innovation and retaining their competitive edge. Global hiring through EoR solutions empowers SMEs to address skills shortages, access diverse talent pools, and sample new markets. As the working world continues to undergo rapid change, businesses whose leaders are willing to embrace a global mindset will be best placed to leverage new technologies, build agility and stand out on the global stage.

For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.