The local talent model is broken. Here’s what to do instead.

If you’ve tried to hire for a tech, operations or customer-facing role in the past year, you already know the reality. It's taking longer, costing more and often leading to a dead end.

Right now, in the US, there are over 8.5 million open jobs. It takes more than 40 days on average to fill a mid-level role. Salaries have jumped by up to 35 percent since 2020. And nearly one in three employees is expected to switch jobs this year. It is no longer just a rough hiring season. It is a structural challenge that is reshaping how companies build teams.

At the same time, a quiet shift is happening. More and more businesses are choosing to hire globally. And they are not doing it to cut corners. They are doing it to find the right people faster, stay competitive, and build lean, resilient teams.

So, let’s talk about why this shift matters, and why now might be the time for your company to rethink the way it hires.

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Why the traditional model is falling apart

The US talent market is under pressure from all sides. As the workforce ages, by 2030, every Baby Boomer will be over the age of 65. Younger generations are not replacing them quickly enough, and labor force participation among working-age men continues to decline.

There is a growing mismatch between what schools teach and what companies need. Most college graduates still need up to a year to be fully productive in technical roles. And in fast-moving fields like cybersecurity or AI, demand is outpacing supply.

Add to that the burnout and exits we have seen since 2020. Sectors like education, healthcare and customer service have lost significant chunks of their workforce. Many of those workers have not returned.

If you are hiring in a smaller city, or asking people to come into the office, your options get even narrower. Skilled professionals are still clustered in places like New York, Austin or San Francisco. That leaves everyone else fishing in a shrinking talent pool.

None of this is your fault. But it is your problem.

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A new standard is emerging

Remote work used to be the exception. Now it is the starting point. And that shift has quietly opened the door to global hiring.

Companies no longer need their team to be in the same city. Or even the same country. That change is already playing out.

GitLab runs with employees in over 65 countries. Zapier, Atlassian and Shopify are doing the same. They are not just managing remote teams. They are building businesses around them.

And they are doing it well.

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Where companies are hiring now

There are two regions seeing the most growth right now for cross-border hiring: APAC and Latin America.

In Asia Pacific

1. India remains a go-to for experienced developers, analysts and finance professionals. The talent pool is massive, English fluency is strong and many teams already work with US clients.
2. The Philippines has become known for customer support and admin roles. Its professionals are English-proficient, used to real-time collaboration, and highly responsive.
3. Vietnam is an emerging star. With a growing number of STEM grads and a booming tech scene, it offers high-quality dev and product talent, with lower competition than more saturated markets.

In these countries, salaries are often 40 to 70 percent lower than in the US. But it is not about saving money. It is about finding the right skills, faster and building teams that can deliver from day one.

In Latin America

1. Mexico offers strong technical talent and time zone overlap, which makes it ideal for collaboration.
2. Costa Rica stands out for its political stability, English fluency and skilled back-office teams.
3. Brazil is home to one of the largest tech workforces in the region, especially strong in software engineering and design.

LATAM also brings cultural alignment and real-time communication. For teams that value daily collaboration, that matters.

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What about the legal requirement?

Hiring someone in another country is not as simple as sending them an offer letter. There are labor laws, tax rules, and real risks around misclassification and permanent establishment.

If you call someone a contractor but treat them like an employee, you could face fines and back taxes. If you hire long-term in another country without the right setup, you could trigger tax obligations there.

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So, what are your options?

You can hire directly as a contractor. It’s fast and easy, but risky if the role is full-time. You can set up a local entity, but that takes time, money and legal infrastructure.

Or, you can work with an Employer of Record (EOR). This is where Out of Office by CXC comes in.

An EOR acts as the legal employer on your behalf. They handle payroll, benefits, tax compliance and labor law so you can focus on building your team.

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What makes it work?

When global hiring works well, it looks like this:

• You find great talent in the regions that fit your needs and budget

• You get them onboarded quickly and compliantly

• You don’t spend months setting up foreign entities or dealing with red tape

• You scale your team with less risk and more speed

This is not just for big tech firms anymore. It is for any company trying to grow smartly, hire better and stay competitive in a tight market.

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Ready to see what’s possible?

You do not need to build an international HR department to get started. You just need the right partner.

If you are curious about global hiring but not sure where to start, the “Hiring globally: What U.S. companies need to know” guide by Out of Office is a great first step.

It is clear, practical and full of insights that will help you make smarter decisions.

Because at the end of the day, the question is not whether you can afford to go global.

It is whether you can afford not to.

Download the guide now and take the first step toward building a smarter, more competitive global team.

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