Why Local-Only Hiring Is a Losing Game

Every CEO I talk to says the same thing: “We can’t find enough qualified people.” Yet, most are still fighting over the same shrinking talent pool, not realizing the game has fundamentally changed.

I should mention something that keeps coming up in these conversations. Right now, 40% of your employees are actively shopping for a new job. When they leave, they’ll get an average 9.7% bump in pay while you eat the cost of turnover. This cycle is both expensive and exhausting.

But what if this goes deeper than just another post-pandemic disruption? We might be looking at the beginning of a decade-long talent drought that will force every company to rethink where and how they source talent.

As the CEO of DOXA Talent®, where we manage over 800 team members across six countries without a single office, I’ve watched demographic forces reshaping global talent markets. The data tells a story that should concern every CEO. The math simply doesn’t work anymore for local-only hiring.

Related: Why the Smartest Entrepreneurs Are Tapping Into This Unexpected Talent Pool

The demographic reality check

Most business leaders understand that hiring is tough right now, but few grasp how permanent this shift will be. Birth rates have been sliding since the post-industrial era, with the global fertility rate falling from roughly 4.5-7 children per family a century ago to just 2.4 in 2025.

In the U.S., this rate has plummeted to 1.79, well below the 2.1 needed just to keep the population stable. We’re not talking about speculation here, just simple mathematics. Fewer babies today means fewer workers tomorrow.

Look at population pyramids and the story becomes clear. A healthy, growing nation has a pyramid shape with lots of young people at the base. But across Europe, Asia and the Americas, these pyramids are flipping upside down, with more seniors than toddlers. Even if society suddenly started having more babies tomorrow, it would take two decades to impact the workforce.

The math is brutal and undeniable. You’re competing for talent from a pool that’s literally shrinking every year.

What workers actually want now

While demographics create the supply problem, changing worker expectations create a demand problem. Post-Covid, McKinsey research shows the workforce has split into five distinct groups.

Traditionalists value career advancement, but their numbers are dwindling. Caretakers prioritize flexibility for family responsibilities. Do-it-yourselfers value autonomy and location independence. Idealists seek purpose and development. Support-seekers value employers that provide wellness resources.

What they all have in common is a dramatic shift in work location preferences. According to the U.S. Career Institute, only 5% of workers want to be in an office full-time.

Many companies respond by compromising with hybrid policies, but this gives us the worst of both worlds. We end up paying for both a physical office and remote setups without being optimized for either. It’s like paying a mortgage on a house you use just one day a week.

Why global talent is your only real option

The companies that win will be those that see these twin forces (demographic shifts and worker expectations) as an opportunity rather than a crisis. Global talent solves both problems at once.

Remote work delivers what employees want most these days — flexibility, more time with family and freedom from commuting. At DOXA Talent®, our team members in the Philippines save an average of 3.5 hours daily by eliminating commuting. That’s 38 extra days yearly they get back with family, which explains why our retention stays strong despite competitors occasionally offering slightly higher compensation.

For employers, going global opens up a much larger talent pool. Small and mid-size companies can suddenly compete against larger organizations that are demanding returns to the office. When I ran a company in Seattle, we competed for talent against Microsoft, Amazon and Boeing. We couldn’t match their salaries, but we could offer flexibility and a genuine sense of purpose, which proved equally valuable.

Related: Why Remote Work and Offshore Talent Are Becoming Essential for Businesses

How to handle time zone differences

Time zones present a legitimate challenge for global teams, but we’ve found a remarkably effective solution in what we call the split shift.

In this model, team members in places like the Philippines might start at 4:00 a.m. their time (2:00 p.m. in the U.S. Pacific time), creating a 3-4 hour overlap for collaborative work. When U.S. team members end their day, their international colleagues continue working, creating a 24-hour productivity cycle.

This approach saves international team members from the health problems of working all night while keeping projects moving around the clock. It transforms time zones from an obstacle into an advantage.

Where to find specific talent

Each region has developed distinct strengths based on education systems, cultural factors and economic development.

India excels at finance and technical development. The Philippines is the gold standard for customer experience and back-office support. Colombia offers excellent nearshore opportunities for time zone alignment. Vietnam and Kenya shine in data labeling, coding and design.

Finding the right talent wherever it thrives is more important than simply chasing the lowest labor costs.

Why AI makes global talent essential

The final piece of this strategic puzzle is AI readiness. Every significant technological breakthrough in history, from the printing press to the internet, sparked fears of mass unemployment, but each time, productivity and job creation increased overall.

Generative AI will likely follow the same pattern. For firms that adopt early, it’s a tailwind. For companies that lag behind, it becomes an existential threat. The human-in-the-loop future will see AI handling volume while humans provide oversight, judgment and relational nuance.

This makes a global talent strategy even more critical. You’ll need diverse teams that can manage and oversee AI systems, not just execute basic tasks. When you combine AI capabilities with global talent, you create advantages your locally constrained competitors can’t match.

Related: Why U.S. Businesses Are Turning to Global Talent More Than Ever

The time to act is now

The talent shortage we’re experiencing isn’t temporary. We’re facing a structural reality that will define business for the next decade. Companies that recognize this and adapt fastest will create a huge competitive advantage.

Your workforce strategy must go global, not because it’s trendy, but because it’s the only sustainable solution to the demographic and workplace transformations reshaping our world. While your competitors spend their time debating hybrid policies and fishing in the same shrinking local talent pools, you could be building a global talent machine that gives you access to millions of qualified, dedicated future team members across the world.

What matters now is how quickly you can adapt before your competitors figure out the game has changed. The math doesn’t lie, and the math says local-only hiring is a losing game.

Every CEO I talk to says the same thing: “We can’t find enough qualified people.” Yet, most are still fighting over the same shrinking talent pool, not realizing the game has fundamentally changed.

I should mention something that keeps coming up in these conversations. Right now, 40% of your employees are actively shopping for a new job. When they leave, they’ll get an average 9.7% bump in pay while you eat the cost of turnover. This cycle is both expensive and exhausting.