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The early 2020s sparked an unprecedented hiring frenzy.
With talent in short supply and record-breaking funding, companies engaged in fierce bidding wars, driving salaries and benefits to all-time highs, especially in the booming tech sector.
However, as economic uncertainty grew and overhiring caught up with companies, the tides turned.
A wave of mass layoffs reshaped the job market, putting employers back in control. In the tech industry, for instance, over 500,000 tech workers were laid off between 2022 - 2024. Meanwhile, as companies restructured their hiring strategies, geopolitical shifts fueled by rising nationalism added another layer of complexity, particularly for businesses relying on cross-border talent.
Although global hiring remains viable, it is now more complex, particularly for small and mid-sized businesses (SMBs) now competing against corporate giants expanding into emerging markets like MENA and the Global South.
Despite these challenges, SMBs still have a fighting chance to attract top global talent. The question is: how? In this article, we explore actionable strategies, backed by insights from HR leaders at Africhange and RemotePass, organizations championing global talent mobility.
Trends Shaping the New Global Talent Market
Three major hiring trends are defining the talent market and influencing SMB recruitment strategies:
1. The Rise of Skills-Based Hiring
More companies, including SMBs, are embracing skills-based hiring, recognizing that academic credentials don’t always reflect real-world capabilities. This shift is particularly evident in the tech industry, where coding bootcamps and alternative education programs have become key talent pipelines. In fact, 72% of hiring managers report that bootcamp graduates outperform traditionally educated candidates.
Sayo Alao, Talent Acquisition and HR Manager at RemotePass, highlights that SMBs have a distinct advantage in this trend because they are more flexible in their hiring criteria than large corporations.
"Unlike bigger companies that prioritize degrees, SMBs have discovered a goldmine of talent—individuals with grit, passion, and problem-solving skills that extend beyond formal education," says Alao.
As businesses compete for top talent in 2025 and beyond, real-world experience and problem-solving ability will take precedence over academic backgrounds, making skills-based hiring a powerful strategy for SMBs looking to build high-performing teams.
2. Evolution of Work Models
As hybrid work becomes the new normal, professionals are prioritizing flexibility when evaluating job opportunities. Stanford economist Nicholas Bloom reports that most professionals work in a hybrid setup, typically spending three days a week in the office. Gallup research further supports this, showing that 60% of remote-capable employees prefer hybrid work over fully remote or fully on-site roles.
Yet, many large companies are pushing back against remote work, requiring employees to return to the office. This presents an opportunity for SMBs.
"Despite the fact that many founders want employees in the office, people are tilting towards organizations that offer hybrid or remote options," says Emmanuel Faith, HR Manager at Africhange. "Proactive founders who prioritize productivity over presence will win the talent war."
3. Intensifying Competition for Talent
The "war for talent" has become a global phenomenon, with a limited supply of workers possessing in-demand skills leading to heightened competition among employers. This trend is expected to intensify due to demographic shifts, such as declining birth rates and aging populations, potentially resulting in a global talent shortage of 85 million people by 2030.
This talent shortage presents a unique opportunity for SMBs to attract skilled professionals who might be overlooked by larger corporations. For instance, some smaller firms in the UK are partnering with non-traditional talent pools, such as training programs within prisons, to address skills shortages effectively.
Challenges SMBs Face in Tapping into These Trends
Despite the opportunities available, SMBs face several challenges when competing for top global talent:
1. Competing with Larger Corporations
Large companies offer stability, extensive benefits, and structured career paths, making them highly attractive to job seekers. SMBs, in contrast, must differentiate themselves by emphasizing their unique strengths, such as agility, meaningful work, and direct access to leadership.
Emmanuel Faith notes: “Top talent often chooses larger companies to boost their resumes. Employer branding is critical for SMBs looking to compete.”
2. Weak Employer Branding
A lack of strong employer branding makes it difficult for SMBs to attract top candidates. Large corporations often dominate the narrative, making it crucial for SMBs to showcase their work culture, mission, and career growth opportunities through compelling storytelling, employee advocacy, and social proof.
3. Employee Retention in a Competitive Market
Attracting top talent is only half the battle, retaining them is equally challenging. Without competitive compensation, clear career progression, and a strong workplace culture, employees may be lured away by larger firms offering better financial packages and stability.
4. Limited HR and Recruitment Resources
Unlike larger enterprises with dedicated talent acquisition teams and expansive budgets, SMBs often operate with lean HR teams. This makes sourcing, evaluating, and onboarding top-tier candidates more challenging, leading to longer hiring cycles and missed opportunities.
How SMBs Can Overcome These Challenges
1. Design a Competitive Compensation Package Beyond Salary
Instead of focusing solely on salary, an area where large corporations often have the upper hand, SMBs should build a compelling Employer Value Proposition (EVP) that emphasizes total rewards. Emmanuel Faith advises that SMBs should craft their EVP “as they would market to investors,” positioning the company’s mission, impact, and unique employee benefits as selling points.
A strong EVP includes:
- Performance-based incentives such as bonuses and profit-sharing.
- Learning and development budgets for upskilling, mentorship, and certifications.
- Wellness and mental health programs that go beyond traditional health benefits.
- Personalized perks like childcare support, co-working stipends, or even sabbaticals.
2. Emphasize Workplace Flexibility and Employee Autonomy
Candidates increasingly favor hybrid and remote work options when choosing employers. As Emmanuel Faith puts it, “Proactive founders prioritize presence over productivity,” meaning employees gravitate toward companies that trust them to manage their time and deliver results.
For SMBs, this means:
- Offering remote-first or hybrid models that allow employees to work from anywhere.
- Shifting from micromanagement to outcome-based performance measurement.
- Investing in digital collaboration tools to ensure seamless teamwork across time zones.
SMBs that embrace flexibility will appeal to global talent and gain access to a more diverse pool of skilled professionals.
3. Offer Equity and Growth Opportunities
Large corporations may offer stability, but SMBs have a unique advantage: faster career growth and a sense of ownership.
Sayo Alao emphasizes that “the opportunity to not only earn for the work you do but also get a piece of the company” is a powerful talent magnet. Offering stock options, ESOPs, or revenue-sharing gives employees a direct stake in the company’s success, driving engagement and long-term commitment.
Beyond equity, SMBs can enhance their appeal by:
- Creating clear career progression paths with leadership opportunities.
- Encouraging cross-functional projects that allow employees to expand their skill sets.
- Fostering a culture of innovation where employees’ ideas directly impact company strategy.
4. Build a Global Payroll System to Support International Hiring
With 58% of small businesses already hiring internationally, accessing global talent is a competitive necessity. However, managing cross-border payroll, tax compliance, and local labor laws remains a major challenge for SMBs.
Sayo Alao highlights that “this is where RemotePass becomes an indispensable partner for SMBs,” offering a seamless solution to navigate global hiring complexities.
To scale international hiring successfully, SMBs should:
- Use Employer of Record (EOR) services to handle compliance and tax regulations.
- Implement seamless multi-currency payroll systems to pay employees in their local or preferred currency.
- Standardize benefits packages to provide equitable perks for global teams.
A well-structured global payroll system ensures legal compliance and strengthens employer trust and brand reputation in international markets.
5. Ensure Fairness and Prevent Pay Disparity Among Global Teams
One of the biggest challenges in global hiring is pay disparity, especially when employees in different regions receive vastly different salaries for the same role.
Companies take different approaches: some localize pay based on the cost of living, while others use a universal benchmark. Emmanuel Faith advocates for “pay equalization—where everyone earns a unified, globally acceptable currency” to prevent resentment and migration-driven attrition.
To ensure fairness, SMBs can:
- Conduct market research on regional salary benchmarks.
- Offer a transparent pay structure that aligns with both company goals and employee expectations.
- Provide location-based stipends (e.g., cost-of-living adjustments for employees in high-expense regions).
This approach fosters a sense of fairness and ensures that global employees feel equally valued, regardless of their location.
6. Adapt to Future Talent Needs
The hiring landscape is evolving rapidly, and SMBs that stay ahead of trends will have a competitive advantage. This means:
- Investing in continuous learning – Provide employees with access to courses, certifications, and mentorship programs to keep skills relevant.
- Leveraging AI and predictive analytics – Identify future skill gaps and proactively address talent shortages.
- Staying ahead of labor law changes – Monitor evolving regulations to ensure compliance and avoid costly legal risks.
Organizations that prioritize adaptability and employee development will not only attract top talent but also future-proof their workforce for years to come.
From Underdog to Talent Magnet
SMBs may not have the deep pockets of Fortune 500 companies, but they have agility, innovation, and the ability to offer unique benefits that set them apart. With tools like RemotePass, they can compete and win in the global talent market.
RemotePass provides an all-in-one platform that handles everything from onboarding and setup to HR management and compliant payroll for remote contractors and employees. This comprehensive solution simplifies global hiring processes, ensuring compliance with local laws and streamlining payments.
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