British employers are facing mounting pressure from every angle. Rising wages, higher employer National Insurance contributions, and sweeping changes proposed in the Employment Rights Bill are significantly increasing the cost and complexity of hiring at home. For many firms, the result is not a strategic desire to move jobs overseas, but has become a commercial necessity.
According to offshoring specialist The Legends Agency, this shift is accelerating as businesses search for ways to remain agile and competitive in an increasingly difficult economic environment. Group CEO Alex Fenton says the trend reflects a growing gap between the intention behind employment policy and the financial reality companies are dealing with on the ground.
“While the Government’s recent employment policies are well-intentioned in protecting workers’ rights, they’ve had the unintended consequence of making UK hiring significantly more expensive and less flexible for businesses”.
Read the full article on Bdaily: “Rising wages and tax burden drive British jobs overseas”
Recent increases in minimum wage levels and employer National Insurance contributions have already pushed up the cost of domestic recruitment. The forthcoming Employment Rights Bill, which includes day-one employment rights and a shorter unfair dismissal qualifying period, is expected to add further pressure.
Additionally, businesses are contending with high operating costs and an uncertain economic outlook. This combination is forcing organisations to rethink traditional hiring models. Companies that would historically have recruited locally are now exploring alternative talent markets simply to maintain margins and protect growth.
Offshoring is no longer limited to large corporates or call-centre functions. The Legends Agency has seen a sharp rise in demand from sectors previously considered unlikely to move roles overseas, including construction and hospitality.
Back-office positions such as administrative support, rota management, sales support, customer service, and finance functions are increasingly being performed remotely by international teams. More than 100 South African professionals now support 15 UK companies in these industries through the agency alone: a clear signal that the model is becoming mainstream.
The speed of this shift is reflected in the company’s own growth. In April 2024, The Legends Agency was a £300,000 operation. Eighteen months later, it is on track for £8 million turnover in 2025.
South Africa has become one of the most attractive destinations for UK employers looking to control costs without compromising on quality. The country offers a highly educated, English-speaking workforce, strong cultural alignment with the UK, and near-perfect time-zone compatibility, enabling real-time collaboration during British working hours.
Crucially, employment costs remain significantly lower. Roles with average UK salaries of around £35,000 can be performed at a far more sustainable cost base, allowing businesses to reinvest in growth while maintaining service levels.
“Companies don’t want to move jobs overseas,” Fenton says. “But we’re now seeing roles relocate abroad in droves as firms are forced to make difficult decisions to remain competitive.”
The shift carries wider economic implications. If the roles currently being offshored were based in the UK, they would generate substantial income tax and National Insurance revenue for the Treasury. Instead, those jobs, and the associated tax base, are moving abroad.
Most businesses would still prefer to hire locally. Domestic recruitment supports the UK economy, strengthens company culture, and reduces operational complexity. However, when the cost of employing staff rises faster than revenue, survival becomes the priority.
“Businesses feel caught between rising operational costs and the need to stay viable,” Fenton says. “We’re witnessing this trend accelerate as organisations navigate an increasingly challenging economic landscape that, unfortunately, is pushing jobs abroad rather than creating them at home.”
Unless the gap between employment policy and commercial reality narrows, more UK firms are likely to build global teams, not by choice, but by necessity. And in a global hiring market, competitiveness will increasingly determine where the jobs of the future are created.
