There has been increasing interest among Americans in emigrating from their country to other parts of the world. In November 2024, Google Trends revealed an increase in online searches on how to move to Europe and other parts of the world. This desire to emigrate among Americans is being driven by the recent political changes, rising costs of living, healthcare expenses and a pursuit of better work-life balance.
In 2024, more than 6,100 Americans applied for British citizenship, more than in previous years. A high volume of applications was submitted in the last quarter of the year. This has been the highest since 2004, according to the UK’s Home Office data. A CNN report also revealed that Bureaucracy.es, an immigration services site that helps Americans moving to Spain with the visa application process, has seen over 300% more clients book consultations since November 2024.
With this exodus, American companies will likely see many top talent leave. While some of these Americans will seek new job opportunities in their host countries, a significant percentage will continue to work remotely for American companies.
In 2024, more than 6,100 Americans applied for British citizenship, more than in previous years. A high volume of applications was submitted in the last quarter of the year. This has been the highest since 2004, according to the UK’s Home Office data. A CNN report also revealed that Bureaucracy.es, an immigration services site that helps Americans moving to Spain with the visa application process, has seen over 300% more clients book consultations since November 2024.
With this exodus, American companies will likely see many top talent leave. While some of these Americans will seek new job opportunities in their host countries, a significant percentage will continue to work remotely for American companies.
Why are people leaving America?
The political climate
Many Americans, including various minorities, have felt disenfranchised in recent times, and there have been concerns about civil liberties and social justice. This has prompted a rise in the number of people seeking to leave the country. According to a Newsweek report, about 47% of residents in Los Angeles expressed interest in leaving the country, while 35% of New Yorkers said the same.
H1B visa restrictions and immigration policies
Many highly skilled immigrants in America depend on the H1B visa as a pathway to legally stay in America, especially after studying in the country. According to Pew Research, 2018 saw H-1B visa denial rates as high as 15%, which included 24% of new applications for initial employment and 12% of renewal applications for continuing employment. However, in 2022, the denial rate of the H-1B visa dropped to 2%, the lowest since 2009. Today, many immigrants believe the success of their H-1B visa applications could be jeopardized due to changes in immigration policies. Immigration policies and laws have been tightened recently, affecting immigrants' long-term residency plans. This is a significant reason for many to have a plan B, which is moving to another country.
Work culture shift
In the US, corporate giants such as Amazon, AT&T, Goldman Sachs and even the Federal Government have mandated employees to return to office fully, ending remote and hybrid work. According to FlexIndex, which tracks workplace strategies of over 10,000 US companies, 31% of employers were fully remote in 2023, but only 25% remained remote at the end of 2024. This trend has not gone down well with thousands of employees who believe hybrid and remote work gives them a better work-life balance. This is why some have migrated to countries like Spain, Portugal, Thailand and Brazil, where they can work flexibly.
Cost of living crisis and quality of life
Most Americans have experienced rising living costs due to high inflation in the last few years. People pay more for food, housing and other expenses such as insurance and loan interest. Over 21 million renter households in the US spent more than 30% of their income on housing, representing almost half (49.7%) of the 42.5 million households for which the rent burden is calculated. Many Americans also seek a better quality of life, including safety, a more relaxed pace, access to nature, and cultural experiences available in other countries.
Americans work remotely in other parts of the world
There are many options when it comes to places Americans can migrate to. Statista shows that about 166,000 Americans live and work in the UK as of 2021. According to a Forbes report, Spain hosts more than 41,000 Americans as of 2024. Some have come to work remotely, while some came for retirement. More than 10,000 US citizens reside in Portugal, and the number has grown in recent years, increasing by 239% from 2017 to 2022. Many work remotely for US-based companies in these countries.
Challenges for US-based companies that hire remotely
Employees find many benefits in relocating, but companies may face many challenges when hiring and managing employees in other countries. These challenges include:
Legal and regulatory compliance issues
All countries have labor laws and employment protections to which companies must adhere. For example, Spanish employment laws are undergoing significant changes, such as reducing the workweek to 37.5 hours and increasing the minimum wage to €1,184 monthly. Companies must keep abreast of such changes to avoid penalties.
Payroll and tax differences
Tax laws determine the payroll deductions and taxes employees are required to pay. These laws vary across countries and, when not managed properly, can lead to under- or over-deductions, which can cause problems for the company and employees.
Cultural and operational differences
Cultural differences in communication can create conflict in the workplace. Time zone differences can also make it difficult to coordinate work schedules. All these can create problems with engagement, productivity, and retention.
Benefits of EOR
Ease in hiring
Hiring internationally is usually cumbersome, with companies having to navigate local employment laws, exchange rates for salaries, language barriers, and other issues. Using an EOR, such as WorkMotion, can reduce all costs related to HR operations and other hiring expenses. An EOR, such as WorkMotion, has the necessary expertise to hire the best candidates.
Cost savings
Using an EOR can save 30% to 50% on administrative costs. These include setting up legal entities in other countries, office administrative costs, and penalties arising from missteps in foreign markets.
Manage benefits and mandatory contributions
EORs ensure that employees are provided with all benefits mandated by law, such as pensions, healthcare, and social contributions. This will prevent any issues and penalties that may occur with non-compliance.
Manage payroll and taxes
EORS can seamlessly manage salary payments across different jurisdictions without hitches. They also ensure that the right taxes are deducted, removing the payroll administrative burden from the employer. EORs maintain a payroll accuracy rate of over 99%, minimizing errors and delays.
Ensure legal compliance
Using an EOR reduces the legal risks of employment laws because it ensures that contacts align with the country’s labor laws and that employees are properly classified. EORs can reduce the risk of legal disputes related to employment by approximately 70%.
Impact of EORs on business and talent retention
EORs play a significant role in globalization. One major impact is the rise of “digital nomads”, which has been made possible and effective through cross-border hiring facilitated by EORs. Cross-border hiring is said to have increased by 30% because of EORs.
Many European countries, including Portugal, Spain, France, and Malta, have created new laws to encourage hiring across borders and accommodate individuals who want to live and work remotely. More countries are expected to adopt laws that benefit remote work and globalization.
Many European countries, including Portugal, Spain, France, and Malta, have created new laws to encourage hiring across borders and accommodate individuals who want to live and work remotely. More countries are expected to adopt laws that benefit remote work and globalization.
Navigating relocation with an EOR
The rise of US talent relocating abroad is reshaping the workforce, driven by political, economic, and work-life balance factors. While this trend presents challenges for American companies, Employer of Record (EOR) solutions provide a seamless way to retain top talent and navigate complex international hiring landscapes.
By handling compliance, payroll, and legal obligations, EORs enable businesses to focus on growth while offering employees the flexibility they seek. As globalization and remote work continue to evolve, adopting EOR solutions will be crucial for companies looking to stay competitive in the new world of work.
As an employer, you mustn’t lose valuable talent to relocation. You can adapt your business to retain top talent and remain competitive. Talk to our experts today and discover how WorkMotion’s EOR solutions can help you retain your employees anywhere they go in the world.
By handling compliance, payroll, and legal obligations, EORs enable businesses to focus on growth while offering employees the flexibility they seek. As globalization and remote work continue to evolve, adopting EOR solutions will be crucial for companies looking to stay competitive in the new world of work.
As an employer, you mustn’t lose valuable talent to relocation. You can adapt your business to retain top talent and remain competitive. Talk to our experts today and discover how WorkMotion’s EOR solutions can help you retain your employees anywhere they go in the world.
Author Bio:
Adejoke Adeboyejo is an experienced HR professional who writes about HR and the role of technology in human resources.
