Tariffs and talent strategy: The unseen impact

This article is an excerpt from Riviera Partners’ Future of Tech Leadership 2025 report, based on insights from more than 1,000 senior technology leaders. Download the full report for complete data, charts, and frameworks.

Geopolitics meets talent strategy

Hiring strategy isn’t just shaped by company growth needs anymore — it’s increasingly driven by global risk factors. Tariffs, political instability, and economic volatility are all forcing companies to rethink where they build their teams, not just who they hire.

For U.S.-based firms, the impact of tariffs is especially stark: 40% say tariff policies directly influenced their decision to reshore tech roles, even when it meant higher labor costs.

Tariffs influence on company’s decision to reshore

“40% of U.S.-based companies say tariffs directly influenced their decision to reshore tech roles.”

The rise of the dual-track strategy

Rather than choosing between onshore and offshore, many organizations are embracing a two-speed hiring model:

Reshoring for resilience → bringing critical roles back home to reduce risk and ensure stability.
Expanding globally for efficiency → maintaining international teams for specialized skills and cost advantages.

Nearly 45% of companies are still expanding international teams, even as reshoring grows. For most, it’s about balance: building resilient core functions domestically while tapping global markets for scale.

The companies that are navigating this shift best? They’re the ones that already have stronger leadership infrastructure in place.

Primary reasons driving global or nearshoring hiring strategy

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High-readiness companies navigate risk better

According to Riviera’s Organizational Design Readiness Index, high-readiness companies consistently outperform when it comes to adapting their hiring strategies to global pressures:

37% are reshoring roles due to tariffs (vs. 26% overall)
45% are actively growing international teams (vs. 36% overall)
68% are shifting hiring to politically stable regions (vs. 43% overall)

The message is clear: readiness translates to resilience. Companies with more mature leadership structures and hiring infrastructure are better able to absorb global shocks and keep scaling.

FAQ: Tariffs & talent

Why are tariffs affecting tech hiring decisions?

Because they directly increase costs and risks for overseas roles, pushing companies to consider reshoring even at higher expense.

What is a “dual-track” hiring strategy?

Balancing reshoring for stability with offshore/nearshore teams for cost and scale efficiency.

How can companies mitigate global risk in hiring?

By diversifying across regions, centralizing leadership decisions, and ensuring executive-level ownership of talent strategy.

This article is an excerpt from Riviera Partners’ Future of Tech Leadership 2025 report, based on insights from more than 1,000 senior technology leaders. To explore the full findings, charts, and frameworks, download the complete report here.

Want to know where your company stands? Take our AI Organizational Readiness Quiz to get your custom score and see how you compare to peers across VC, PE, and public companies.

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