McClaren claims it is becoming increasingly hard for Englishmen to succeed in their native country but urged them to look at Hodgson, who managed in Sweden, Switzerland, Italy, Denmark, the United Arab Emirates and Finland, before an impressive spell at Fulham prompted a move to Anfield.
He told FourFourTwo magazine: "I don't think British managers can compete for the top jobs at the present moment because they haven't got the experience of winning titles or playing in the Champions League.
"Why not go abroad? When foreign managers come to England, they often come with experience of winning things abroad.
"Young British managers have always looked to their home country to establish themselves but it's getting more and more difficult for them to come through now because of the influx of foreign managers.
"Roy Hodgson is a perfect example of someone who's left England to travel here, there and everywhere with all sorts of clubs and came back and established himself as a top manager. It's something to try to emulate."