UK companies are increasingly hiring outside their borders, attempting to capitalise on the massive global talent pool and strategic market advantage. One of the most popular countries for UK companies hiring abroad is, naturally, the US. The country shares a language; it produces world-class talent in several sectors like tech, marketing, engineering, etc.; and its consumer base is highly sought-after on the global stage.
Nevertheless, a UK company cannot enter the process blindly. It needs to understand the importance of compliance, as well as the legal, regulatory and cultural landscape in America. In this article, let’s review why UK companies benefit from American hires and walk through a few considerations to help you plan for the process.
Why hire in the US?
Some UK companies might naturally wonder, “Why hire across the pond when there’s a perfectly fine pool of talent right here in the British Isles.” That’s fair. However, consider these advantages of hiring in America as a UK company:
Market foothold and strategic location: The American consumer base is vast and diverse, a highly sought-after commodity for global businesses; establishing a presence in the US with local employees helps a business tap into that market potential. Further, the strategic location of an American employee base can help your company create highly beneficial networks and partnerships.
A staggering talent ecosystem: The US accounted for a staggering 30% of global staffing revenue in 2021. The sheer size and scope of talent in the country have no parallels elsewhere, with highly skilled workers in every industry, every specialisation, and every niche. Moreover, the country is a global locus for talent with skilled professionals from every corner of the globe establishing roots in the country’s several hubs. In short: if you need excellent talent, you’ll find it in the US.
At-will employment: The US runs on “at-will employment,” meaning professionals or their employers may terminate a contract without notice (a direct contrast to the UK). This means the vast talent pool is mobile, and you can easily scoop up the right candidate with the right offer.
Hiring the right way: Consideration and planning
For all its advantages, hiring in the US requires sober and thorough planning.
First, you must choose an employment structure. You can create an American subsidiary with a legal presence in the country, but this option takes a significant amount of time and resources. You can engage local contractors, but that leaves your American workforce vulnerable to high turnover.
The ideal option is to partner with an Employer of Record (EOR), which bypasses the need to establish a local entity, yet still allows you to hire employees. Essentially, EORs manage employment contracts, payroll, benefits administration, tax deductions, HR-related functions, and onboarding. This ensures that your company remains compliant and cushioned from risk.
With a sensible employment structure in place, you can turn to cultural considerations. Maintaining a happy US workforce involves understanding – and making provisions for – local customs and values. We recommend reviewing Pew Research‘s article “10 facts about American Workers,” a fantastic launching-off point for understanding American workers.
Hopefully, this pocket-sized guide to hiring US employees helps your UK company throughout the process. For more information, please consult the links above.
