The Land of Recruitment Opportunity

 

The North American staffing market presents a fantastic opportunity for UK staffing firms  looking to expand their horizons. The US staffing market is both dynamic and growing, while remaining less competitive than the market in the UK.

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Larger Market Opportunity

Less Competition

The US recruitment industry is thriving and is worth around $140-$170 billion dollars. It makes up approximately 30% of the global market share and is more than three times larger than the UK, which is worth around $45 billion.

Despite the enormous size of the US market, there are actually fewer recruitment agencies operating in the market, with roughly 25,000 agencies in the US compared to the 35,000 recruitment agencies operating in the UK.

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Higher Margins

Higher Margins

Profit margins in the US are often higher than that of the UK, although they still vary between sectors. Hourly contract roles in the US often have gross margins in excess of 30% which is substantially higher than in the UK. This means that if a worker's pay rate, including employer burdens, is $70 per hour, the bill rate to the end client can be $100 or even higher.

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Easy Client Expansion

Easy Client Expansion

Expanding into the US market is a common strategy for recruitment agencies with UK clients who also have job openings in the US. It's a reliable and quick method to boost revenue and profitability. By leveraging these clients, your agency can easily expand into the North American market, allowing you to build connections and establish yourself in this lucrative market.

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Overcoming Entry Hazards

Despite being a lucrative prospect, there are hurdles which stop UK recruiters from entering the North American staffing market.

The key challenges to be aware of are:

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Employment law

Complying with employment laws in the US can be challenging and daunting. There are varying state and local regulations which you need to comply with to ensure you are not leaving your organisation at risk. To navigate this complex landscape, many recruitment agencies enlist an Employer of Record (EOR), like Agile Partnering, to ensure compliance with employment laws for their contract workforce.

Physical Presence

Physical Presence

There are significant cost implications for setting up an office in the US. These include expenses for office space, furniture, equipment, utilities, insurance, and any necessary renovations. There is also a time cost with arranging visas for your employees who will be relocating to the US. You will need to engage with immigration lawyers and experts to ensure that you comply with the relevant legislation.

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Taxation

Understanding the difference between federal and state taxes is important when operating in the US. You must comply with tax regulations to avoid significant penalties. When dealing with international taxes, it's also very important to use billing strategies that balance revenue between entities based on where services are provided.

Funding

Funding

Managing ongoing payroll demands and having enough cash flow to cover expenses can hinder growth. It is essential to carefully manage cash flow, which includes optimizing payment terms with clients and exploring financing options to bridge the gaps between payroll demands and receivables.

Incorporation and State Registration

Incorporation and state registration

Avoiding legal, tax, regulatory, or compliance issues at the start is important when setting up your company.

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Agile Partnering EOR Services for UK Staffing Agencies

Our specialized Employer of Record services are designed to make the process of expanding into the US and Canadian recruitment markets as simple as possible. As the Employer of Record, we take on responsibility for your back-office administration , allowing our experts to ensure you are entirely compliant regardless of where you are making your placement. By using our services, you will benefit from reduced time-to-market, simplified legal and regulatory compliance, and streamlined payroll, taxation, and benefits administration.

Our back office solutions save you time and money, as well as reducing the need to have a physical presence in North America.

Back Office Solutions

By working with Agile, we’ve grown faster, reduced our business risk, and had more fun along the way. We fully expect to continue partnering with them as we scale up.

Andrew

Head of Sales Operations

Our Specialized Solutions

Partnering with us allows you access to our technology-enabled turnkey solutions and team of highly experienced experts. Our comprehensive suite of services are aimed at simplifying the complexities of US expansion and enabling you to focus on your core business – making placements.

Our specialized services include:

Payroll, Taxation, and Benefits Administration

The US and Canada have their own unique payroll and tax regulations that UK staffing firms need to comply with. By partnering with us, you can leverage our expertise and experience in managing US payroll and taxation, ensuring compliance and avoiding penalties.

We also take care of benefits administration, including health insurance, retirement plans, and other employee benefits which are mandatory within the US. This relieves you from the administrative burden of managing benefits programs while ensuring that you are entirely compliant with employees receiving the necessary coverage and support.

We also offer additional services such as payroll funding, accounts receivable, accounts payable, client contracting, and Certificates of Insurance (COIs) with some of our packages. These also give you peace of mind by ensuring improved cashflows while you expand your business.

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Compliance and Administration Support

Compliance with US laws and regulations can be difficult for recruiters expanding into the market from the UK. Leverage our expertise and experience to remove any uncertainty by ensuring that you  stay on the right side of federal, state, and local employment laws. We provide comprehensive compliance support, ensuring adherence to all applicable employment laws, regulations, and reporting requirements. This includes staying up-to-date with changes in legislation and implementing necessary adjustments to guarantee ongoing compliance.

We also provide administration support, handling tasks such as employee onboarding, record-keeping, and HR administration. By taking on these administrative burdens, we allow you to streamline your operations and focus on your core business activities.

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Client Contracting and Certificates of Insurance

When working with clients in the US, you will need to be able to navigate the complex contracting processes and provide certificates of insurance. We remove any uncertainty by taking responsibility for the on-boarding process, including finalizing client contracts and ensuring that all necessary terms and conditions are in place. We also provide insurance coverage and can provide certificates of insurance when required.

By outsourcing these responsibilities to Agile Partnering, you not only save time and effort, but you also ensure all contractual and insurance requirements are met. We make compliance fast, easy and stress free.

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Fast Entry and Scalable Solutions

Partnering with us as your Employer of Record offers significant cost and time saving, ensuring fast entry to market. Instead of paying for a physical office in the US, you leverage our infrastructure and expertise. We eliminate your need for office space, equipment, and local staff, resulting in substantial savings. We accelerate the rate in which you can access the market and start making your first placements. This can be as fast as a couple of days. Speak to us today to discuss your personalized solution and enter one of the most lucrative recruitment markets in the world.

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