5 Things to Consider When Recruiting in the US

5 Things to Consider When Recruiting in the US

 

With relatively low saturation, higher margins, and a thriving job market, the US recruitment market is continuing to grow and attract international recruiters. Before diving headfirst into recruiting in the US market, it’s important to consider a few things, such as the complexities that come with compliance and employment legislation in the US, and the intricate US tax system.

 

Here’s 5 things to consider when recruiting in the US: 

 

1. The US operates like 50 different countries

 

As you begin recruiting in the US, it is important to understand that it functions more like 50 individual countries in many aspects, including taxation and employment laws. The US is a federal republic, meaning that power is divided between a central government and individual state governments. Each of the 50 US states has its own legislation and the autonomy to enforce unique employment laws. Just a few examples of US employment laws that can vary state-to-state: paid leave policies, pay transparency, and minimum wage 

 

2. US Federal labor regulations

 

Recruiters should aim to have a basic understanding of federal labor laws in the US. The Fair Labor Standards Act (FLSA) is one huge part of federal employment legislation in the US. It establishes minimum wage, overtime pay, and child labor standards, ensuring that employees are fairly compensated for their work. Recruiters should be aware of these requirements to ensure compliance with wage and hour regulations, accurately classify employees as exempt or non-exempt, and properly document and calculate overtime pay, along with keeping other records.  

Keep in mind that the FLSA is only one part of the puzzle that is federal labor laws in the US. The US Department of Labor (DOL) imposes more than 180 federal laws. You can read summaries of some of the major US labor laws here, and its good practice to refer to the DOL website for detailed information on a variety of US labor topics. 

It’s also worth noting that employment laws in the US, both at the Federal and state levels, are always evolving, so as we mention in point #5- it’s important to lean on US legal and compliance professionals for guidance. 

 

3. The US tax system can be complex

 

The US tax system can be complex to say the least, especially for business owners who are hiring and recruiting in the US. What’s important to know is that the US tax system operates on a multi-level structure, with taxes imposed at the federal, state, and local levels. Each jurisdiction has its own set of rules, rates, and deductions, which can vary significantly from one location to another. If you’re recruiting in the US, it’s beneficial to stay informed about tax laws specific to the location in which you’re operating.

 

4. Cultural differences and terminology

 

It may go without being said for a lot of international recruiters, but work culture and common terminology in the US can vary significantly from other countries, such as the UK. It’s essential for effective communication with US candidates and customers to understand the differences between common employment terminology and workplace culture and expectations

Something else to consider when recruiting in the US is that cultural nuances vary from region to region. The US is a large country, with differing accents and terminology throughout. 

 

5. Lean on US Experts for advice

 

We’ve already covered how complex the US employment landscape and tax system can be for recruiters, so we highly recommend working with trusted legal, accounting, and compliance professionals when recruiting in the US. 

Partnering with a legal professional in the US will allow you to gain confidence when growing your business, knowing you’re staying compliant and up to date with any evolving employment laws at the federal, state, and local levels. A qualified compliance partner, such as an employer of record (EOR), can help with contracts, reviewing employment agreements, and offering guidance on best practices, both having to do with US compliance and recruitment. An accounting professional will maximize financial efficiency in the profitable US and make sure to adhere to all tax regulations wherever you operate. 

Whether you’re already recruiting in the US, or just considering it, it’s important to know it doesn’t have to be as overwhelming as it’s made out to be. With the right partners and processes in place, you can find great success in the US!

 

Disclaimer: This post is provided for informational purposes and should not be considered legal advice, the final word on this topic or a political opinion.