4 Reasons to Recruit in the US Market

1. Higher margins/markups

The average margins for recruiting in the US are often higher than other countries, such as the UK, because of the larger overall economy and a higher demand for specialized talent. By capitalizing on the higher margins available in the US, international recruitment companies can gain a competitive edge and stay resilient in changing economies.

Margins or markups can vary depending on the company size, the seniority of the worker, and the industry, but there is no doubt that there is a lot of profit to be made in the US market.

2. Larger market size, less saturation

The US leads the globe with over $20 trillion GDP annually. California’s GDP alone surpasses the entire UK. How does this one-of-a-kind, robust economy impact the US recruitment industry?

The US recruitment market is both profitable and thriving but is less saturated than the mature recruitment market in the UK.

Let’s break it down:

There are approximately 12,000 recruitment companies in the US. This is one recruitment company for every 29,000 people in the US. The UK has approximately 28,000 recruitment companies, which means there is one recruitment company for every 2,400 people in the UK.

It’s clear that the US recruitment market is relatively much less saturated than the UK recruitment market. Recruiting in the US market will give UK recruitment companies an obvious advantage, as they can gain access to many more opportunities to find talent in the states; with less competition than in the UK.

View US staffing industry statistics

3. Large, diverse talent pool

The US is the third most populous country in the world after China and India. The adult population in the US also ranks among the most educated in the world, with approximately one-third of US adults having obtained at least a bachelor’s degree.

With such a large, educated talent pool in the US, recruiters have a better chance of finding talent for their end customers; regardless of their size, location or industry.

Not only is there a lot of talent, but the US workforce is diverse. The US workforce is stronger because it is made up of various ethnic and racial groups, and a high proportion of immigrants. With a diverse population comes an innovative workforce with improved problem-solving, a wider range of perspectives, unique ways of doing things, and a better representation of customer demographics.

Having access to the unparalleled US talent pool can make the process of finding the ideal candidate for any role much easier.

4. It’s easy to recruit in the US with an EOR- No US entity needed

An employer of record (EOR) can help make it easy to recruit in the US! Working with an EOR allows an international recruitment company to hire US contractors or internal employees without a US entity. An EOR will take on the legal and administrative burden of hiring US workers for a recruitment company.

US compliance can be a headache for international recruitment companies looking to capitalize on the US market. An EOR operates in accordance with all laws and is a valuable resource when it comes to offering guidance on complying with US local laws on a state or federal level.

Learn how an EOR Ensures Compliance

Along with compliance, an EOR can help an international recruitment company scale their US operations without the need for an internal team and administrative infrastructure. When it comes to hiring in the US, an EOR can help international recruiters reduce overhead and streamline processes for all their engagements across the 50 states.

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.