UK to the US Market

Why Should UK Recruiters Enter The US Market in 2023?

 

There is an influx of UK recruitment companies who are expanding their operations and services to the US market in 2023. This comes as no surprise when considering there’s more money to be made in the massive recruitment market in the states, and increasing company resilience by expanding to new regions is more important than ever during uncertain economic times.

Let’s break down a few of the main reasons why UK recruiters should enter the US market in 2023!

 

Higher profit margins

 

One of the main benefits of recruiting in the US is the potential for higher margins/markups. The average margins for recruiting in the US may be higher than other countries, including the UK, due to the robust US economy, higher wages for workers, and a high demand for specialized talent in the states.

It’s important to keep in mind that margins/markups in the US can vary depending on a variety of factors, such as the industry and company you’re recruiting for and the seniority or position of the worker you’re placing. By capitalizing on higher margins/markups, UK recruiters can gain a profitable edge over competitors who solely recruit in the UK market.

 

Larger market size and less saturation 

 

With an annual GDP of $20 trillion+, the US leads the globe with a strong and relatively stable economy. California’s GDP alone is more than the entire UK.  Many states are also known to be business-friendly and supportive of small businesses, which may be another factor that encourages international recruiters to enter the market.

The  prominent and diverse staffing market in the states provides a significant growth opportunity for UK recruiters to expand their operations.  According to the American Staffing Association (ASA), 16 million temp and contract workers are placed annually by America’s staffing companies and 3 million temp and contract employees work for America’s staffing companies during an average week.

ASA goes on to note that staffing employees in the US work in various occupations throughout almost all sectors: 

  • 36% Industrial 
  • 24% Office–Clerical and Administrative 
  • 21% Professional–Managerial 
  • 11% Engineering, Information Technology, and Scientific 
  • 8% Health Care 

Explore the US staffing industry by sector 

Although the US staffing market is massive and impacts almost all sectors of the workforce, it is not as mature as the UK recruitment market. There are fewer recruitment companies in the US than in the UK, but there is a much larger workforce in the states. There is a lot of potential for UK recruiters to benefit from finding and placing talent in the states, as it is overall less saturated than in the UK.

 

Increase company resilience 

 

Recruiting across borders, especially in stable, profitable markets like the US, can help UK recruitment businesses remain resilient through economic downturns or changing local markets. Hiring in the states is also a great way to stand out in an otherwise saturated UK market and reduce dependence on a single region. With 50 states to choose from, all with their own individual, strong economies and varying regulations, UK recruiters can choose which region or state best serves them for expanding operations.

The US is an innovative country that is known to explore and adopt new technologies, while also having a significant cultural influence on global trends. Another benefit of recruiting in the states is that UK recruiters can stay on top of the latest recruitment trends and technologies, which can improve company best practices and increase resilience in all markets. 

 

Access the diverse US talent pool

 

When recruiting in the US market, UK recruiters can gain access to a new talent pool of millions that are seeking out roles in virtually all sectors. With a population of 334 million+ people in the US (approximately 68 million people living in the UK), it’s clear that there’s potential to find valuable candidates for clients within the states. Not only is the talent pool in the US large, but it’s extremely diverse with highly educated and skilled workers across various industries in all 50 states.

The diversity seen in the US workforce can be attributed to immigration and the fact that many international students choose to study and work in the states. With a robust educational system, including top-ranked universities and colleges, the US provides a prime market for recruiters to find the ideal candidate for clients; regardless of their size, location, or industry.

 

Are you a UK recruiter who wants to learn more about entering the US market?  Book a call with a US expansion and compliance expert

 

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.