Expanding your UK business into the US market presents exciting opportunities, but it also comes with unique challenges, particularly in hiring and managing a US workforce. This guide aims to demystify the US hiring process for UK companies, focusing on the numerous resources provided by the UK government. From understanding the US job market to navigating legal considerations and cultural differences, we’ll explore key aspects of US hiring. Moreover, we’ll delve into the extensive support available from various UK government departments and agencies designed to facilitate your company’s successful expansion across the Atlantic.
Understanding the US Job Market
The US job market differs significantly from the UK in several aspects. It’s generally more dynamic, with higher job mobility and a culture of frequent career changes. Networking plays a crucial role in hiring, and there’s a strong emphasis on specific skill sets and experience. The market is also highly competitive, especially for tech talent. Understanding these nuances is crucial for UK companies attracting top US talent. Researching industry-specific trends and regional variations is essential, as the job market can vary significantly across different states and cities. For example, the salary in a talent hub such as Raleigh, North Carolina, can be 25% lower for the same position and experience a candidate from Boston, Massachusetts, could command, due mainly to the cost of living.
Legal Considerations
Navigating US employment law is crucial for UK companies hiring in the States. Unlike the UK, most US employment is “at-will,” meaning either party can terminate the relationship without notice. Familiarize yourself with federal and state anti-discrimination regulations and understand the distinction between employees and independent contractors. Employee misclassification can result in significant fines and payment of back wages. Be aware that labor laws can vary significantly by state. Consulting with a US Expansion Advisor is highly recommended to ensure compliance.
For concise information on US employment regulations, visit the US Small Business Administration’s guide for small companies.
Recruitment Strategies
Effective recruitment in the US often involves a multi-pronged approach. Utilize popular US job boards like Indeed and LinkedIn, but also consider industry-specific platforms, such as Science Careers and Break Into Tech Sales. Partnering with US-based recruiters who understand the local market can be invaluable. Leverage professional networking events and industry conferences to build connections. When crafting job postings, highlight your company’s unique culture and any perks that set you apart from US competitors.
Department for Business and Trade Support
The Department for Business and Trade (DBT) offers comprehensive support for UK businesses expanding to the US. Their services include market research and intelligence, introductions to key US contacts and potential partners, guidance on local business practices and regulations, and support in attending trade shows and missions. They also provide access to a global network of trade advisers who can offer tailored support based on your company’s specific needs and expansion goals.
The DBT has developed peer-to-peer networking in several cities, such as the Great British Business Club – New York, co-founded by Fiona Macleod-Henschel, who, with more than three decades of UK/US international trade experience and now running her own consultancy, cites the benefits of such resources as:
For specific information on expanding to the US, consider registering for the UK Export Academy: https://www.great.gov.uk/export-academy/
UK Export Finance (UKEF) Support
UK Export Finance provides crucial financial support for UK companies expanding abroad. Their services include export insurance to protect against non-payment, working capital schemes to fulfill export contracts, and guarantees to help secure bank loans. They can also provide buyer finance to help overseas buyers purchase from UK companies. UKEF can be particularly helpful if you’re setting up a US subsidiary or need to finance large contracts.
To explore UKEF’s export insurance and support for exporting to the USA, visit: https://www.gov.uk/guidance/country-cover-policy-and-indicators#definitions
Innovate UK Support
Innovate UK, part of the non-departmental government body UK Research and Innovation supports innovative UK businesses expanding globally. They offer funding competitions for R&D projects and run the Global Business Innovation Program for sector-specific US expansion. Their Knowledge Transfer Partnership program can connect you with academic institutions, which can be particularly beneficial for tech companies or those with innovative products or services.
Learn more about and compete for an Innovate UK Smart Grant.
Setting Up a US Entity
When expanding to the US, you must consider the most appropriate business structure for your operations. Options include setting up a subsidiary C-corporation, a Limited Liability Company (LLC), or a branch office. Each has significantly different tax implications and liability protections. It’s crucial to consult with a US-based lawyer and accountant to determine the best option for your company’s needs and ensure compliance with US and UK regulations. Foothold America’s Head of Service Implementation, Robert Esquijarosa, notes that “after consulting with US tax advisors, 95% of our clients chose a C-corporation registered in the State of Delaware for their US subsidiary.”
Cultural Differences in the Workplace
Be aware of US workplace cultural norms when hiring and managing American employees. Generally, communication styles in the US tend to be more direct, and there’s often a stronger emphasis on individual achievement. Many US companies have less formal hierarchies compared to their UK counterparts, and work-life balance in the US doesn’t permeate work culture as much as in the UK. Understanding and adapting to these cultural nuances can significantly improve your hiring and retention efforts in the US market. Angelique Soulet-Bangurah, host of the popular HR video series “Angelique Says” and Head of Employer of Record and Talent services at Foothold America, encourages UK companies to hire in the US because
“US employees truly appreciate working for UK companies because they promote work-life balance and often offer more paid time off than typical US companies. This has resulted in above average retention, which aids in the US market success for UK companies.”
Compensation and Benefits
US compensation practices often differ from those in the UK. Salaries are typically quoted annually rather than monthly, and health insurance is considered a crucial benefit due to the lack of a national health service. Many US companies offer 401(k) retirement plans as part of their benefits package and, on average, match contributions of four percent of salary. It’s advisable to research industry-specific compensation norms and consider working with a US Expansion Advisor to ensure a competitive package.
Conclusion
Expanding your UK business to the US through hiring can be complex but rewarding. By leveraging the wealth of resources provided by UK government agencies and understanding the nuances of the US job market, you can navigate this transition successfully and tap into the vast opportunities the US market offers. Remember to use the specific government resources mentioned throughout this guide to support your expansion journey.
GET IN TOUCH
Contact Us
Complete the form below, and one of our US expansion experts will get back to you shortly to book a meeting with you. During the call, we will discuss your business requirements, walk you through our services in more detail and answer any questions you might have.
