North American Expansion: A Real Possibility For UK and European Staffing Businesses
It’s time to break the trend which is stifling global expansion of the UK and European staffing industry. In the UK and throughout Europe, recruitment and staffing businesses are losing out on a huge chunk of the international market. This is due primarily to the long-standing perception about the inaccessibility of the US and Canadian market-place. In reality, however, the prospect of making the trans-Atlantic leap may be more realistic than it first seems.
North American Market for International Recruitment Companies
For recruitment companies, operating in the United States and/or Canada opens up a wealth of opportunities and presents a chance to significantly increase global presence. However, for those based in the UK and around Europe, the process which unfolds when engaging in the US or Canada is daunting to say the least. It has created an air of uncertainty which has dissuaded businesses from setting up in the region. When you look at the requirements, it’s easy to see why.
The laws and regulations surrounding employment in the US and Canada are a minefield of tax, insurance and compliance issues. In the US these regulations (there are dozens of them) operate on a Federal, State and Municipal level.
This means that, for an in house team opening up shop, it may take months to get through all the necessary admin and to onboard a new employee. This will take even longer if they are planning to work in a state other than that in which the company is registered. Employers in the US and Canada must consider the classification of each individual member of their workforce to ensure that they are withholding and paying the correct and sufficient employee and employer taxes and that they are doing relevant and suitable work for their classification.
When companies get this wrong (and they often do) they will likely find themselves on the wrong side of the IRS and/or Department of Labor and having to pay out thousands of dollars in fines and back-payments. These issues are just the tip of the iceberg; Once the “obvious” matters have been addressed, you must then enter an ever-changing labyrinth of litigation and employee/employer responsibilities as well as being up to date with an extensive and frankly baffling legal playbook: It becomes a case of adapt and learn or die.So when businesses begin to research expansion into the US and Canada, it’s hardly surprising that they abandon hope fairly quickly.
Use an Employer of Record When Expanding to North America
If you are one of those people or if your business is currently exploring opportunities on the other side of the Atlantic, there is hope! Engaging an Employer of Records (EOR) company can address all these issues in one fell swoop; it almost sounds too good to be true.
An EOR will stand contractually between an employer and their workforce (or a recruitment agency and their candidates) and therefore take on responsibility for all employment-related reporting and administration.
Many agencies will choose to partner with an EOR so that they can focus all their resources on their own business growth whilst handing over the back office and compliance workload. Working with an EOR like PGC means that doing business in the United States and Canada is now a very real possibility, and in reality, fairly straight forward. By partnering with us and navigating the North American continent you have the opportunity to become a truly global company.
To find out more about using an employer of record for expanding your business to the US or Canada, get in touch here.
Disclaimer: All information written here is for general informational purposes only and is not intended to be a substitute for professional and/or legal services.