US Recruitment Trends for UK Agencies
Watch the full EP22 Scale Up Stateside with FIFTEEN WEST above!
FIFTEEN WEST is a global rec-to-rec with offices at both sides of the Atlantic Ocean, focusing on helping UK-headquartered businesses scale in the US. Beginning with a strong foundation in London, they launched their next phase in New York in March 2020, which presented a unique set of challenges and opportunities at the onset of the global pandemic.
"We've been working with the same clients in the US probably for about ten years now...we really saw a need for a quality-led rec-to-rec that could help and advise UK businesses not just in New York, but I think offices in Boston, Miami, Chicago, wherever it might be."
We sat down with Founder, Lisa Walder to discuss some of the talent acquisition trends she witnesses in the US market. FIFTEEN WEST’s US operations have been characterised by a partnership-led approach, ensuring that their services are not only comprehensive but also tailored to the specific needs of their clients across various states including New York, Boston, Miami, and Chicago.
Creating a Compensation Package to Attract Talent in the US
US Compensation Strategy
Lisa underscores the importance of offering a comprehensive package to attract and retain top talent in the US. She points out the necessity of a competitive commission scheme that appeals to all levels, robust healthcare benefits essential for US-based employees, and an attractive 401K plan to aid in their long-term financial security.
US PTO Policies
"That's not the case. Standard PTO is 20 to 25 days as it would be in the UK."
Addressing the misconceptions around Paid Time Off (PTO) in the US, Lisa emphasises that offering PTO comparable to UK standards (20-25 days) is critical for competitiveness in the American market. She corrects the common misunderstanding that US companies typically offer only 10 days of PTO, which can deter potential UK expatriates.
Employer Value Proposition
Lisa also highlights the strategic advantage of developing a strong Employer Value Proposition (EVP) that aligns with the company’s mission and values. This includes professional development opportunities, especially tailored towards graduates, which can significantly enhance a company’s attractiveness.
Through these strategies, Lisa articulates how effectively crafted compensation and benefits packages not only draw skilled professionals but also foster their commitment and growth within the company, thereby supporting the firm’s objectives in the competitive US recruitment landscape.
Challenges When Hiring Recruiters in the US (formerly US Staffing Market)
"Finding those 360 recruiters...is the main challenge that every recruitment business in America has."
Lisa discusses FIFTEEN WEST’s approach to building their team in the US, emphasising the importance of cultural integration and the strategic blend of UK and US recruitment practices.
Build a US team
"Our first hire in America was an American... it was really important to have that culture carrier."
The initial step was ensuring the presence of a culture carrier within the team while expanding into the US market. The first American hire played a pivotal role in this strategy, working closely with the UK team to align practices and values.
Transfer experienced UK recruitment consultants to the US
The strategy involved transferring experienced consultants from the UK to the US, alongside hiring local graduates. FIFTEEN WEST navigated the challenge of balancing UK and US cultures within their team, recognising the unique contributions of each member.
The focus was not only on professional skills but also on the ability to adapt and integrate into the broader company culture, which includes a mix of UK rigor and US market understanding.
Through careful hiring and integration strategies, FIFTEEN WEST has successfully established a presence in the US market, highlighting the importance of cultural compatibility and the strategic selection of team members to support international expansion and client service excellence.
Recruiter Salary in the US
"Salaries vary minimally across states, emphasising talent value over location in compensation strategies."
Lisa Walder shares insights on US recruitment salaries and compensation packages, highlighting the industry's competitive nature. Starting salaries for graduates in places like New York are around $55,000, with some firms offering as high as $60,000, underscoring the premium on talent acquisition.
Creating a strong compensation package is essential for attracting the best talent for your team in the US. PGC can provide guidance on establishing an appropriate compensation and benefits package that aligns with US best practices. Below is breakdown of the average recruiter base salary in some key US cities.
Healthcare costs and the importance of a well-structured budget for hiring emerge as significant factors when attracting and retaining recruitment consultants in the US. Did you know you can offer top tier employer sponsored healthcare plans if you engage your recruitment team under PGC's Employer of Record solution?
It's also important to note that salaries for mid to senior level positions range. Salaries for mid to senior-level positions range broadly, reflecting the diverse opportunities within the sector. Interestingly, geographical salary differences are minimal, with talent rather than location driving compensation strategies.
Lisa also delves into commission structures, suggesting a move away from traditional models towards more transparent, performance-driven packages. The goal is to offer attractive yet straightforward schemes that motivate without complexity.
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Hiring US Graduates in Recruitment
A Smart Move?
"The recruitment world is all about hustle and payoff, making it an ideal spot for graduates to use their degrees to chase big earnings."
Lisa Walder explores the idea of hiring US graduates for recruitment roles, noting how well they fit into the industry's dynamic nature. Since recruitment thrives on ambition and the drive to earn, fresh graduates are often a perfect match.
Lisa highlights that graduates bring enthusiasm, hard work, and an eagerness to learn—all vital for success. Their drive typically comes from the need to make their educational investments worthwhile, aiming for careers with high earning potential.
This method works well, as shown by the attractive salaries for entry-level positions. Lisa's observations reveal that bringing graduates into US recruitment not only fills jobs but injects energy and innovation into the field.
Relocating Employees to USA
Insights and Strategies
Lisa Walder shares insights on relocating employees from the UK to the USA detailing expectations for hires and the comprehensive support provided through relocation packages. Highlighting the anticipated performance metrics for new hires, she describes a clear framework of achievements, emphasising the tailored approach to assisting professionals in transitioning to the US market.
When relocating employees to the USA Lisa notes that relocation packages typically include:
Accommodation for the initial weeks
Flight costs
Shipping
The packages are aimed at easing the transition when relocating employees to USA for the individual and their families.
"For an experienced hire... probably bill $400,000 in their first year... for a junior $250,000 maybe."
This practical support underscores the company's commitment to facilitating a smooth relocation process, ensuring professionals can focus on their new roles without the immediate pressure of logistical concerns.
"Relocation packages... you will get two weeks accommodation when you arrive, you get your flights paid for and some shipping."
Lisa also touches on the strategic significance of relocating employees to the USA who are key team members from the UK to spearhead US operations, suggesting the potential for equity and shares as part of the package to incentivise and reward their pivotal role in the company's expansion build in some sort of subsidised accommodation for the year.
"Yes, for them, you know, giving them equity, giving the shares.”
This is an insight FIFTEEN WEST sort out in their strategic planning and support mechanisms. Their experiences offer valuable lessons on How to successfully attract and transition talent from the UK to the US. Their approach not only showcases their expertise in navigating cross-border expansion but also serves as a practical guide for other founders looking to learn from proven strategies in this area.
When relocating employees from the UK to the USA, the most popular type of visa is the E2 Visa. You can find out more about the E2 Visa application process here.
Choosing the Best State to do Business
"We just went with where our clients were at the time... New York is the recruitment centre in the US."
FIFTEEN WEST’s decision to set up in New York was strategic, focusing on proximity to clients and capitalising on the city's status as a recruitment industry hub. Lisa emphasises the value of being near clients and candidates, which has significantly influenced their success and operational approach.
This location strategy was foundational, allowing FIFTEEN WEST to integrate deeply within the US. market, despite later realising their client base's geographic diversity.
The choice underscored the importance of adaptability and strategic foresight in business expansion.
Incorporating in New York and focusing on a client-centric approach has proven effective from their success in the states.
But How to Decide on Which State?
Lisa, reflects on the strategic choices for expanding their recruitment operations within the United States, noting the appeal of Florida and Texas due to recent trends and opportunities which influenced her discussion.
"The UK has actually been a really much better market for us this year... in the US, life sciences this year has been really strong for us."
She discusses the fluctuating markets in the UK and the US, highlighting the benefits of operating in both to mitigate downturns and capitalise on booms in either location. The conversation turns to how different sectors like life sciences in the US have shown resilience or growth compared to others, like tech, which has seen a global downturn.
This exploration underscores the importance of geographical and sectoral diversification in navigating the volatile recruitment landscape, ensuring stability and growth opportunities across varied markets.
Check out our recent resource if you’re curious as to where some of the most popular states for recruitment businesses are.
PGC's Role in FIFTEEN WEST’s US Expansion
Lisa talks about how valuable advice from their network helped them set up in the US.
"We sort of asked our network... how did you do it, what were the pitfalls, etc."
Following advice, they used PGC for essential services like healthcare and payroll, making setting up in new locations smoother. This support helped them focus on growth and expansion strategies.
"We phone PGC to set up our first hire in the US and it was super easy.”
Lisa appreciates PGC's help in easing the expansion process and values the insights on growing in the American market, highlighting the importance of choosing the right partners for international growth.
Ready to Scale Your Recruitment Agency in the USA or Globally?
Launching a recruitment business in the US presents great opportunities along with its challenges. At PGC, we provide essential support every step of the way.
By partnering with us, your payroll processing and benefits provision for contractors is sorted. But that’s not all, PGC client’s gain access to The US Recruitment Academy, training designed to get your recruitment consultants confidently and compliantly billing in the US in a matter of weeks.
As part of Workwell International, we also offer a wider range of services to support your international business expansion beyond the US. You can keep all your contractors under one book, with the ability to rapidly place and payroll contractors in 80+ countries, along with Workwell Outsource solutions to fund and manage your back offices while you scale globally.
For direct insights into talent acquisition trends to scale your recruitment agency internationally, book a free 1-1 with an expansion expert.