US vs UK Work Culture: The Main Differences
At first glance, it is easy to assume that the US is similar culturally to the UK. If you are expanding your business to the US, it’s very important to be aware of the stark differences between the US vs UK work culture before you begin hiring employees.
Employee benefits, paid time off, salary expectations, and communication styles are just a few of the many differences you should be aware of. This blog is going to shine some light on the legal employment rights to work in the US, but mostly focus on what is culturally acceptable based on our international clients’ experience of engaging workers in the US.
US vs UK Work Culture Comparison
Employment Contracts in the US vs UK
Typically, when an employee is hired in the US, they often only receive an offer letter and a HR handbook rather than the detailed written employment contract that is offered in the UK.
Within employment contracts, US employees are hired ‘at will’. This means that the employer or employee can terminate the employment at any time, with or without any notice. All employment contracts in the US should remain at will unless the employer requests a termination notice. This can be surprising to UK employers who expect at least one month’s notice for most positions, which can increase depending on the seniority.
Employees in the UK can be viewed as having better job security as their employment is under contract, legally requiring up to 12 weeks notice depending on the length of service before ending the relationship. The minimum employment termination notice required in the UK is usually 4 weeks.
Although employment contract termination notice in the UK means better job security – it doesn’t necessarily mean that contingent contract workers in the US on short-term contracts would expect no notice/at-will employment. It is generally customary for an employee and employer in the US to give at least two weeks’ notice before terminating their contract to not damage the relationship, but it is not required.
Salaries in the US vs UK
You will always want to do your research on the acceptable salary ranges in the US, for each role that you are looking to fill. The salary expectations are often much higher in the US than in the UK, mainly due to the cost of living being exceptionally higher.
For example, a software developer in the US makes a median of $110,140 per year. In contrast to this, UK software developers’ median annual salary is £47,500. Therefore, if you are beginning the process of hiring workers in the US, make sure you do your research on US vs UK salaries and factor in exchange rates!
Meeting the right salary expectations in the US is a vital key to helping you attract and retain the right employees when growing your business. Salaries vary from state to state, with popular locations such as New York and California offering much higher salaries than less popular states.
Working Hours in the US vs UK
Tea breaks, are a staple in the UK, not so much in the U.S... or “coffee breaks” which the US Department of Labor (DOL) prefers to coin short breaks. According to the US DOL, federal law doesn't require lunch or short breaks.
Subsequently, Americans generally tend to take fewer breaks away from their desks. However, some states have now introduced meal break requirements. For example, California state mandates meal breaks.
Whereas, in the UK, it is common practice to take at least a 30-60 minute lunch break. UK employees are entitled to a 20 minute break allowance if they work more than six hours a day. It is important to note that some states do require meal breaks after a certain number of hours worked. Not taking a break could also put the worker into unauthorized overtime.
Holiday Entitlements in the US vs UK
UK employees are legally entitled to at least 5.6 weeks of paid holiday leave (including public holidays) under employment law. In the U.S., it is not a legal requirement to offer holidays to employees, instead, it is commonplace to offer it as a perk to attract talent.
Although the number of days off differs per employer, 10 days of vacation is the average allowance offered. Surprisingly, the average U.S. employer often only ends up using half of their vacation allowance each year.
Bank Holidays in the US vs UK
Workers in the UK benefit from extra days off in the form of bank holidays or ‘federal holidays’ as they are referred to in the US. Seasonal bank holidays such as Spring Bank Holiday and Boxing Day are not offered in the US, meaning US offices are still open during these days.
Employees in the US will expect the office to be closed during traditional American holidays that the UK doesn’t offer. These include:
New Year's Day - January 1st
Martin Luther King Jr Day - Third Monday in January
Presidents' Day - Third Monday in February
Memorial Day - Last Monday in May
Independence Day - July 4th
Labor Day - First Monday in September
Columbus Day - Second Monday in October
Veterans' Day - November 11th
Thanksgiving - Fourth Thursday in November
The day after Thanksgiving – This is a common holiday in the US that is one of the few “extra days” employees usually don’t expect.
Christmas Day - December 25th
It is important to note that not all these holidays are legally required to be offered by businesses in the US and depend on the individual company policies. For example, Presidents’ Day is only offered by some businesses at their own discretion.
A US holiday worth highlighting is Thanksgiving, which to many Americans is as important of a celebration/tradition as Christmas. Thanksgiving falls on the fourth Thursday of November. The holiday symbolizes the beginning of the Holidays (Christmas season) and the act of giving thanks.
Paid Sick Leave in the US vs UK
UK employees are graced with a generous allowance of up to 28 weeks of paid sick leave (PSL) via Statutory Sick Pay, unlike their American counterparts who are entitled to zero days of paid sick leave dependent on the state.
It is the US employer’s discretion whether employees can receive sick leave and depends on the state you are operating in. For example, New York and parts of California require 7 days of paid sick leave, and more states are beginning to require PSL.
Sick leave is generally unpaid in the US. Additional job-protected leaves are also provided unpaid. The Family and Medical Leave Act (FMLA) requires employers with over 50 employees to provide up to 12 weeks leave to eligible employees, however, they will not receive payment for the time off. Reasons for leave can include:
The birth and care of a new-born child of an employee
Parental and maternity leave
To care for an immediate unwell family member
To take medical leave when the employee is unable to work due to a serious medical condition.
One of the biggest US vs UK work culture shocks is that women are federally not entitled to any paid maternity leave.
Only eight states - California, New Jersey, Rhode Island, New York, Washington state, Massachusetts, Connecticut, and Oregon – plus the District of Columbia have their own paid family leave laws. This is also covered by the state not the employer. So, it is important to research the state you are operating in when hiring employees in the US
It is easy to see why US vs UK work culture differences can be a huge shock when businesses start operating in the US. The UK’s statutory maternity pay lasts up to 39 weeks, which is much more generous in comparison to the US. During maternity leave in the UK, an employee is entitled to 6 weeks receiving 90% of their average weekly pay, and for the next 33 weeks, either £151.97 a week or 90% of their average weekly pay (whichever is lower).
Health Insurance in the US vs UK
When comparing the US vs UK healthcare systems it could be said that they are at opposite ends of the spectrum. The UK system is nationalized and offers universal coverage to all, regardless of social class or income via the NHS (National Health Service). This means that the UK employees’ income is deducted to fund the NHS at approximately 20% of their total income tax.
In the US, there is no state-sponsored healthcare, instead, employees are required by Federal law (ACA) to have it covered by their employer. The employer will be required to cover a portion of their monthly premiums. Different plans offer varied coverage, so an attractive healthcare plan can be a huge deciding factor when employees are searching for their next role.
If you are entering the US market, you should be aware that employees can only change their coverage/opt-in once per year during a very specific timeframe. Making your US employees aware of this enrolment period is crucial, as if they misunderstand or choose the wrong coverage they will have to wait a whole year to modify their healthcare plan.
Why is it Important to Know the Differences in US vs UK Work Culture?
If you are planning on hiring workers in the US and are coming from a UK background, it is very important that you educate yourself on the differences between work cultures.
If you want to grow your business in the US and attract top talent; the way you communicate, the benefits packages you offer, and many other factors of doing business have to adjust to meet American expectations.
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.