Global expansion and outsourced teams

Expanding abroad, especially into the US, is one of the fastest ways for a recruitment business to grow. Employer of Record (EOR) providers let you hire people in another country without setting up your own company there, and offshore and outsourced teams give your consultants extra support for less.

What to look for

• Real experience where you're going. Employment law, tax and benefits vary by country and, in the US, by state. Choose a provider that knows the places you're expanding into.
• What the EOR actually covers. Employment contracts, payroll, taxes, benefits (such as health insurance in the US) and following local rules.
• Help for recruitment businesses. Some providers can also help with licences, contracts, offices and finding clients in the new market.
• For outsourced teams: training and quality checks. Ask how people are recruited, trained and managed, and how their work is checked.
• Data security. Offshore teams will handle candidate and client data, so ask how they keep it secure and meet UK GDPR.

Questions to ask before you sign

• What's the total monthly cost per person, including taxes, benefits and fees?
• Who is the legal employer, and who carries the risk if something goes wrong?
• How long does it take to hire someone through you?
• What happens if we want to set up our own company there later?
• For outsourced teams: who manages them day to day, and what hours do they work?

Watch out for

• Comparing fees without the employment costs. Taxes and benefits can add a lot to a salary, especially in the US.
• Assuming one US state works like another. Rules on employment, pay and tax differ.
• Offshore support without a clear plan. Start with well-defined tasks and build from there.