Workwell Global: How UK Recruitment Agencies Diversify Revenue by Entering the US Contract Recruitment Market

Workwell Global (Formally PGC Group) have helped 100’s of UK recruitment agencies place contractors in the US via our Employer of Record solution.

However, there are some items out of our control which often are barriers to entry that stop recruitment agencies taking the leap stateside:

• Long client payment terms
• Upfront US worker costs.

In the world of contract recruitment, cash flow is everything. That’s why we’ve partnered with 3R to offer a new US Recruitment Invoice Funding solution designed to remove cash flow barriers. Offering invoice funding for US contractor placements.

This piece will educate the audience on why agencies are entering the US contract market and how they can overcome common barriers to getting starting such as invoice funding.

Introduction to Topic: What is it, Why Talk About It

In an era of financial uncertainty, UK recruitment agencies are increasingly looking beyond domestic borders to drive growth and profitability. The US, as the largest staffing market globally, presents an opportunity to diversify your business.

Despite the appeal to operate in the largest staffing market in the world, many agencies have historically been held back by structural barriers such as US client payment terms that restrict cash flow.

Why the US staffing market?

Less saturated market vs the UK and higher margins

The US staffing market accounts for the largest proportion of global recruitment revenue, with contract placements making up the majority. Compared to the UK, where market saturation and margin compression are common, the US offers a less crowded landscape and significantly higher margins, often double those seen in the UK.

Shorter US Notice Periods to Recruit and Earn Fees Quicker

In the US, permanent employees are hired ‘at will’. At-will employment means that either the employer or the employee can terminate the employment relationship at any time, for any reason.

The shorter notice periods in the US mean candidates are available almost immediately. This is very attractive for UK recruitment agencies as many find it is easier to place candidates in roles due to the shorter turnaround times. This results in many recruitment agencies operating in the US earn fees in the same month as making placements.

Balance out single-country instability risks by operating in the US and UK

By operating in both the UK and US staffing markets you can balance out economic instability if there are hiring cuts in one of the markets. Many state economies have a larger gross domestic product (GDP) than entire countries, providing recruitment agencies with a wider choice on where to recruit.

A common saying at Workwell Global is ‘treat the states like 50 different countries.’ All have different local laws, labour demand and popular sectors for recruitment. For example, if a recruitment agency specialises in finance recruitment, they may choose to target the financial capital of the world, New York. However, if this state suffers from an economic turmoil, they can easily pivot to ‘recruiting from afar’ in other high demand states for their services once they’ve establishing a foothold in the US.

Increase Your Recruitment Agencies Valuation by Recruiting in the US and UK

If a recruitment agency has evidence of generating revenue in multiple markets with a larger client portfolio, it decreases the reliance on income from UK only clients.

Recruiting in the US can make your business more attractive to investors. It is worth noting that in the US, payment terms with clients are much shorter – typically around 3 days. As it is a legal requirement for contractors to be paid every two weeks. This flow of money and its frequency adds to UK business revenue.

How to Enter the US staffing market

We’ve covered why UK recruitment agencies should consider operating in the US staffing market, but how do they get started?

It’s easier than you think and many agencies start out in the US from their home office using the ‘recruit from afar’ method. Common steps include:

• Conducting market research to target US cities with a demand for your niche
• Identifying UK recruitment consultants to work US hours
• Updating LinkedIn profiles to match the area you are targeting before approaching clients and candidates to build trust
• Engage and payroll US contractors compliantly by using an Employer of Record

However, many UK recruitment agencies know of the opportunity in the US but hold back. Not because of lack of ambition, but because of funding barriers.

Recognising this, Workwell Global partnered with 3R to launch a US Recruitment Invoice Funding solution. This model removes the need for a US entity or credit line, offering 100% invoice funding for contractor placements. Allow UK recruitment agencies to scale into the US with confidence, knowing they can meet payroll obligations without upfront capital.

Traditional funding options often fall short when navigating international markets. That’s why PGC/Workwell Global has launched a Recruitment Invoice Funding solution in partnership with 3R tailored specifically for agencies entering the US.

UK recruitment agencies are no longer asking if they should enter the US market, but how. By using Workwell Global’s ‘Recruit From Afar’ strategy, contractor payroll solution and invoice funding, agencies can turn ambition into action and scale their business in the US staffing market.