Why UK recruitment agencies are hiring internationally
The last few years have pushed recruitment agencies to adapt to survive. From navigating a global pandemic to managing the economic effects of the war in Ukraine, their usual markets were impacted.
Consequently, we witnessed more recruitment firms turning to international markets to maintain their business momentum and seize global opportunities.
When it’s time to engage and place international contractors, many recruitment agencies’ first point of call for guidance and compliance support may be an ‘international version of a traditional UK umbrella company.’ But that shouldn’t be the solution you’re after.
Let’s be clear, International Umbrella Companies don’t actually exist in the way you might expect. Keep reading to understand why!
Why you won’t find an International Umbrella Company
They Don't Exist
The reality is an International Umbrella Company doesn’t exist. Umbrella companies are built and designed for UK employment law. It’s set up as a mechanism to employ and payroll contractors, extending the rights of UK employment law to ensure UK contractors are protected and recruitment firms are compliant.
Contractor Engagement
The requirements on how a contractor can be engaged will vary from one country to the next. So, an umbrella company operating in the UK, for example, isn’t going to be viable or compliant for contractors operating in Germany, or any other country. Hence why you won’t find an ‘international umbrella company.’
Local Entities
As rules and regulations vary widely across borders, you require a provider who has local entities and a presence in multiple countries and can run the payroll through those local entities.
Supply Chain Risk
The risk of engaging an international contractor in a non-compliant manner can also be passed down the supply chain to the recruitment agency. Therefore, it’s essential to ensure your firm has the right in-country solutions in every location you’re operating in or planning to expand into.
So, if an international umbrella company doesn’t exist, what can you use to engage and place contractors in international countries?
Employer of Record: The Compliant Option to Take Your Recruitment Agency Global
Whilst looking for a global employment solution, you perhaps now know that an international umbrella company doesn’t exist as it is only relevant to the UK employment model. What you more than likely need is an Employer of Record (EOR) for your global hiring needs.
An Employer of Record handles the following tasks on behalf of your recruitment agency:
- Responsible for employment compliance
- Deducts payroll taxes
- Processes and deposits payments to workers
- Gathers and stores contractors’ timesheets
- Provides benefits and insurance plans for contractors, including healthcare in the US
- Creates and issues employment contracts
- Onboarding and offboarding contractors
- Conducts background checks
Workwell Global’s Employer of Record Solution
An Employer of Record solution, like Workwell Global, acts as an extension of your company to help you hire contractors, wherever in the world. One bonus of partnering with Workwell Global to take your recruitment agency international is access to market insights and training. For example, our clients operating in North America, have access to The US Recruitment Academy.
The academy equips recruitment consultants with the knowledge and skills they need to successfully recruit in the US – including how to source candidates and an overview of US employment compliance.
What you get instead of an ‘International Umbrella Company’
Workwell Global’s mission is to help recruitment agencies compliantly place contractors wherever in the world with our Employer of Record solution.
We don’t offer a ‘blanket international umbrella company’ solution as they simply cannot be compliant. Instead, we provide tailored contract workforce management solutions, with entities in 80+ countries to help you place contractors in your country of choice.
If you have a requirement to place a contractor in a different country, Workwell Global’s expert team has comprehensive knowledge and expertise in:
- Local legislation
- Licensing requirements
- Available employment structures
- All other country-specific requirements
Our Employer of Record solution protects every party in the recruitment contractual chain from compliance liabilities when hiring internationally.
To give extra reassurance, when your contractors are using our Employer of Record solution, we fully indemnify your business and end users from any tax compliance liability in many of the countries we operate in.
Here’s a breakdown of how we can support your international contract management:
- Dedicated account manager who offers support for your global expansion
- Payroll processing
- Local tax compliance and invoicing
- Legal and immigration support
- Worker insurance coverage and contract administration to keep things running efficiently
- Dedicated contractor care team who support the onboarding and ongoing care of your contractors
Disclaimer: The information provided here does not, and is not intended to, constitute legal or accountancy advice. Instead, the information and content available are for general informational purposes only.
Ready to Take Your Recruitment Agency International?
As demand for temporary roles continues to grow across the globe, the opportunities to gain extra revenue for your recruitment agency by placing contractors globally is a great growth strategy.
However, it is really critical that you seek the right source of information to eliminate the potential risks to your business when hiring internationally. So, if you’re planning to expand your geographical market, don’t look for an international umbrella company.
Look for global employment experts with global and local knowledge and connections. Book a global expansion call to find out how we can help your recruitment agency hire whoever, wherever in the world.