Why Agencies Are Entering the Global Recruitment Market

High Salaries in Global Recruitment Markets Translate to Higher Markups

Recruitment agencies can maximise revenue by entering global recruitment markets with higher salaries that offer the opportunity for larger markups. In markets like Germany, Dubai, Japan, and the US, there is substantial earning potential due to high salary levels across various industries.

Let’s break down US salaries as an example.

Place US Candidates on High Salaries

Everything is bigger in the US…

The saying really is true; ‘everything is bigger in the US’ including the salaries, which translates to higher markups. Many of our recruitment clients who have started placing candidates with US clients are overjoyed with the average 25-45% fees they can charge.

The high salaries on offer in the US recruitment have been a big attraction for recruiters trying to enter the global recruitment market as they can seize higher markup to complement their home revenue.

For example, the map below shows the fees recruitment agencies could charge by placing permanent roles within the US tech industry. This is based on the above average tech salaries per area using a margin of 25%. If UK recruiters can make the average perm fees below, imagine the profit potential from making tech temp placements, in an ‘at will’ employment market.

Other Key Global Recruitment Markets with High Salary Opportunities

Salaries in Germany

Germany’s tech and engineering sectors offer lucrative salaries. For example, IT professionals in Germany typically earn €60,000-€80,000 annually, depending on their experience and location. This competitive pay in Germany makes it a great global recruitment market choice.

Salaries in Dubai

Famous for its tax-free salaries and rapid sector growth in finance, IT, and construction. Dubai is a lucrative global recruitment market due to the earning potential. Senior professionals in fields like tech and finance can earn AED 500,000+ annually, making it an attractive destination for recruitment agencies looking to maximize their placement fees.

Salaries in Japan

With its aging workforce and increasing demand for specialised skills in technology and healthcare, Japan offers promising high-salary opportunities and is a viable global recruitment market. Tech professionals can expect annual salaries ranging from ¥7 million to ¥10 million, providing a substantial margin for recruiters.

Earn Fees Quicker in a Global Recruitment Market

One of the reasons recruitment agencies are turning to global markets is the opportunity to earn fees faster due to different employment conditions. In the US, for instance, the ‘at-will’ employment system allows for a much quicker turnaround in placements.

What does ‘at-will’ employment in the US mean?

It refers to the ability for either the employer or the employee to terminate the employment relationship at any time, for any reason, with no required notice period.

This means the US is a highly transient global recruitment market, with candidates available almost immediately.

Other global recruitment markets with favourable conditions for quicker placements include Singapore, known for its highly regulated and fast-moving financial sector, and Australia, where the demand for contract workers in industries like healthcare and IT means short recruitment cycles and quicker earnings for agencies.

Choose a Country Where Services/Sectors are in High Demand

For recruitment agencies looking to break into global recruitment markets, you have the option to research and target countries that have a high demand for your services and favorable employment conditions.

For example, if you specialise in IT recruitment, you should research countries investing heavily in tech. You can then tap into this by targeting businesses hiring for IT positions in high demand cities, positioning your recruitment expertise to help them find the perfect candidate.

When it comes to the engagement and payroll side of hiring whoever, wherever, don’t let that stop you. That’s where Workwell Global makes it work for you. But for now, let’s look at some global recruitment markets as an example.

Singapore

With a fast-moving and highly regulated financial sector, Singapore remains an attractive global recruitment market. The demand for professionals in finance, technology, and healthcare continues to grow rapidly, allowing recruitment agencies to fill positions quickly. The rise of industries like fintech and artificial intelligence also contributes to the high demand for skilled professionals.

Australia

Australia’s contract work market, especially in sectors like IT and healthcare, is on the rise. There is high demand for roles like software engineers and nurses, which means that recruitment agencies can place candidates faster due to the urgency of these industries to fill positions.

Germany

As mentioned earlier in the article, Germany is known for its strong industrial base, Germany’s demand for engineering and tech professionals is high. The country is seeking skilled workers in areas such as IT and automotive engineering, making it an attractive global recruitment market.

US

Last but not least – The US offers 50 states to choose from when recruiting all with different GDPs, sector demands, employment laws, and talent. Some don’t even charge personal income tax – a bonus if you ever decide to relocate to the US.

Even if recession fears sneak in, the demand for contract workers often remains strong in the US to replace permanent positions, as witnessed after the pandemic.

Candidates and Clients at the ‘Top of Their Game’ Choose Iconic Countries

The strong and diversified US economy leads in almost all major industries. For this reason, conquering the US as it is the top global recruitment market is often considered a natural step for successful companies and candidates who want to be present in an area that offers the highest revenue opportunities in their industry.

The same applies to recruitment agencies who have already experienced success within their niche in their home country. Entering the global recruitment market is a good strategy to take their revenue to the next level.

Many recruitment agencies may also look to expand into global recruitment markets, like Bali, Indonesia, Spain, and Australia which are top destinations for contractors, especially in sectors like media, technology, and creative roles.

The rise of remote working options and favourable tax conditions have made these locations highly attractive for contractors seeking flexibility, lower living costs, and more work-life balance. Let’s look at some examples.

The US

New York Popular for Finance Recruitment

If you recruit within the financial sector in the UK, you can research other global recruitment markets that have high demand for financial professionals. Why not place candidates with US clients in New York to amplify your reputation and revenue?

Home to the famous Wall Street, New York is widely acknowledged as the financial capital of the world. Therefore, it is not only packed with large finance companies requiring recruitment professionals to source and secure the best talent, but ambitious professionals who relocate from all over the world to ‘make it’ in New York.

If you’re after top finance companies and candidates, there really is no better place to operate.

California Popular for Tech Recruitment

Similarly, if you are already recruiting within the tech sector in the UK. Why not add even more revenue to your business by joining the recruiters who are taking advantage of the hiring opportunities in world-famous tech hubs like California’s Silicon Valley or the booming Austin market?

To further emphasize the talent you can access in the US recruitment market, there are approximately 52.8 million people aged 25 and over in the US who hold a bachelor’s degree.

According to the latest US census data, 24.1 million people in the US obtain a master’s degree. So, whatever sector you recruit in, due to the sheer size of the industries in the US and the talent available, you’re sure to expand your revenue.

Bali

Well-known for its digital nomad community, Bali’s global recruitment market offers contractors a thriving environment with low costs and a strong internet infrastructure. The local ecosystem has grown to support freelancers with co-working spaces and networking opportunities.

If you’re recruiting within marketing, digital, and creative roles, Bali may be a worthy destination worth targeting to go global.

Spain

Spain is a popular location within the global recruitment marketing agencies. Barcelona in particular, is a hub for digital marketing and media professionals, thanks to its rich cultural scene and a growing startup environment. Spain’s Golden Visa program also offers pathways for contractors to live and work in the country, making it an attractive choice.

The Size of Global Economies Decreases Reliance on One Area for Demand

You can mitigate your risk by expanding into global recruitment markets, as it helps balance risks tied to economic instability by only operating in one country. By recruiting in regions with varied economic conditions, agencies create multiple revenue streams, reducing dependency on one area.

As mentioned throughout this blog, countries like Singapore, Australia, and Germany are attractive hubs due to their strong economies and high demand in sectors like tech, healthcare, and finance.

Similarly, Spain and Dubai offer favourable conditions, like tax benefits and visa incentives for freelancers, making them ideal for diversifying revenue and maintaining competitiveness.

US Example: 50 states to recruit from with different economies

In the US, state economies decrease reliance on one area for demand.

Let’s take operating in the US recruitment market as an example to balance single-country instability. The US has 50 states, each offering unique economic conditions. Recruitment agencies can tap into specific regions and sectors for stability, especially if one is experiencing booming growth.

The size of state economies attracts recruitment agencies to make placements in the US. For example, Texas, with a GDP of $1.9 trillion, surpasses the economies of countries like Australia and Canada.

Furthermore, if the banking sector in New York slows, agencies can focus on the tech sector in California or energy in Texas, ensuring continued revenue through diverse markets.

Large corporations like Microsoft and MasterCard keep demand for contract workers high, even during downturns, making the US a resilient market for recruitment agencies.

Increase Your Recruitment Agencies Valuation by Entering the Global Recruitment Market

One of the biggest reasons recruitment agencies expand into global markets is to increase their overall business valuation.
Operating in the global recruitment market not only diversifies revenue streams but also makes the agency more attractive to investors.

By generating income from a broader client portfolio, agencies reduce their reliance on a single country’s economic stability and client base, offering a stronger long-term financial outlook.

We regularly hear from UK recruiters that they enter the US recruitment market to increase their company valuation. If a business has evidence of generating revenue in multiple markets with a larger client portfolio, it decreases the reliance on income from UK-only clients.

Not only is having a global business more attractive to investors, but a strong global contract book really helps recruitment company valuations. For example, 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. Steady and high cash flow is a big tick for investors, which is why entering global recruitment markets is often the natural next step to take.

Ready to Increase Your Revenue in the Global Recruitment Market?

Branching your recruitment agency to offer a service to global clients is easier than you think. Get started and hire whoever, wherever in the world. That’s where we come in! At Workwell Global, we specialise in helping recruitment agencies expand seamlessly into new markets.

From payroll management to worker classification, we make it work for you, whoever, wherever you hire. We handle the regulatory complexities in 80+ countries so you can focus on placing talent.

If you’re interested in entering global recruitment markets, book a call with our business expansion experts at Workwell Global to learn how we can help you hire whoever, wherever in the world.

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.