How Justworks Supports Small Businesses Expanding to the United Kingdom

Whether you aspire to tap into lucrative new markets or build out a globally distributed team, choosing an expansion strategy that is unique to your business needs will very much depend on your timeframe, your budget, and your goals. 

If you’re thinking of expanding your US business to Europe, the United Kingdom is likely to rank high on your list. The UK — comprising England, Wales, Scotland, and Northern Ireland — is more than just a gateway to European markets, it’s a multicultural hub boasting many benefits for small business owners. Keep reading to learn how and why US based businesses are choosing to expand into the UK.

Why Do Businesses Choose to Expand to the UK? 

The UK continues to hold strong appeal for US small businesses looking to establish operations overseas. With easy access to the rest of the world, an affordable and diverse talent pool, universal business language, and cultural similarities, there are many benefits to entering the UK market for businesses looking to tap into a thriving market and establish a global presence.

• Highly skilled talent pool: The UK has a highly-skilled, diverse workforce with a wide range of backgrounds, perspectives, and experiences is the foundation of the UK’s strong, international, dynamic economy.

• Access a global marketplace: Located at the crossroads of global trade routes between Europe, North America, and Asia, the UK makes for an ideal location for international business.

• Clearly defined employee protections: Simplified compliance makes it easier to make sure you are meeting all obligations under UK employment law.

• World-class academic and research facilities: Home to four of the world’s top ten universities — Oxford, Cambridge, University College London and Imperial College London — secures the UK’s position as a science and innovation superpower.

• Favorable time zone: The UK has a close proximity to Europe and overlapping business hours with Asia and the Americas, making it easy for globally-distributed employees to stay connected. 

There are many benefits to hiring talent in the UK, but it also comes with complex employment requirements like statutory benefits, national insurance contributions, and workplace safety regulations. Justworks  takes care of all these HR and compliance components, while you retain full control over day-to-day operations and team decisions of your UK workforce. 

How Do US-based Small Businesses Hire Talent in the UK?

Expanding across borders is no easy task — especially for small business owners. To successfully hire and onboard talent in the UK, you will need to create an international expansion plan that both meets your specific needs and goals and takes into account local labor laws. Otherwise, you risk sinking valuable investment capital and slowing long-term growth. 

There are three ways to hire UK employees: set up a legal entity in the country, partner with an EOR, or hire independent contractors.

Which Entry Mode Works Best?  

The choice of entry mode depends on various factors such as the level of control you desire, the level of risk you are willing to take, and the level of investment you can afford to put in. You should think about your specific business needs and the resources available to you before deciding on the most appropriate entry mode. 

If your primary goal is to gain access to highly-skilled talent, opening a local entity may not be the most logical and cost efficient way for you to achieve this. For a small business with less than 100 employees or  companies testing out new markets, choosing between establishing a local entity or partnering with an EOR provider is a critical decision that they must make before expanding internationally. 

For small businesses that are looking for speed, cost efficiency, and risk mitigation, partnering with an EOR provider, or maybe first hiring an independent contractor, could be the better choice to test out a new market without making a significant cost and time commitment. 

Grow Your Team in the UK with Justworks EOR

Justworks’ EOR services help small businesses hire, onboard, and pay talent in the UK with high-touch, localized support. We’ll equip you with everything you need to bring on and manage employees in the UK, and you'll save the time and costs of setting up a local entity.

Ready to start hiring talent in the UK with Justworks EOR? Here’s how you can expect the process to look: 

1. You’ve found someone in the UK you’d like to bring into your team.

2. Partner up with Justworks EOR and be assigned a dedicated support team.

3. Begin onboarding employees in the UK with local benefits and pension scheme.

4. Support your new employee’s onboarding, while Justworks manage the ongoing. payroll, benefits, compliance, and other local HR processes for your growing hub,

Our team of local HR and Compliance experts will be there to support your full-time employees in the UK from onboarding to offboarding and everything in between. We handle the day-to-day HR tasks so you can focus on what matters: managing your team and scaling your business. 

Ready to learn more about UK expansion? 

Justworks’ global EOR is the solution for small businesses looking to easily hire talent in countries where they don’t already have a legal presence. With Justworks, you’ll have a dedicated partner to handle the operational side of international expansion, so you can focus on growing your team and your business. Let us make your hiring simpler, smoother, and more secure!

Learn more about how you can hire and onboard UK talent through Justworks. Get started today.