The United States of Recruitment: Your Guide to Expanding into the U.S. ?

If you're reading this from the land of baseball, burgers, and bold opinions, you already know that the U.S. market is a unique beast. For companies outside the U.S., entering this competitive, dynamic, and sometimes perplexing labor market can feel a bit like stepping into Yankee Stadium for the first time—exciting but overwhelming.?

Today, I want to explore the unique aspects of the U.S. labor market. This should help those of you who are unfamiliar with how we do things here.

The U.S. Labor Market: A Brief Overview

As of January 2025, the U.S. labor market is experiencing a unique blend of opportunities and challenges. The unemployment rate has edged up slightly to 4.3%, indicating a stable yet competitive environment for talent acquisition. However, worker shortages continue to define the economy, making the quest for top talent feel like searching for a needle in a haystack—blindfolded.

The Three Musketeers of Expansion Models

When it comes to establishing your presence in the U.S., we talk to our clients about three primary models:

Establishing a U.S. Entity: This involves setting up your own operation on American soil, requiring compliance with local laws and regulations. It’s like planting a flag and saying, “We’re here!” This approach is often the most attractive to passive, top-performing talent who prefer the stability of a well-established company. We’ve partnered with clients from Germany, Lithuania, Australia, South Korea, France and the U.K. to utilize this structure.

Independent Contractors (ICs): Leveraging contractors offers flexibility, but tread carefully. Misclassifying employees as contractors can lead to legal headaches. More importantly, many candidates will shy away from IC roles due to the lack of benefits and the ease of losing their job as a “non-employee”. It’s a bit like trying to build a house on a layer of sand—unstable and potentially disastrous. Six of our clients have used this model over the last couple of years, from countries such as Spain, China, Canada and Germany.

Employer of Record (EOR): Partnering with a third-party provider to handle payroll, compliance, and benefits allows you to “employ” U.S.-based workers without setting up a full-fledged entity. While it can be expensive, think of it as investing in an outsourced U.S. HR department, allowing you to focus on conquering the market.

Leveraging Recruiters: Your Guide in the?Jungle for U.S. Talent

Expanding into the U.S. is a lot like moving to a new city—you need a local guide. That’s where recruiters like us come in. A seasoned U.S.-based recruiter can help you navigate the labor market maze, identify top talent, and avoid hiring pitfalls. Why work with a recruiter? Because they:

Understand the Market: Recruiters know which skills are in demand, what salary ranges are realistic, and how to position your company as a desirable employer.

Save You Time: Finding candidates who align with your company’s goals and values is time-consuming. Recruiters streamline the process, leaving you free to focus on the big picture.

Ensure Compliance: Experienced recruiters are familiar with U.S. labor laws and can help you avoid costly mistakes, like misclassifying employees or offering “competitive” compensation that’s not so competitive after all.

Partner with a trusted recruiting firm like ours, which specializes in helping companies like yours successfully expand into the U.S. market. We’ve assisted numerous international companies in navigating the complexities of U.S. recruitment, leveraging our extensive global network and market expertise to find candidates who thrive in an international business environment. With a proven track record and deep expertise in aligning top talent with strategic business goals, TurningPoint can be your guide to navigating the complexities of the U.S. labor market.

Cracking the Benefits and Compensation Code

Understanding U.S. benefits and compensation is like mastering a new language. Unlike some countries where a salary and minimal bonus suffice, U.S. compensation packages are a smorgasbord of base pay, commissions, bonuses, and equity options. While many countries provide 100% paid healthcare to their employees as a standard offering, healthcare in the U.S. is quite expensive, and employees pay a sizable portion. To sweeten the deal, some global employers offer enhanced pay packages that include higher salaries, bonuses up to 100%, employer-sponsored healthcare, 401(k) retirement plans, and generous vacation policies. In 2025, staying competitive means embracing these norms to attract and retain top talent.

Legal Labyrinths and Cultural Quirks

Navigating U.S. labor laws is akin to playing a game of 3D chess. With regulations varying by state, it’s crucial to enlist expert labor attorneys and HR leaders to avoid costly missteps. For instance, many states have implemented pay transparency laws that require employers to disclose salary ranges in job postings. These regulations aim to promote pay equity but can catch businesses off guard if they’re unprepared. Being aware of these changes can help you navigate the hiring landscape while staying compliant.

On the cultural front, U.S. employees often emphasize individual performance and career growth. This means a higher bonus and commission and a clear picture of their opportunities for promotion. They appreciate direct communication and a conversation about how they can climb the corporate ladder. Embracing these cultural nuances will help you build a motivated and engaged workforce.

Expanding into the U.S. market is an exciting adventure full of opportunities and challenges. By understanding the nuances of U.S. talent acquisition, compensation norms, legal requirements, and cultural expectations, you’ll set yourself up for success.

So, pack your bags, prepare your team, and get ready to make your mark in the land of stars and stripes. And if you need a trusted guide along the way, TurningPoint is here to help. After all, why go it alone when you can have an expert at your side?

Best,

Ken