Navigating the HR Challenges for Entering (or Re-entering) the US Market

The USA continues to become an increasingly popular place for companies to move their operations into – so much so that manufacturing was actually the fastest growing asset category in 2022, and then proceeded to be 74% higher in 2023. Whether this be from companies returning after venturing somewhere else across the globe or expanding into the US for the first time, the offer of supply chain resiliency, sustainability, and geopolitical stability has led to the US becoming a hotspot for reshoring or expanding operations in the modern business landscape.

However, success in the US requires more than replicating strategies from your home market. Navigating the sea of compliance, as well as understanding geographically where best suits your needs on a talent pool and consumer level can be overwhelming to say the least. But, with an expertly structured approach to this expansion, the US business environment can be seized for all the organizational benefits it has to offer.

So, first things first, what do you need to know about the US business landscape?  

While the US offers a fertile ground for business growth, it requires a nuanced understanding of its unique opportunities and challenges:

• Cultural Practices – success in the US involves adapting to local cultural nuances, as there are many differentiating factors on a state level that will need to be considered in order to make informed business decisions and ensure that where you set up aligns with the culture of your company. Organizations should also try to avoid being perceived as mere extensions of their parent companies, and instead work towards building an identity that is tailored to their new landscape.
• Employment Laws and Regulations – US employment laws vary significantly between states, so it’s important to have HR Leaders who can draw upon a comprehensive library of state-specific legislation to ensure full compliance from day one.

In addition to this, there are also some key legal and recruitment considerations:

• Legal Entity and Employer of Record (EOR) – deciding on the appropriate legal entity (e.g., Corporation, LLC) and identifying the legal Employer of Record are critical early steps. Some organizations partner with third-party EORs to manage payroll, benefits, and compliance – we guide organizations in evaluating options and selecting the optimal structure.
• US Immigration Compliance – bringing non-US staff into the country requires correct work authorization. US immigration laws are complex, and non-compliance can result in severe penalties, so you will need help navigate these regulations to ensure legal compliance.
• Compensation and Benefits – US compensation practices often emphasize variable pay and equity components more than European markets…understanding these differences is vital to attract and retain top talent.

At OrgShakers, we provide organizations with a comprehensive understanding of the critical People considerations necessary for successful expansion into the US. Our fractional HR Leaders offer local insights and hands-on implementation to build fit-for-purpose HR infrastructures, including payroll, benefits packages, statutory compliance, and people strategies.

Our experienced practitioners will then work alongside your team, gaining a deep understanding of your organization’s unique challenges and opportunities. This will help us to identify essential solutions and actively implement them to help achieve both immediate and long-term business goals, ensuring compliance with all relevant legislative requirements. Essentially, we want to make it so that we can help your company leapfrog to success and free up your time to focus on other key areas of your business.  

We have ample experience when it comes to supporting organizations through policy development, legal reviews, and audits to ensure compliance with US employment laws. In addition, we can provide you with all the necessary tools and resources for payroll, onboarding, and ongoing compliance training, resulting in a successful transition into the US market.

Expanding into the US can propel your organization’s growth and global presence. With OrgShakers as your HR partner, you’ll have the insights, tools, and support needed to thrive in this dynamic market and leapfrog straight to success. If you would like to discuss how we can help support you with reshoring your operations back into the US or first-time expansion, please get in touch with me today at natasha.santos@orgshakers.com