It’s not easy for UK firms to recruit US‑based talent.
Most UK companies expanding into the US open their first office with a known entity — someone they trust, who understands the brand, and is willing to go the extra mile for the opportunity to work/open an office overseas. Often, this is done via an internal transfer. I experienced this firsthand. In 2016, I relocated from London to New York to help build out the US offering for the company I worked for.
10 years ago, there were fewer UK firms operating in New York and what we didn’t realise is how fundamentally misaligned UK and US compensation structures were when it came to market engagement about growing our office. From a UK perspective, hiring US recruiters looked very expensive — and risky — for a start‑up office that could ill afford a bad hire. However, to be build an office it is imperative to avoid viewing US hires through a UK P&L lens — the market dynamics are different.
UK vs US commission models
UK and European recruitment firms are typically built around a base salary plus bonus structure. Commission rates are often staggered after thresholds are reached to profit levels. In practice, total compensation usually equates to around 40–42% of total billings.
In contrast, US recruiters are commonly paid on a draw system paired with a very high commission rate, often that rate starts at 50%. For those unfamiliar with the term, a draw is an advance against future commissions. It provides predictable income, which is later offset by earned commission. In some firms, the individual can choose their draw.
Consider this example:
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A US recruiter is on a $100,000 draw with a 50% commission rate.
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A UK recruitment firm wants to hire that individual and offers a 30% uplift, turning the draw into a $130k base.
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Because they have a UK commission model, that individual must overcome a 2x base hurdle before earning commission. The commission model is a lot lower. The highest possible commission rate is 50% but only on a v high billing number.
While the UK firm may see this as competitive – a base salary is guaranteed income, many US recruiters may have a different mentality. They are deal‑driven, commission motivated and can be less risk‑averse when the upside is compelling. To understand how to hire US recruiters you need to take a different mindset. One, in hindsight, I didn’t appreciate until I had spoken to a few.
Setting the cultural tone
Another challenge is internal alignment. From a leadership perspective, bespoke commission plans create complexity and resentment. Most CEOs want consistency, not one‑off exceptions. Many UK firms are reluctant to change their own schemes for a different audience. However, early compensation decisions set the cultural tone and ability to attract talent.
US billers should be the highest producers in the business. Their average placement values should be higher. Those leading a US Office should set higher expectations of their consultants, not lower commission models. You will also tend to find, given the short notice periods, US individuals are more likely to constantly check on the market. They tend to have more moves on their resume’s. If your offer caps upside, they’ll walk — or worse, join and disengage.
Dryden Search is now actively supporting firms on the East Coast. For more details about our offering, please contact Daniel Close.
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