International placements are one of the methods UK recruitment agencies are exploring in 2025 to grow their businesses and service offerings.
Many agencies have found that the margins on international placements are much higher and that the skills that UK recruiters use to make placements are transferrable overseas with great effect and return.
However, making placements overseas requires research and investigation before jumping into making those first placements as the rules, regulations and processes can be significantly different to making a UK placement.
Below are 4 factors that agencies may want to explore before making their first international placement:
ARE THERE REQUIREMENTS IN MY MARKET OVERSEAS?
Whilst the appeal of larger margins may be a large draw for most people, there needs to be some research conducted beforehand to ensure that the country the agency is hoping to work in has requirements that need filling. This may be to look at the current clients that the agency is working with to see if they have overseas offices, looking at the market and who the main clients are, or it may be identifying skill set shortages that the agency can fill.
DO I HAVE THE CORRECT CURRENCY ACCOUNTS IN PLACE?
More often than not, overseas placements will want the agency to be billing in the local currency instead of being billed in GBP. The agency will need to ensure that they have currency accounts set up to receive funds and may want to speak to a currency exchange company about mitigating any losses when converting back to GBP. Also, some countries have a closed currency (i.e. cannot be taken out of the country) so it may be best to speak to the client about billing in an alternative currency.
ARE THERE ANY TAX RULES OR REGULATIONS I NEED TO ABIDE BY?
Whilst most overseas placements can be made from a UK company, there can be country-specific rules that need to be followed to fulfil the placement. Some countries have withholding taxes (that can sometimes be mitigated by double taxation agreements), labour leasing licenses (where placements need to be administered in the country) and different rules about paying contract workers. It is best to seek advice from country-specific legal or tax advisers before exploring placements.
HOW DO YOU FUND AND ADMINISTER THE PLACEMENT?
If the agency is making contract or temporary placements, then several factors need to be considered such as currency funding and contractor payroll. Many invoice finance providers can provide currency funding, but this may require an amendment to the existing funding arrangement. Each country has their own methods of paying contract workers compliantly, so it is best to speak to payroll providers who deal with the country the placement is being made in.
MAYACHI works with many clients making international placements and advises them on the best way to ensure they are run compliantly to reduce any risk of non-payment or legal challenges. MAYACHI also helps recruitment clients source funding for contract placements in various countries along with ensuring the candidates are paid correctly within the payroll rules.
