Expanding into new markets is an exciting step for employment agencies, but it comes with challenges. From navigating compliance requirements to managing cash flow in multiple currencies, getting the right structures in place early can make international growth far more manageable.

Based on our experience supporting agencies entering markets like the Netherlands, Germany, Ireland, Switzerland, Denmark and the US, here are five practical tips to guide your journey.

 

1. Understand Local Compliance

Each country has its own employment laws, tax systems and regulatory processes. For example, Germany enforces strict labour leasing rules, while Ireland requires early registration with its Revenue system.

Taking the time to understand these differences, and working with trusted local experts, can help avoid costly missteps and build client confidence from day one.

 

2. Work with a Funder That Supports International Activity

Many finance providers still limit how funding can be used outside the UK. For agencies focused on international growth, this can become a major barrier.

Look for funding partners who are set up to support international subsidiaries and who understand the nuances of global operations.

 

3. Plan for Multi-Currency Operations

If you are placing candidates or working with clients abroad, it is likely they will expect to trade in their own currency. Relying on conversions or sticking to GBP can complicate your processes and create avoidable delays.

Building a multi-currency setup from the beginning can help you work more efficiently and meet local expectations.

 

4. Protect Your Cash Flow

Cash flow can be a major concern when expanding into new regions. Waiting weeks for payment after placing candidates can slow progress and limit your ability to scale.

Strong prepayment terms on both temp and perm placements can give your business the financial breathing room it needs to grow sustainably.

 

5. Build Scalable Infrastructure

International expansion involves more than placing candidates. From onboarding to payroll and compliance, your systems and partners need to support growth, not slow it down.

As your agency grows into new territories, consider whether your current operational setup will scale with you or need to be rebuilt along the way.

 

Final Thoughts

International growth is a significant step for any agency. With the right preparation, trusted partners and scalable foundations, it can also be a rewarding one. These tips are designed to help recruitment businesses think ahead and lay the groundwork for long-term success.

Written by Peter Felix, Senior Business Development Manager at Sonovate