In this article, I’ll walk through the key phases of becoming operational in the U.S. recruitment market in 2026. Having spent over a decade in the staffing industry across both the UK and the U.S., I’ve seen first-hand the opportunities available to UK recruitment firms that are willing to expand into the American market – and the most common pitfalls that can slow them down. 

Many agencies make the decision to enter the U.S., but long-term success depends on more than just demand. It requires the right operational setup, realistic expectations, and a phased approach that allows firms to scale without unnecessary risk. 

As someone who made the move from the UK to the U.S., here’s how I typically see successful recruitment firms approach US expansion today. 

Phase 1: Planning for becoming operational in the US recruitment market

The first – and arguably most important – phase is planning. In 2026, entering the US market is less about whether the opportunity exists and more about how you structure your entry. The U.S. recruitment market is projected to reach $212billion by 2027.  

At this stage, agencies should focus on: 

• defining their niche (industry, role type, or market segment) 

• identifying where demand is strongest 

• understanding how US hiring expectations differ from the UK 

While the U.S. has providers and services for almost every business function, the most successful recruitment firms tailor their approach to their specific operating model. Many agencies benefit from working with U.S.- based experts who understand local market dynamics, employment practices, and operational expectations. 

Rather than attempting to cover the entire U.S., agencies that focus on a single state, city, or niche sector often establish credibility more quickly and build stronger early traction. 

Phase 2: Launching without overcommitting 

In 2026, recruitment firms entering the US market typically focus on validating demand before committing to a permanent presence. Rather than establishing a US entity at the outset, many agencies adopt a lean, remote-first approach that allows them to deliver placements, build revenue, and establish client relationships while keeping operational risk low. 

Most UK recruitment firms begin by: 

• running business development from their home country 

• operating on U.S. time zones 

• testing client demand and placement velocity 

During this phase, speed and flexibility are critical. Agencies use early performance and revenue signals to refine their delivery model, understand market expectations, and determine where demand is strongest. Even at this early stage, hiring in the US involves formal processes and employer responsibilities, as outlined in the U.S. Department of Labor’s hiring resources. 

For firms supporting clients that require US-based employees, working with an Employer of Record (EOR) provides a practical solution. An EOR enables recruitment agencies to place candidates compliantly on behalf of their clients, without the cost and complexity of formal setup. This allows firms to focus on delivery and relationship-building while assessing the long-term viability of the US market. 

Many agencies remain in this phase for several months before deciding whether to formalize their presence further. By this point, they typically have clearer insight into client needs, placement volumes, and how their operating model should evolve. 

Phase 3: Becoming operationally established 

Once revenue and demand are stable, agencies often look to establish a more permanent U.S. presence. This doesn’t always mean opening an office immediately, but it does involve formalizing operations. 

This phase may include: 

• hiring U.S.-based recruiters or account managers 

• formalizing employment and payroll processes 

• ensuring ongoing compliance across states as teams grow 

In 2026, operational readiness is increasingly about infrastructure rather than location. Firms that invest early in compliant employment frameworks and scalable processes tend to avoid disruption as they expand. 

Phase 4: Focus, specialization, and sustainable growth 

One common trait among high-growth recruitment firms in the US is focus. Agencies that specialize – whether by industry, role type, or geographic market – often outperform those that try to cover too much too quickly. 

Specialization allows agencies to: 

• develop deeper market expertise 

• build stronger client relationships 

• differentiate themselves in a competitive market 

Relationship-building remains central to success in the US recruitment space. Clients and candidates alike value consistency, accessibility, and trust – all of which are easier to establish when agencies operate within a clearly defined niche.  

Targeting small and mid-sized US businesses 

Many recruitment firms find early success by working with small to mid-sized businesses (SMBs) in the US. These organizations often offer more direct access to decision-makers and faster hiring cycles compared to larger enterprises with formal procurement structures. 

For agencies entering the US market, SMBs can provide: 

• quicker feedback loops 

• stronger personal relationships 

• more flexible engagement models 

This makes them an ideal starting point while agencies refine their US operating model. 

How Lead & Gain can help recruitment businesses 

As agencies grow their US operations, ensuring recruiters are prepared for the market becomes increasingly important. This includes understanding cultural expectations, hiring practices, and operational workflows specific to the US. 

At Lead & Gain, we support recruitment firms by enabling compliant employment in the U.S and helping agencies onboard contractors as they scale. This allows firms to focus on growth while ensuring their operational foundations are in place. Get in touch with our team today.