Got the world at your feet?

In a constantly shrinking world with an increasingly global economy, it's hard to overestimate the import

In a constantly shrinking world with an increasingly global economy, it's hard to overestimate the importance of being an international player.

It's also no longer the sole preserve of the big boys in the market, with many smaller recruitment firms now looking to extend their operations overseas.

The communications revolution coupled with cheaper travel and an expanding EU has made it far easier and more attractive to open an international office.

The saturation of the UK marketplace and the desperate need for skills and manpower from other European countries have led to a host of agencies specialising in international recruitment.

Professional services recruiter Badenoch & Clark has recently opened a European office in Luxembourg.

Adam Nicoll was in charge of launching the brand across Europe and says that setting up in Europe is not as radically different as many imagine it to be.

"Any business which revolves around relationships and people is bound to be impacted by language and culture - and the recruitment industry is no exception. However, many of our clients are global and the business language is predominantly English, so the differences are not as great as you might think," he explains.

"The cultural idiosyncrasies are perhaps more telling. For example, in Luxembourg you can only resign on the 1st and 15th of every month. Business etiquette can vary too and each country tends to have its own way of doing business."

Despite this, expanding beyond the UK's borders is by no means straightforward and Nicoll believes communication difficulties can often pose a deadly threat to new ventures.

Ian Owen, senior partner at recruitment firm BMS, opened the company's first overseas office in October and, for him, that meant going literally to the other side of the world. BMS, which employs around 170 staff in the UK, started the Sydney operation after four months of research and careful planning.

"I don't think the UK market is saturated yet, but it is very competitive. Many recruitment firms are looking at emerging markets because there is the potential for major growth," he says.

Owen says the two key factors in making the venture a success are the people and the economic conditions of the host country. Planning and research are also vital as business cultures and laws will also differ markedly in each part of the world.

"The economy has to be right and you have to be comfortable that the manager you appoint can cope with running a business in another country. You also have to be sure the staff can handle living and working on the other side of the world," he says.

The cultural, legal and procedural differences between nations can also pose problems when setting up in a new country, even where they may seem outwardly similar. You just have to look at the differences between England and Scotland to understand that even close neighbours have very different rules and national perspectives.

"There can be significant differences in law and ethos. You need to recognise that there are different ways of doing key things," he says.

Foreign government agencies can be an amazing source of guidance and support when setting up, supplying a wealth of experience and knowledge about the market, legislation and potential partners or advisors.

Owen says that Invest Australia was a crucial source of advice on procedures such as obtaining visas and the general business rules prior to opening the Sydney office.

"There's lots of red tape around visas and general business rules but you can get support from local partners and the various national agencies," he adds.

Brian Wilkinson is Commonwealth zone manager at Vedior, which operates across the globe under various brands. He has vast experience of the global market and feels that agencies need to make a specific connection with the country they want to trade in.

Vedior tends to expand by acquisition when it moves into a new market, and Wilkinson believes this approach helps retain a local knowledge and outlook.

"Candidates are attracted to specialist brands and niche businesses within their own sector, so it's very important to have that kind of local franchise. You need to be clear about why you are going into any particular country. Often companies tend to go off on an ego trip and that's the wrong way to go about it," he says.

At the outset, agencies need to decide whether they will expand through acquisition, expansion or new start-ups, but this decision can be coloured by legal requirements in the chosen country.

For example, it may not even be possible to have the majority stake in a new business because some countries insist that a local firm owns at least 51% of the shares.

"The war for talent coupled with acute skills shortages means recruiters are having to become international players to be successful. It tends to be much easier for a UK recruiter to work in the Commonwealth because of the shared language, value systems and business culture," he advises.

More and more recruiters are now are setting up overseas specifically to get foreign workers to come to the UK. The business will usually provide a complete solution for employers and candidates, taking care of everything from visas to accommodation,"The widening EU has made it easier for recruiters that want to open a branch on the continent and many firms have already started to tap into new sources of labour from the accession states, such as Poland. If you can grab candidates in their home territory it gives you a huge competitive advantage," he says.

Wilkinson thinks British companies are well placed to exploit recruitment opportunities across Europe, because practitioners have so much experience in what is probably the most advanced market in the world.

"UK recruiters have an automatic advantage because we have such a defined and sophisticated recruitment market. They can take that experience to countries such as France where the market is nowhere near as developed," he says.

Location is obviously another fundamental consideration and picking an area that provides access to several national markets can be beneficial. Ellis Fairbank has recently opened in Strasbourg because of the access to the rest of mainland Europe.

"We were looking at the regional market and felt that we needed a European hub. Most people there are multi-lingual and we can cover a number of European countries from one place," says commercial director Harry Cross.

He warns that some tax and legal regimes can be complicated but says that souring good, local accountants or legal advisors will really pay dividends.

He also believes that recruiters should really scrutinise every aspect of the territory without making any assumptions about whole regions. Certain areas, particularly the US, have proved very difficult to crack, while others can be quickly destabilised by political changes or terrorism.

"People can get carried away with the more exotic markets and ignore what's on their doorstep. The US has been a graveyard for so many recruitment firms and there seems to be a mentality that makes it very difficult for foreign firms to succeed there," he says.

Travel and experiencing different cultures is now so aspirational that Iain Herbertson, vice-president of Manpower Asia Pacific, probably has many people's dream job. Based in Singapore he is in charge of countries as diverse as China, India, Australia and Japan, running a huge operation that employs more than 3,000 people.

Covering such a huge geographical market Herbertson is perfectly placed to offer advice and he is quick to stress the importance of understanding the local market and people. "The key challenge is knowing the market well enough and being able to operate with enough verve to satisfy the local needs. You also need to get involved in the local economy - it's no good just turning up with a load of UK expats.

"In some cases the business is on the other side of the world with an eight-hour time delay. This can cause communication problems and to a degree the business needs to be self-standing," he says.

He predicts that any international experience will be increasingly valuable as countries such as China and India continue to expand.

"In dollar terms, the Chinese economy is already the size of the UK economy and is growing at around 9%. This future superpower will have a huge impact on people, skills and recruitment so there are amazing opportunities for the future," he adds.

Ultimately, the success or failure will still largely depend on the people out in the field developing the business and this still requires some familiar traits.

"You need to be flexible, determined and understanding to succeed - but more than anything else you have to be interested in people."

l Don't expand as part of an ego trip - it won't workl Pick local partners carefully and ensure they are experts in their home marketl Choose the right team to launch the brandl Think about all the cultural differences to tackle - doing business and dealing with people can vary hugely from country to countryl Ensure there are solid and reliable communication channels l Dubai is becoming an increasingly fashionable recruitment destination because of the expanding economy and diversification of business.

l Eastern Europe has been the honeypot for British recruiters since the A8 countries joined the EU in May 2004.

l The continuing growth and vibrancy of Australia is attracting some recruiters to head Down Under. English speaking and with vast experience of working in Europe Australian candidates are helping to drive this market.

l Although most of the talk about the Far East is centred on the growing Chinese behemoth, the whole of Asia is becoming a important global player because of a general economic recovery and an insatiable thirst for knowledge.

l Singapore was always seen as the most important trading point in the days of the British Empire, but huge levels of modernisation and investment mean that n

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