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The United Kingdom has lots of benefits for companies seeking to do business there. For starters, they have the second-largest workforce in the European Union area.
The country is also one of the few expected to see an increase in the labor pool over the next 15 years. A manageable tax system and strong infrastructure make the United Kingdom an exciting choice for businesses.
SERVIAP can help with your global expansion needs. Contact us today to learn how you can expand your business with PEO in the United Kingdom.
The United Kingdom has a significantly large pool of labor involved in the tech industry. In 2021 alone, 7.2% of the workforce contributed approximately GBP 101.8 billion to the United Kingdom economy. All areas of the tech workforce are expected to continue to expand in the coming years by an average of 2.5% each year.
In addition to its large skilled workforce, the cost of employment within the United Kingdom is less than other nearby countries, such as Germany, France, Netherlands, and Ireland, due to lower employer Social Security contributions.
Key business sectors for the United Kingdom include:
- Finance and Banking: Over 7% of the total working population within the United Kingdom works in the finance and banking industries. While this sector is primarily centered in London, a large number of employees work in other cities, such as Edinburgh, Manchester, and Leeds.
- Information Technology: This sector has grown tremendously over the past decade. Accounting for over 7.5% of the total working population, it is expected to continue to grow over the next few years.
- Construction: Construction currently accounts for approximately 10% of the country’s working population. This work includes both new homes and reconstructions.
- Healthcare: Approximately 12% of the working population of the United Kingdom is involved in this sector.
Other important sectors include logistics, manufacturing, and oil and gas.
The most common sectors for outsourcing include IT and BPO. These areas can typically be outsourced to lower-cost specialists who can perform essentially the same function as more expensive employees. Other areas commonly outsourced include human resources and customer service.
Commonly, outsourcing companies do not set up business in the United Kingdom because employees or contractors for these types of business models may be obtained in lower-cost countries.
Some 92% of the United Kingdom speaks English as their native language. The remaining 8% who do not claim it to be their first language are generally able to speak English “well” or “very well.”
The average annual wage in the UK is GPB 29,600, according to a recent survey. However, salaries vary significantly depending on the type of position held. A highly trained computer engineer can expect a salary of GBP 48,000, while a nurse may earn GBP 31,000.
There are a number of cities within the United Kingdom that boast significant benefits to organizations seeking to do business within the country. These include:
- Milton Keynes: This city is known for its scientific, professional, retail, and technical sectors. There are a number of large businesses that call the city home, including Argos, Domino’s Pizza, Mercedes Benz, and Suzuki. On average, 42% of new businesses formed in Milton Keynes survive after five years.
- London: Known as a major national and international player for finance, London also boasts lots of activity in the media, technology, and tourism sectors. The city is responsible for 30% of the country’s GDP.
- Sheffield: While previously dominated by steel manufacturers, this city has evolved as a welcoming hub for startups, especially in the sport and manufacturing sectors. The city is known for its advanced technological expertise, particularly related to production.
Other cities popular with enterprise include Leeds, Bristol, and Manchester.
Turnover within industries in the United Kingdom is relatively low, especially in the financial services, IT, health care, and education sectors. Industries with the highest turnover include mining and quarrying and arts and entertainment.
Companies can expect to retain employees when there is a culture of good benefits, opportunities for advancement, and a strong wage base.
SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere.
PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization. Contact us today to learn more about how you can expand your business in the United Kingdom.