While the US has been undergoing its own economic troubles recently, it is still considered by some as an attractive destination for executives interested in furthering their careers. What is not so well known are the significant differences in employment benefits that senior executives can expect between the two countries.
Spindler was recently asked to provide advice to a large US renewable energy business that was interested in entering the UK market. It was the first time this company had worked in the UK and it was critical that they found the right people to head up their UK division.
Providing advice to customers looking to launch or grow operations in the UK is something that Spindler gets involved in regularly. In this case the discussion centred around what would make an acceptable (and attractive) package for UK managers.
There are a number of key differences between the standard US and UK employment packages:
Holiday entitlement:
In the UK most executives would expect 25 days holiday per year. In the US many companies restrict this to just 10 days and it’s not as if the Americans get significantly more public holidays (10 US vs 8 UK) to make up for it! Over time your holiday allowance can rise but you would have to work five years to earn an extra week.
Company car:
In the US a company car (or car allowance) is not nearly as common an element in employment packages as it is in the UK. In the US company cars are available at the top levels of management whereas, in the UK, a car, or car allowance, is commonplace from middle management upwards.
Healthcare:
Healthcare is an important perk in the US, but unlike most instances in the UK it is not fully funded and may not cover the full cost of treatment. Employees are expected to contribute to their healthcare costs.
Criminal record checks / drugs tests:
In the US many candidates have to undergo criminal record checks and mandatory drug tests before they are appointed. While this is true for certain professions in the UK (i.e. teaching) this is by no means commonplace.
'At Will' contracts:
Many executives in the US are employed on ‘At Will’ contracts. An 'At-Will' employee is someone an employer can terminate at-will for any reason, or for no reason at all – at any time. Its application varies from state-to-state but it still provides employers with significantly more power than in the UK where disciplinary or redundancy procedures have to be followed.
Of course there are exceptions to every rule and packages in the US do vary from company to company and state to state. Nevertheless the basic facts seem to indicate that, at least in terms of employment packages, the grass is greener for senior executives on this side of the pond!
While there are clearly significant differences between UK, US and even European packages, Spindler is well versed in advising its clients on what they need to be offering in order to tempt the right candidates.
