Differences Between UK and US Businesses

The UK and the US are reported to have a ‘special relationship’ – supporting each other’s interests on the global stage. But despite their similar aims and values, these two countries do have their differences. As well as one being 40 times larger with 230 million more inhabitants, when it comes to business the two countries like to operate a little differently. So if you’re thinking of moving between the two or setting up shop across the Atlantic, here’s the key differences between them.

Even bigger than the Big Apple

Due to America’s vast size, their market is drastically larger. This means there are many more companies across the states, covering hundreds of industries, and rich opportunities for employees to grow. 

With the UK being smaller, the country tends to focus on more niche markets and improving efficiencies, rather than huge growth. The UK has a modest 5.6million private sector companies while the US has over 33 million.

Laying down the law

The UK has uniform rules and regulations across the country which may differ slightly between England, Wales and Northern Ireland. Taxes and employment laws are strict and applied blanketly, to ensure consistency and fairness. 

Meanwhile, in the US, business rules can change from state to state. It’s up to these individual areas to decide their policies which means you’ll have to be clued up on the systems in place wherever you are.

Hustle or holiday culture?

The US is a highly competitive market. There’s a strong culture of working hard to earn promotions and eye-wateringly large salaries. America doesn’t have many government-mandated leave policies so US businesses are famed for offering very little paid holiday. 

In the UK, national law means companies have to offer at least 28 days paid leave which can include bank holidays or these may even be additional. This generous holiday entitlement means there is more protection for employees’ rights and a stronger focus on work-life balance. To support small businesses in managing employee records and compliance, using HR and payroll tools can be a game-changer in maintaining smooth operations and ensuring adherence to employment regulations.

Tapping into technology

The government likes to think of UK businesses as lead innovators when it comes to technology. But although the country is strong on digital adoption, there is a heavy focus on compliance and data security which can slow the pace of change.

America is a global leader in adopting tech innovations for businesses. This makes sense when you consider Google, Apple and Microsoft laid their roots here. The country pioneered cloud-based solutions, fintech advancements and business systems across HR, marketing and more.

Ready for a road trip?

America is a huge country. The shoreline runs a whopping 95,471 miles while east to west stretches 2,800 miles and north to south is 1,650 miles. It’s not surprising that businesses which rely on travel and logistics are spending large sums on fuel. For that reason, business fuel cards are highly popular with a wealth of options to choose from. However, petrol and diesel are in fact almost 46% cheaper in the US which is a great benefit for any company determined to keep costs down.

The UK is a much more manageable distance for road users. From top to bottom it’s just 600 miles and only 300 miles at its widest. Fuel cards in the UK are still prevalent, offering employees a convenient and quick way to pay for the cost of their travel. Due to higher taxes, and import levies, fuel is more expensive and the prices have fluctuated considerably in recent years.

Advertising wars

The Western world thrives on consumerism. And the UK is no different. We love to spend and shop, which means marketing and advertising firms are fighting for our attention. However, the UK takes pride in crafting arguably more subtle advertising that focuses on wit, humour and clever messaging.

American marketing is stereotyped as bold and flashy. Price tags and discounts are flaunted in consumers faces and commercial breaks are long. Just think of the Super Bowl with its coveted, lucrative (and expensive) advertising slots. The focus is on grabbing attention and making strong claims.

Getting the boot

As discussed, US employment law is a little laxer compared to the swathes of red tape in the UK. Hiring is fast-paced and firing follows a similar trend. "At-will" employment is common, meaning employers or employees can terminate contracts at the drop of a hat.

In Blighty, the process is more regulated and structured. Employees often go through multiple checks during the hiring stages and their contracts are stronger, meaning it’s harder to let employees go without warning or notice.

Conclusion

Now you know some of the basic differences when it comes to US and UK businesses. Of course, each company is different and there are plenty of exceptions to the rule. But overall, there are a few key takeouts:

• America’s size means they dominate the global market and are leaders in digitalisation.
• The UK has tighter employment legislation around taxes, holidays, hiring and firing.
• US road trips dwarf the UK but fuel cards help both countries tackle travel expenses.