UK-based workforce support for a US manufacturer
How flexible, light-touch HR and payroll services enabled a US-based manufacturer to compliantly employ UK-based staff.
1. Background / Context
A large US manufacturer was looking to employ a small number UK-based staff whose work required extensive global travel. As a US-headquartered business, the manufacturer did not have the in-house expertise required to employ UK-based personnel due to the complexities of UK tax and employment regulations, international travel and payroll.
2. The Problem / Challenge
The manufacturer had to employ UK-based staff to fulfil operational requirements; however, encountered several challenges of managing this internally due to operational, financial and legal risk. These included:
- Limited internal knowledge of UK employment law, contracts, compliance, and statutory obligations
- Risk of UK payroll and tax calculation errors
- Lack of familiarity with UK recruitment standards
- Insufficient employee oversight increased administration of ensuring employee wellbeing, satisfaction and retention
- Cost of registering and ongoing maintenance of UK entity
3. The Approach / Solution
The manufacturer appointed BAE Systems Strategic Aerospace Services Limited (BSL UK) to provide a light-touch HR support contract which was precisely tailored to their needs. BSL UK’s approach included the following steps:
- Administered UK-compliant payroll, including HMRC submissions, NI, and pension obligations
- Recruited and onboarded employees, ensuring accurate job scoping and alignment with US requirements
- Provided travel insurance to protect employees undertaking frequent international travel
- Offered cross-border HR guidance, translating UK legal and employment expectations to the US leadership team
- Conducted regular employee check-ins to maintain engagement, manage concerns, and support wellbeing
- Ensured the service remained fully scalable, enabling easy expansion of the UK workforce as demand increased
4. Execution / Implementation
BSL UK seamlessly integrated UK-based employees into the manufacturer’s operations. BSL UK worked closely with the US leadership to fully understand their requirements, and then managed all recruitment, vetting, contract drafting and employee set up under UK legislation. The light touch support involved coordination and execution of UK compliant payroll, sourcing travel insurance to accommodate international mobility, routine engagement to ensure the employee felt supported and streamlined communication and strong operational foundations to support future contract extensions. BSL UK received positive feedback from their customer and secured a 100% increase in contract requirements in its second year.
5. Results & Impact
- Successfully filled and maintained 100% role fulfilment for the length of the contracts
- Eliminated compliance risks associated with managing UK employment from overseas
- Reduced administrative burden significantly for the US leadership team
- Built a stable, efficient HR and payroll infrastructure suitable for future team expansion
- Ongoing discussions to expand the contract, supported by strong performance
6. Key Takeaways / Lessons Learned
Local knowledge and expertise can greatly enhance cross‑border HR capability. When an overseas employee group is small, engaging a UK‑based company to provide a light‑touch HR service can be a very cost‑effective option. Setting up a local entity is often expensive and time‑consuming, and the absence of in‑country knowledge can create additional risk. Contrastingly, maintaining strong communication with an experienced local HR supplier helps streamline processes, improves productivity, and significantly reduces compliance risks.
7. Conclusion
BSL UK’s light-touch HRO service delivered significant cost and administrative efficiencies, enabling the customer to meet operational needs without the burden of managing cross-border teams. Employee satisfaction remained high thanks to locally managed services such as payroll, wellbeing check-ins, and travel insurance, which helped prevent issues before they arose. The working model proved highly effective and is fully scalable to support any future requirements.