In nearly every country, hiring through an employer-sponsored visa is a difficult process to navigate for both employers and employees. For example, an employer is sometimes limited to hiring talent from abroad only in certain sectors. In other cases, they must prove they are unable to find the skills they need in the local workforce. For employees, there is often a long ‘to do’ list and red tape to navigate before they arrive as well as documentation to maintain once they are in-country.
Partly as a result of these challenges, demand for employer-sponsored visas is declining in many countries. In the United States, data compiled by Bloomberg found the H-1B visa program, which is designed for employers to hire skilled international workers, processed fewer applications in 2021 than in 2020.
The decline in demand for employer-sponsored visas may come as a surprise, especially considering the ongoing labor shortage and more businesses reopening in the rebound from the COVID-19 pandemic. To better understand the drop off in employer-sponsored visas, we spoke with GoGlobal Partner Nick Broughton. Having worked extensively with companies as they build global teams, Nick shared his insights on how the evolving labor landscape is influencing decisions to hire locally or go through the visa process.
What are the top challenges for employers looking to employ workers via an employer-sponsored visa?
Employers looking to use an Employer of Record (EOR) to help sponsor a visa must understand it’s not that straightforward. Since immigration itself is a political topic, visas are also political. For example, if it’s an election year, employers should be aware that it will often be more difficult than a non-election year to sponsor a visa.
The notion of “we welcome every nationality” might be well and good in theory but, in practice, countries have processes that prioritize some nationalities over others. Some countries, like Singapore, are now using a diversity nationality quota system for visas. So, employers cannot assume that just because an employee is from a specific country, they will more easily be able to sponsor their visa.
For employers, the ‘hire local’ movement is a common theme now. Even if it does not work out for an employer in the end, at least they will have the proof they tried to hire locally but were unable to source that particular skill set. This is often a prerequisite for granting visa sponsorship.
What are the top challenges for employees in obtaining employer-sponsored visas?
Because the process of sponsoring a visa is a pain in the neck, employers generally don’t want to take it on unless you’re really worth it and have credentials they cannot easily get otherwise. Plus, employers typically assume liability for the actions of you and your dependents once in the country.
For employees, the process can be expensive and time-consuming with financial considerations needed for taxation, housing, healthcare, security, etc. While expat relocation packages are often offered, there are sometimes gaps in benefits and not everything will be covered. We’ve also seen the sponsored employee or their spouse become unhappy after relocating. Very often, this leads to an expedited return back to the home country – making the entire relocation a sunk cost.
How has the COVID-19 pandemic impacted employer-sponsored visa schemes? Are there additional delays, provisions or pitfalls? How are companies responding?
Thanks to delays and restrictions triggered by the pandemic, embassies are backlogged and visa processing is significantly slower in many cases. The pandemic has also ushered in a lot more requirements for obtaining a sponsored visa, such as the need for vaccination and booster. Employers should note the medical care infrastructure in some countries may be inadequate for handling a rise in COVID-19 cases. Language barriers can exacerbate the situation further if an employee is to fall ill.
Many companies are responding to these pandemic-induced risks and pitfalls by limiting visa sponsorship opportunities. Even with the recent high-profile announcement from Airbnb that their employees can work from anywhere, the situation is such that the company will likely have to limit employees to working within their home countries.
How does GoGlobal’s EOR solution help companies circumvent some of the challenges lurking in the employer-sponsored visa process?
Most importantly, GoGlobal’s proven EOR solution enables companies to jump on board the growing trend of hiring talent locally – quickly and compliantly – rather than obtaining sponsored visas for openings abroad. Since sponsored visas are indeed a pain, an effective EOR solution like GoGlobal’s is often the ideal, risk-free way of growing a team.
For cases where a sponsored visa is required, GoGlobal has long standing relationships with immigration authorities in the countries we operate in. As part of our services, we can help companies understand quota and capital requirements for obtaining a sponsored visa. We’re also on the ground in-country, functioning as a local outsourced HR to take care of the candidate and family when they come in.
FAQs
If a question is asked about sponsorship as part of an online application for a full-time position or an internship that could potentially lead to full-time employment, we recommend that you answer “Yes” that you will need sponsorship.
How do I convince a company to sponsor my visa? ›
Communicate How Your Employer Will Benefit From Sponsoring Visas—If your company does not yet have a visa sponsorship program, you may need to advocate for establishing one. Some employers are wary of visa sponsorship initially, so you'll need to explain why it's worthwhile.
Why won t companies sponsor visas? ›
Complex and Time-Consuming Process
Employers often avoid H-1B visas due to the cumbersome application process. Handling complex documentation and filing procedures requires significant time and resources, deterring employers from seeking H-1B visas for foreign workers.
How hard is it for a company to sponsor a visa? ›
Complex legal processes: Sponsoring a foreigner for a work visa involves navigating complex legal procedures, paperwork, and regulations. Employers must stay up-to-date with immigration laws and regulations, which can be time-consuming and challenging.
How can I convince my US visa officer? ›
Keep your answers to the officer's questions short, polite, and to the point. The purpose of the documents you present should be clear at a glance to the visa officer. Lengthy written explanations cannot be quickly read or evaluated. Remember, you only have 2-3 minutes of interview time!
How to answer visa questions? ›
While answering the questions asked by the consular officer, the applicant needs to answer directly with confidence and also reassure his/her ties to the native country. The applicant needs to stress his/her intentions of coming back to the native country after the completion of the trip.
How much does a company have to pay to sponsor a visa? ›
Companies can expect to pay between $2,000 and $5,000 per petition, depending on the case's complexity. Filing Fees: U.S. Citizenship and Immigration Services (USCIS) charges filing fees for nonimmigrant visa petitions.
How do you get a US employer to sponsor you? ›
First, your employer is required to get an approved Labor Certification from the United States Department of Labor (DOL). Second, your employer must file an immigrant petition on your behalf (Form I-140). Third, you are required to either adjust status (Form I-485) or apply for your immigrant visa (Form DS-260).
Are US companies willing to sponsor visa? ›
Companies wishing to sponsor a foreign applicant on an H-1B visa will need to follow a legal process which requires a deposit. If the role you're interested in applying for is open to foreign applicants, there's a good chance your employer might be able to sponsor your work visa!
Why are most visas denied? ›
A visa application gets denied for various reasons, such as incomplete documentation, ineligibility for the particular immigrant or nonimmigrant visa categories, and unsatisfactory visa interview performance.
U.S. employers are not required to sponsor employees for immigration. You can freely specify “no sponsorship” in a job ad and refuse to consider people who are not already authorized to work in the US.
Why would sponsorship be denied? ›
Absence of Clear Benefits for the Sponsor
If your request does not clearly highlight how the sponsorship will benefit the sponsor, it is likely to be rejected. Ensure you are specific and clearly demonstrate the value you will provide to your sponsor.
How long does it take for a company to sponsor visa? ›
This process involves multiple steps, such as filing the immigrant petition (Form I-140) with U.S. Citizenship and Immigration Services (USCIS), which takes around 5 to 8 months to process.
How do I ask a company to sponsor my visa? ›
Be Direct and Transparent: Don't beat around the bush – mention your visa status upfront and state your interest in sponsorship. Focus on Value: Explain how your skills and experience directly benefit the company and fill a specific need. Quantify your contributions with data or examples.
How long is a sponsor responsible for an immigrant? ›
An Affidavit of Support is legally enforceable. The sponsor's financial responsibility usually lasts until the applicant either becomes a U.S. citizen, or can be credited with 40 qualifying quarters of work (usually 10 years) under the Social Security Act.
How do you answer who is your sponsor? ›
If your parents are your sponsors, make sure to mention their names; if someone else is sponsoring you, mention their name and your relationship (e.g., “My uncle, James Lee, is paying for my education.”).
How do you respond to a sponsorship message? ›
We are grateful for your support of [Organization name]. Thank you for believing in us and allowing us to continue doing what we do. We look forward to continuing our work together and hope that you will be able to sponsor us again soon. If there is anything we can do for you, please let us know.
How to answer will you now or in the future require sponsorship? ›
In most cases, international students and recent graduates should answer “yes” to the question: Will you now or in the future require sponsorship to work in the U.S.? Even if you can work legally for several years on OPT or CPT, eventually your student visa will expire. Most work visas require employer sponsorship.
How to answer why should we consider you for full sponsorship? ›
I believe I am a deserving candidate for a full sponsorship because of my dedication, passion, and commitment to achieving my goals. I am driven and motivated to excel in my chosen field, and I am willing to put in the hard work and effort necessary to succeed.
