Precautionary measures related to the COVID-19 pandemic,
like travel restrictions and government office closures, have made it more
difficult for foreign workers to be issued visas. There were just 143 new
visas issued this May in the U.S., compared with more than 13,500 visas in May
of last year.
Unfortunately, this downward trend impacting foreign employment in the U.S.
will intensify in the coming months, thanks to an executive order signed on
June 22, 2020. The new order will extend a freeze on H1B visas—among others
types of work visas—through the end of the year.
What are H1B visas and who uses them?
H1B visas allow organizations in the U.S. to temporarily employ foreign
workers with specialized skills for a fixed period of time—typically three
years with the option to extend for an additional three years.
Predominantly, these visas are utilized by the U.S. tech industry, as
workers in “computer-related occupations” account for nearly 70% of all H1B
applications
.
What does the executive order mean for businesses and individuals?
Since 85,000 new H1B visas were planned for approval in 2020, the June
executive order will certainly be felt by both foreign workers and employers
in the U.S. Here are some potential impacts:
- Foreign nationals planning to enter the U.S. and work under an H1B visa will be unable to do so until the ban expires.
- Employers seeking skilled labor will need to reconsider their hiring and recruitment strategy and possibly reevaluate business growth projections as projects begin to stall.
Is there an H1B visa alternative to help meet company objectives?
Yes and no. Because the executive order has suspended visas for foreign
employees in the U.S., any H1B visa alternative would need to come from
within the organization—as a change in their hiring strategy in order to meet
talent needs.
Many fast-growing start-ups that depend on highly skilled engineering teams
have addressed talent concerns by hiring in emerging tech markets outside of
the U.S. and Silicon Valley, such as Toronto, Tel-Aviv or Warsaw. Taking a global
approach to staffing has allowed these organizations to keep projects moving
forward, even during times of geopolitical risk.
Any organization seeking to hire skilled employees for specific roles should
consider a more agile approach to employment as their H1B visa alternative.
Hiring workers in their home countries—rather than bringing them to the U.S.
through specialized visa programs—has proven to be a strategic opportunity for
employers.
How a global employer of record can act as an H1B visa alternative
With a global employer of record, organizations can hire workers in their home countries, virtually anywhere in
the world, without first having to set up a legal business entity .
Our flexible employer of record solution, Global Employment Outsourcing (GEO),
allows organizations with diverse talent needs like yours to build
international teams quickly and compliantly. We’ve helped hundreds of
organizations expand their talent pool by hiring foreign workers—without the
need for an H1B visa—for over 10 years.
GEO can:
- Compliantly hire and pay candidates on your behalf in over 179 countries—often in as little as two weeks
- Handle HR, employment and salary requirements—so all you need to manage is your employees' day-to-day activities
- Support employee populations ranging from one to hundreds of workers
- Employ workers in their home country for as little as three months—once you can employ them in the U.S., we seamlessly transition employment to you
Contact us today to discuss how GEO can help you keep your projects moving—in spite of changes to
H1B visa rules—by employing your critical workers on your behalf, in their home country.
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