When the FY 2024 H-1B registration numbers were released on April 28, 2023, it was clear that securing an H-1B visa has become even more unlikely. The introduction of an electronic registration system in 2020 that was meant to simplify the H-1B lottery procedure has paradoxically resulted in a significantly lower chance of selection. There were 780,884 applications for H-1B visas this year, up 61% from 483,927 last year, and just 14.6% of eligible H-1B registrations were selected for FY 2024.

This reaction to this development was severe, with scathing news coverage, fraud accusations, and demands for further modernization. However, despite the media uproar, it doesn’t change the fact that the H-1B visa has become less dependable for companies urgently needing to recruit talent, particularly in the tech industry.

Let’s look at the H-1B visa trends over the last three years to understand the current situation. Then we will explore how remotely employing individuals, particularly those in the tech sector, in Canada could serve as a viable solution when the H-1B no longer feels within reach and other US immigration options aren’t available.

How has the H-1B visa program been trending since 2020? 

Before the H-1B registration system was introduced in 2020, employers were required to submit complete H-1B cap-subject petitions to US Citizenship and Immigration Services (USCIS) during a short filing period starting April 1 of each year. Then, eligible petitions would be selected at random assuming 85,000 applications were received, which for the past decade or more they have been.

By introducing an electronic registration system, USCIS aimed, in theory, to simplify the H-1B cap selection process, resulting in cost reductions and enhanced efficiency for both the petitioners and the agency. When USCIS receives in excess of 85,000 H-1B registrations, the current visa cap, they initiate the electronic H-1B lottery system with those selected eligible to submit H-1B petitions. 

The problem is that the number of registrations has been increasing exponentially ever since, going from 269,424 eligible registrations in 2021 to a staggering 758,994 registrations for 2024 — with just 110,791 of those 2024 applications being selected. The situation was even more disappointing than predicted. The probability of securing a “spot” in the H-1B visa lottery has been plunging further every year, leaving companies and potential employees in an increasingly difficult situation.

While there are calls for change, it remains uncertain whether any real modifications will take place in the H-1B process that would alleviate the challenges. The current circumstances are far from promising.

And while there are other US work visas that companies go for, they aren’t always available for all candidates, including those needed to fill much-needed tech industry job openings. This is where Canada comes in as a potential solution, particularly with its Global Talent Stream (GTS)

The GTS program offers an innovative alternative to US companies that are struggling with the uncertainty of the H-1B visa situation, presenting a more reliable method to attract and hire global talent, particularly in the tech industry.

What is the Global Talent Stream and how can it help US companies who can’t hire tech talent due to the H-1B visa lottery? 

Canada’s GTS program, part of the Global Skills Strategy, allows Canadian employers to easily hire foreign-born tech workers. By fast-tracking the hiring process, the GTS program helps bring skilled talent into Canada, particularly in the tech sector.

Receiving work authorization for a GTS application can take less than two weeks, making it one of the world’s fastest immigration pathways for tech workers, and the GTS program also provides a swift route to permanent residency and, eventually, Canadian citizenship within a few years.

The program has also played a pivotal role in the growth of Canada’s tech industry, enabling Canadian companies to attract highly skilled professionals from around the world. However, it’s not only Canadian companies that can take advantage of the GTS. US companies, both with and without offices in Canada, can also use it to access and retain global talent.

If a US company already has a legal presence in Canada, it can consider partnering with a Professional Employer Organization (PEO) to handle the administrative aspects of Canadian employment. This can include the necessary HR, legal, taxation, immigration, and other administrative operations conserving time and resources.

For US companies with no presence in Canada, there’s another option.

US companies without a legal entity in Canada can still hire tech talent remotely using an EOR.

Partnering with an Employer of Record (EOR) means smaller companies, or companies that just want to hire a few employees, can take advantage of having those employees based nearby in Canada without having a presence there. By having them based remotely in Canada, that worker can easily travel to the US on a short-term basis or collaborate with the US team in person. So, how does it work?

The EOR effectively steps in as the local employer from a legal perspective and assumes responsibility for hiring and terminating employees, payroll, stock and benefits management, HR, and many other services. The US employer remains responsible for the employee’s work, salary, and benefits package. Working with an EOR can make it simple to build an international presence without the associated stress, time, or overhead and offers a viable solution to the H-1B visa program.

If a company does eventually decide to create its own legal entity and wants to transition off of the Canadian EOR, an EOR can help the US company in setting up its Canadian legal entity, transitioning away from the EOR, and providing ongoing PEO support moving forward.

Syndesus provides EOR services in Canada for US-based companies 

Syndesus can help you hire or move your skilled tech workers to Canada, whether or not you have an office there. You can bypass the uncertainty, lottery, and backlogs and instead, hire and retain all the skilled tech employees you need, remotely in Canada. 

As an EOR, Syndesus can legally hire your current or prospective employee in Canada while taking care of the immigration, billing, HR, legal and other paperwork. 

If you are interested in learning more about how Canada’s Global Talent Stream can help your US company move crucial tech talent to Canada, hire directly into Canada when the US isn’t an option, or otherwise tap into a database or highly-trained tech workers ready to immigrate to Canada for the right tech job, reach out to us to learn more.