The United States has long been a destination for international students, thanks to its world-class universities. However, a growing number of these graduates are now looking outside the US for employment after completing their studies, making it increasingly challenging for employers to retain US-educated workers.
Countries like the UK, Australia, and Canada are attracting global talent with simplified immigration processes, clear pathways to permanent residence, and citizenship incentives.
This article explores the driving forces behind this shift, focusing on US immigration challenges. It also highlights how US employers can hire and retain global talent despite these barriers.
How the H-1B Visa is Driving Talent Away
At the core of the issue is the H-1B visa. This visa is critical for international students seeking long-term employment in the US.
When students enter the US for their studies, they do so on an F-1 visa. They also receive access to the Optional Practical Training (OPT) program, which allows them to work in their field for one year after graduation. For STEM graduates, this period can extend up to three years.
Many students hope to stay and work in the US beyond their OPT period. Unfortunately, only a fraction of them succeed. Just 11% of foreign-born bachelor’s degree recipients and 23% of master’s degree recipients manage to secure long-term employment in the US.
The H-1B Lottery: A Major Roadblock
The primary hurdle for these students is the H-1B visa process. This visa is essential for most international graduates wanting to continue working in the US. However, obtaining it has become increasingly difficult.
The challenges include:
- Low selection rates: In 2023, over 780,000 H-1B applications were filed, with only 14.6% selected.
- Stringent requirements: Many applicants struggle to meet the complex eligibility criteria.
After investing years of effort and significant financial resources in a US education, many F-1 visa holders on OPT are left disheartened when their H-1B applications are rejected. For these graduates, the H-1B lottery has become a bottleneck that pushes them to seek opportunities elsewhere.
The Growing Appeal of Global Talent Visas
Countries like Canada, the UK, and Australia are stepping in to fill the gap. These nations offer global talent visas with:
- Simplified application processes.
- Clear pathways to permanent residency and citizenship.
- Fewer restrictions on employment opportunities.
For many international graduates, these programs offer a more stable and predictable future compared to the uncertainty of the US H-1B process.
How US Employers Can Retain Talent
So, how can US employers avoid losing valuable international talent? The key is creativity. Employers can leverage other countries’ more favorable immigration pathways, such as Canada’s Global Talent Stream (GTS), by hiring talent remotely.
Leveraging Remote Hiring with PEOs and EORs
For businesses without a physical presence abroad, partnering with a Professional Employer Organization (PEO) or Employer of Record (EOR) can be a game-changer. These organizations handle:
- Employment compliance with local laws.
- HR, payroll, tax, and benefits administration.
This allows US companies to hire remote employees in other countries without establishing an office there. Here’s how these solutions work:
If You Have an Office Abroad
For companies with existing offices in Canada or other countries, the process is straightforward. They can hire locally and potentially transfer employees to the US in the future if needed.
A PEO can streamline this process by managing administrative tasks like taxes and HR, while the liability remains with the US company.
If You Don’t Have an Office Abroad
For companies without an international presence, an EOR provides a seamless solution. The EOR becomes the legal employer for the worker, handling compliance and liability while the US company oversees day-to-day duties.
This approach allows US companies to access global talent without needing to navigate complex international employment laws themselves.
Syndesus: Helping US Companies Retain International Talent
If your company is struggling to retain F-1/OPT workers, Syndesus can help. We specialize in hiring talent remotely in Canada through our PEO and EOR services.
Whether your business has an office in Canada or none at all, we manage:
- Immigration paperwork.
- Payroll and tax compliance.
- HR and other administrative tasks.
As a Canadian Employer of Record, Syndesus helps US companies retain talented workers by offering them opportunities to live and work in Canada. This ensures your workforce stays intact while you focus on growing your business.
Get Started Today
Don’t let immigration hurdles force you to lose talented employees. Reach out to Syndesus to learn how we can help your company hire and retain talent in Canada.
