Hiring International Students: Us Companies Not Ready?

The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations. The process of obtaining an H-1B visa can be complex and costly, with companies needing to file a petition on behalf of the international employee and only a limited number of visas available each year. The OPT program, which allows international students to stay and work in the US for a year after graduation, has tightened eligibility requirements, making it more difficult for international students to find employment in the US. Some companies are hesitant to hire international graduates due to the additional costs and legal requirements involved, and the risk of visa sponsorship.

Smaller companies may not have the resources to hire international students

Additionally, smaller companies may not have the capacity to train international students adequately. According to US immigration regulations, companies must have enough resources and trained personnel to train international students properly. This ensures that the students can attain their training objectives. Smaller companies may lack the necessary resources and personnel to provide effective training, making them less likely to hire international students.

The misconception that hiring international students is expensive and time-consuming also plays a role. Some employers believe that the process is more complicated and costly than it actually is. In reality, there is no additional cost to the employer when hiring international students pursuing or about to graduate from an academic program. The paperwork and fees are typically handled by the student, their school, and the United States Citizenship and Immigration Services (USCIS). However, smaller companies may still be hesitant to hire international students due to these misconceptions, believing they lack the resources to navigate the process.

Furthermore, smaller companies may be more cautious about taking on the financial risk associated with hiring international students. Sponsoring an international student for a visa can be a significant investment, and smaller companies may have limited budgets or prefer to allocate their resources elsewhere. They may also be concerned about the potential for higher turnover rates among international students, who may return to their home countries after their work authorization expires. As a result, smaller companies might opt for employees who are "less risky" and do not require visa sponsorship.

The cost and processing time of visas are a barrier

The cost and processing time of visas are significant barriers for international students seeking employment in the US. The financial burden of visa applications can be substantial, with fees ranging from $520 to $8,000, including attorney and USCIS application fees. This expense can be prohibitive for students, especially when coupled with the lengthy processing times that can delay their entry into the job market.

The processing time for visas varies depending on the type of visa and the specific circumstances of each case. For example, the USCIS processing time for STEM OPT can take up to 3-4 months, with some cases taking even longer, up to 5-6 months. Similarly, the H-1B visa, which is commonly sought by international students, has a lengthy application process. Employers must first submit registrations during a designated period in March, followed by a lottery system to select beneficiaries. The entire process, from registration to filing a complete petition, can take several months.

The L-1 visa, intended for intra-company transferees, also comes with a substantial processing fee of $1,385, plus an additional $500 anti-fraud fee. This visa is valid for up to three years and may be extended for a maximum of seven years for managers or executives and five years for workers with specialized knowledge. The O-1 visa, which is a temporary work visa for individuals with extraordinary abilities, has a similar fee structure.

The time and cost involved in obtaining these visas can be a deterrent for both students and employers. Students may face challenges in securing employment due to the lengthy processing times, and employers may be hesitant to incur the costs and delays associated with sponsoring international students. This is especially true for smaller companies that may not have the resources or experience in navigating the complex visa application process.

To increase their chances of success, international students are often advised to pursue higher education, specifically PhD programs, to gain specialized skills that make them more attractive candidates for visa sponsorship. Additionally, some students may consider alternative destinations, such as Canada, which may offer more favourable visa options and a less competitive job market.

Companies may be skeptical of hiring candidates who require visa sponsorship

Companies may be skeptical of hiring international students or graduates due to the additional costs, time, and administrative burden involved. The process of sponsoring a candidate for a work visa can be complex and costly for employers, with fees ranging from $3,000 to $8,000, including attorney and USCIS application fees. The USCIS processing time for STEM OPT can take up to 3-4 months, with some cases taking even longer. Companies may also be concerned about the risk of hiring someone who may require additional support or may not be able to commit to a long-term position.

Additionally, some companies may have a preference for hiring US citizens or permanent residents to avoid the hassle of sponsorship. This could be due to a lack of understanding of the process or a bias towards local applicants. Smaller companies, in particular, may be less likely to hire international students as they may not have the resources or expertise to facilitate the process, as suggested by a former international student on Reddit. They mention that larger companies like FAANG offer better prospects for international students due to their robust immigration support.

The current job market and economic climate may also play a role. In a competitive market with an abundance of qualified US citizens, companies may be less inclined to consider international students. Moreover, companies that are downsizing or facing financial constraints may opt for candidates who are "less risky" and do not require additional sponsorship or paperwork. This sentiment is echoed in a Reddit post, which suggests that companies are currently more inclined to stick to "low-risk" employees due to the challenging economic climate.

However, it is important to note that many employers are open to sponsoring international applicants, and it is not an uncommon practice. Companies that have previously hired international interns or employees are likely to be familiar with the process and more open to sponsorship. Additionally, certain visas, like the H-1B, are used to fill positions that are difficult to fill with local applicants, typically at senior or specialized levels. International students and graduates should not be discouraged, but it is essential to be well-informed about the process, visa options, and companies that are known to hire international applicants.

The job market is competitive, with companies favouring local applicants

The job market for international students in the US is highly competitive, with companies often favouring local applicants. This preference for US citizens is not just by chance; there are several reasons why companies may be hesitant to hire international students and new graduates. Firstly, the process of hiring international employees is more complex and costly. Companies are responsible for filing petitions and applications on behalf of their international employees, and the total cost of applying for a visa can range from $3000 to $8000, including attorney and USCIS application fees. Companies may also need to retain experienced immigration attorneys to facilitate the process, adding to the overall expense.

Additionally, the job market is already flooded with applicants, particularly in certain fields. For example, the tech industry has seen an influx of qualified US citizens due to recent layoffs, increasing the competition for international students. Companies may also be trimming down their workforce to reduce costs and stick to employees who are less "risky" and do not require visa sponsorship. This trend is also reflected in the increasing number of job postings with "US Workers Only" requirements. An analysis by Gartner Inc for the Wall Street Journal found an 18% increase in such job advertisements in the first half of 2018 compared to the previous year, with 877,000 jobs requesting US citizenship or work authorisation.

International students and graduates often face additional challenges in the US job market due to stricter eligibility requirements for certain roles and visa programmes. For example, the OPT programme, which allows international students to stay and work in the US for a year after graduation, has tightened its requirements, discouraging prospective international students from applying to graduate programmes in the country. Instead, they are turning to alternatives in countries like Canada and Australia, which offer more favourable job prospects.

Despite these challenges, some companies are still open to hiring international students. Larger companies, such as FAANG, tend to have more robust immigration support and may be better equipped to handle the process. Additionally, some companies, like Discover Financial Services, still sponsor visas for international staff but focus their recruitment on applicants without visa requirements. However, it is essential for international students to be mindful of the competitive landscape and the potential biases of companies towards local applicants when navigating the US job market.

International students may not have the desired level of specialisation or qualifications

International students may not possess the desired level of specialisation or qualifications that US companies seek. This is particularly evident in the case of master's degree holders, who may not be considered as desirable as PhD candidates for certain positions. For instance, in the field of programming, companies might prefer PhDs over master's degrees as the former indicates a higher level of research and specialisation in a specific area.

Additionally, the market for junior-level positions is often flooded with applicants, reducing the need for companies to sponsor visas for international students. Companies may also prefer to hire US citizens or permanent residents to avoid the additional costs and time associated with visa sponsorship. The H-1B visa process, for instance, can cost between $3,000 and $8,000, and the company must file the petition on behalf of the international employee.

The OPT program, which allows international students to stay and work in the US for a year after graduation, has tightened eligibility requirements, making it more challenging for international students to find suitable roles. Companies may be hesitant to hire international students for positions that do not require a high level of specialisation due to the additional costs and time involved in the visa process.

Furthermore, the current job market in the US is highly competitive, with a near-full employment landscape. Companies may be sceptical about hiring international students, especially when there is a large pool of qualified US citizens available for hire. This is further exacerbated by the presence of tech layoffs, which result in an even larger number of qualified US citizens seeking employment.

To increase their chances of employment in the US, international students may consider pursuing a PhD, especially in a specialised field where their expertise is highly sought-after. Additionally, larger companies with robust immigration support, such as FAANG, may be more open to hiring international students. However, it is important to note that each company has a limited number of H-1B visas available each year, and they may choose to allocate them to senior-level positions that are difficult to fill with local applicants.

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