Visa Sponsorship for International Hires - A Guide for Employers

Expanding your team internationally can be a game-changer. However, navigating visa sponsorship can feel overwhelming. Many employers don’t realize that sponsoring a visa is an option or that it can be a strategic move to attract top talent. If you're considering hiring globally, understanding how visa sponsorship works, when to use it, and what it entails is crucial.

Here is what you should know about visa sponsorship for international hires.

When should you consider visa sponsorship?

Visa sponsorship makes sense when you want to hire top talent but face work authorization restrictions. Sponsorship might be the best solution if a candidate has the skills your business needs but isn’t legally allowed to work in your country. This is especially true in industries with skill shortages, such as tech, healthcare, and engineering.

Consider sponsoring a remote employee who wants to relocate. Visa sponsorship could make that possible if the employee is moving for personal reasons or you'd like them closer to headquarters. Supporting an employee’s relocation can also boost retention and position your company as an employer that values its workforce.

How does the visa sponsorship process work?

The sponsorship process varies by country, but it generally involves securing a work permit for your employee. As an employer, you typically need to prove that a local worker couldn’t easily fill the job and meet government-mandated salary thresholds. Once approved, your company takes legal responsibility for the employee’s work authorization.

United States: The H-1B visa process

To sponsor an employee under the H-1B visa program, employers must file a petition with U.S. Citizenship and Immigration Services (USCIS). The process includes multiple steps:

• Labor Condition Application (LCA). Employers must submit an LCA to the Department of Labor, ensuring that hiring a foreign worker won’t negatively impact U.S. workers.

• H-1B petition filing. The employer files Form I-129 with USCIS once the LCA is approved.

• Lottery selection. Due to high demand, the H-1B visa program operates on a lottery system, selecting a limited number of applications annually.

• Approval and visa issuance. The employee can apply for an H-1B visa at a U.S. embassy or consulate if selected and approved.

Employers should also be aware that H-1B visas have strict wage requirements and validity periods. They typically last three years with the possibility of an extension.

United Kingdom: Skilled worker visa

Employers in the UK must secure a sponsorship license before hiring foreign talent. The process involves several key steps:

• Applying for a sponsor license. Businesses must demonstrate legitimacy and the ability to comply with immigration rules.

• Assigning a Certificate of Sponsorship (CoS). Once licensed, the employer assigns a CoS to the prospective employee.

• Visa application. The employee applies for the Skilled Worker visa using the CoS reference number.

• Compliance monitoring. Employers must track workers' status and report changes to the UK Home Office.

The UK government also sets minimum salary thresholds that employers must meet. These depend on the occupation and industry.

Canada: The LMIA process

For most work permits in Canada, employers must obtain a Labor Market Impact Assessment (LMIA). It proves that no qualified Canadian workers are available. The steps include:

• Advertising the position. Employers must advertise the role for a required period to prove a local labor shortage.

• Submitting the LMIA application. If no local candidates meet the requirements, the employer submits an LMIA application to Employment and Social Development Canada (ESDC).

• Approval and work permit application. Upon receiving a positive LMIA, the employee applies for a work permit.

• Visa processing and employment commencement. Once approved, the employee can move to Canada and begin working.

LMIA applications can take several weeks to process. Employers must meet strict wage and working condition requirements.

Australia: Temporary Skill Shortage (TSS) visa

To hire a foreign worker in Australia, businesses must use the Temporary Skill Shortage (TSS) visa program, which includes:

• Becoming a standard business sponsor. Employers must register as an approved sponsor.

• Nominating a position. The role must be on the approved skilled occupation list.

• Visa application by the employee. Once nominated, the employee applies for the visa.

• Compliance and ongoing sponsorship obligations. Employers must comply with Australian labor laws and report any visa status changes.

Employers should know different TSS visa streams, including short and medium-term options. These determine how long the employee can stay.

What are the costs of visa sponsorship?

Visa sponsorship comes with costs. These can include application fees, legal expenses, and compliance-related costs. Fees vary widely by country. For example, in the U.S., filing an H-1B visa petition can cost several thousand dollars, including government fees and legal services. In the UK, sponsorship licenses can range from a few hundred to several thousand pounds, depending on company size.

Beyond the financial aspect, visa sponsorship requires administrative effort. Employers must track visa expiration dates and comply with immigration laws. They sometimes provide additional benefits, like relocation assistance.

Industry-specific considerations for visa sponsorship

Certain industries have unique challenges when it comes to visa sponsorship. For example:

Tech industry

Many countries offer fast-track visas for highly skilled tech workers, such as the UK’s Global Talent Visa.

Healthcare sector

Additional licensing and certification requirements may apply, making the process more complex.

Construction and engineering

Employers must often prove that specific skills are in shortage before gaining approval.

Understanding industry-specific visa pathways can help businesses streamline the hiring process and attract top talent more efficiently.

Alternative work authorization options

Visa sponsorship isn’t always the only option. Employers should also explore:

Dependent visas

If an employee’s spouse already has a work visa, they may be eligible for work authorization without sponsorship.

Student work permits

Many countries allow international students to work part-time during their studies and transition to full work permits after graduation.

Digital nomad visas

Some countries offer visas for remote workers, allowing them to live in a country without requiring a traditional employer-sponsored visa.

These alternatives can be more cost-effective and less time-consuming than full visa sponsorship.

What if you don’t want to handle visa sponsorship yourself?

Using an Employer of Record (EOR) can be a smart alternative if the visa process sounds too complex. An EOR acts as the official employer on paper. They handle work permits, payroll, and compliance while your company focuses on daily operations. This is a great solution for hiring international talent without setting up a legal entity or dealing with immigration hurdles.

Visa sponsorship

Visa sponsorship can be a powerful tool for attracting and retaining global talent. However, it comes with responsibilities. Understanding the process, costs, and compliance requirements will help you make informed hiring decisions.

If handling visas yourself seems too complicated, working with an EOR can simplify the visa sponsorship process. It will still give you access to a diverse talent pool. Either way, supporting international hires can strengthen your workforce. It will also enhance your company’s reputation as a global employer.

FAQs

How long does the visa sponsorship process take? The timeline depends on the country and visa type. Some applications take a few weeks, while others, like the U.S. H-1B visa, involve a lottery and can take months.

Can a small business afford visa sponsorship? Yes, but costs vary. Small businesses may need to budget for government fees, legal support, and compliance costs. Using an EOR can be a cost-effective alternative.

What happens if an employee’s visa is denied? If a visa is denied, employers can appeal the decision. They can also explore alternative work authorization options, such as dependent visas, student work permits, or digital nomad visas.