74% of companies offered permanent residence to foreign nationals in 2020.
The COVID-19 pandemic had a severe impact on the various areas of businesses. One area that witnessed a serious blow, mainly due to the economic fallout that resulted from the pandemic, was hiring. While certain industries, such as healthcare and ecommerce, saw an uptick in hiring, other industries like travel, hospitality, and restaurants saw massive layoffs. The pandemic certainly altered the talent hiring landscape. However, according to an Alexander Mann Solutions reportOpens a new window last year, while the hiring activity took a hit, filling open positions and the quality of new hires were a priority for organizations.
Fast forward to 2021; it is found that amidst the changing environment of hiring, the need for global talent remains. Envoy recently released its 2021 Immigration Trends ReportOpens a new window that allows decision-makers to benchmark their organization’s mobility and immigration strategies.
The following are a few key findings from the report.
Learn more: Hiring in Times of COVID: What Recruiters Are Looking For?
1. Immigration of Talent Will Be Imperative Post-Pandemic
According to the study, the need for global talent persisted despite the change in the hiring environment. Visa sponsorship, too, continued in 2020 despite the pandemic-induced economic slowdown and travel restrictions. Further, as businesses look to fill open positions and foster innovation after the pandemic, the demand for international talent is expected to continue. 82% of businesses expect the headcount of foreign nationals to either grow or remain unaffected in 2021. About 59% of the companies expect it to increase explicitly. About 71% of the respondents feel that adopting remote work would either increase sponsorships or not affect the number of global talent.
2. Green Card Sponsorship Reached Peak Levels
A crucial part of acquiring and retaining foreign talent is green card sponsorship. It played a much more critical role in 2020. About 74% of the respondents said their company had offered permanent residence to a foreign national in 2020. This was the highest in the last six years. Further, more green cards acted to provide mental peace to foreign nationals amid increased economic uncertainty and immigration scrutiny.
It was further seen that in 2020, 81% of the businesses that sponsored green cards started the process before the first H-1B renewal.
3. Limited Number of Visas Was a Challenge for Employers
A significant pain point for businesses when it came to hiring global talent in 2020 was the closure of borders and embassies due to the pandemic. Another major pain point for businesses is the current U.S. immigration policy. Navigating the immigration policy has always been a challenge for employers, and this became aggravated last year. When Envoy asked the respondents to rank the pain points that became exacerbated under the previous administration, 54% indicated a lack of visa availability. According to the study, there is a consensus among businesses on the need for more visas.
Learn more: 6 Strategies for Hiring Tech Talent Remotely
4. Global Mobility Became an Important Point of Discussion
As businesses formulate new strategies to place talent unable to receive work authorization in the U.S. and prepare for outbound assignments, global mobility became a key point of discussion. Despite the concern that widespread adoption of remote work and collaborative tools may reduce outbound travel, many businesses felt that global mobility would continue to play a significant role.
68% of the respondents felt that the demand for outbound immigration work would increase post-pandemic. About 24% expect it to return to previous levels. According to the respondents, the key factors driving this increase are opening or expansion into new locations and placing talent unable to secure U.S. work authorization.
5. Companies Eye International Expansion Post-Pandemic
According to the study, many companies plan to expand on an international level once everything starts getting back to normal. This is not just from the point of opening new markets but also to place foreign nationals in locations alternative to the U.S. Canada remains the favorite destination for companies looking to expand and source or place international talent. About 57% of the companies are either planning to open an office in Canada or already have an office there. 55% of businesses consider Canada mainly as part of their talent acquisition strategy.
As support to their plan, the Canadian government announced its plan to welcome more than 400,000 permanent residents in 2021.
6. Businesses Need Experts To Handle Changing Mobility Landscape
Companies saw the following trends in 2020: the continued demand for foreign talent, growth in international travel, and a more distributed workforce than ever before. Further, the pandemic worsened the challenges involved in the immigration process. The year also saw 48 policy changes since the pandemic’s onset. A significant number of businesses cited a lack of predictability due to frequent policy changes, legal and government fees, and the process of preparing visa applications as the biggest pain points in the immigration program last year.
Hence, businesses have recognized the need for specialized partners in handling the rapidly changing and complicated mobility landscape.
Learn more: 3 Tips for Retaining Good Talent Amid the Pandemic
How the Demand for Foreign Talent Will Impact Hiring and Travel
Despite the pandemic impacting hiring and international travel, the demand for foreign talent in the U.S. continues to grow. As such, more businesses have actively taken steps to navigate the complex conditions created by the pandemic. They have also sought help from partners and tools to streamline the process of U.S. work authorization for foreign professionals. With a new administration, there are opportunities to reform the immigration policies that would benefit employers in a post-pandemic world.