With the rise of distributed work, it's hard not to consider the significance of guest worker programs like the H-1B visa, especially when foreign-born workers now account for 19.2 percent of the U.S. civilian labor force as of 2024.
For decades, American businesses have invested time and money into bringing highly skilled immigrant workers to work in the U.S., an effort that reflects the larger economic contributions of immigration, which is projected to boosts total nominal GDP by $8.9 trillion over the 2024–2034 period. However, visa quotas, and to a lesser effect, the long-running public debate over how businesses use the H-1B visa program and how it affects American workers has meant a shortage of visas for most applicants.
But no offices or a distributed team means no such visa issues.
This quick guide will walk you through how the H-1B visa works and options for hiring skilled foreign talent without having to worry about filing for the disputed nonimmigrant visa program.
First, let's explore a little bit about H-1B visas
So, what exactly are H-1B visas? They're temporary work permits that let U.S. companies hire highly skilled foreign workers for specialized roles, particularly in fields like technology, where foreign-born individuals made up 19% of STEM workers in 2021.
You've probably noticed how much the American tech industry relies on H-1B visas to fill critical roles.
What are H-1B Visas?
TL;DR: The H-1B is a temporary (nonimmigrant) visa that allows highly educated individuals who aren't U.S. residents or citizens to work in the country for six years.
It is an employer-driven visa, meaning employers petition the USCIS for visas that allow these workers to work in "specialty occupations" that need a bachelor's degree or the equivalent, though many are highly educated—in science and engineering occupations, 43% of doctoral degree holders were foreign born.
Specialty occupations are usually found in fields such as medicine, engineering, information technology, and science. The visa is valid for three years, and the employer can ask for a further extension up to a maximum of six years.
How do H-1B visas work?
Here's how the H-1B process actually works:
- Labor condition application: Companies must prove the H-1B worker will earn fair wages and won't negatively impact other workers
- Petition filing: Submit completed Form I-129 to USCIS
- Visa application: If approved, the worker applies for the actual visa at a U.S. consulate
- Entry process: Finally, they must be admitted by U.S. Customs and Border Protection
Which companies sponsor H-1B visas?
By March 2021, the USCIS had received a total of 308,613 H-1B visa petitions, well over the 87,500 annual quota. The U.S. Congress authorizes about 65,000 visas under the general cap and an additional 20,000 allocated to persons with a post-graduate degree from a U.S. college or university.
Some of the most prominent petitioners (also known as registrants) include:
- Amazon
- Microsoft
- Apple
- Infosys
- Tata Consultancy Services
- Accenture
- Deloitte and Touche
- IBM Corp
- HCL America
- Tech Mahindra Americas
- Goldman Sachs Co.
What Are The Main Problems With H-1B Visas?
For many companies, the H-1B visa process has become a significant operational hurdle. The challenges aren't just about paperwork-they impact your ability to hire the right people at the right time.
Key problems include:
- Uncertainty and delays: The visa lottery system means there's no guarantee your chosen candidate will be selected. This uncertainty can delay critical projects and leave teams understaffed.
- High costs: Legal fees, filing fees, and internal administrative time add up quickly, making H-1B sponsorship a costly investment with an unguaranteed outcome.
- Administrative burden: Managing the complex compliance requirements, deadlines, and documentation for each petition consumes valuable time for your HR and legal teams.
Cost Comparison: H-1B Sponsorship Vs Global Employment
Let's break down the real costs:
- H-1B sponsorship: Unpredictable expenses including legal fees, government filing costs, and potential dependent visa fees
- Global employment via EOR: Predictable monthly fee with no risk of failed applications
The EOR approach gives you consistent budgeting and faster onboarding without the lottery-style uncertainty.
Do H-1B visas even matter if you can hire employees in any country?
If there's a silver lining to the pandemic cloud, it's that the H-1B isn't necessary when accessing the global talent pool.
Companies can hire talent who don't live next door and not have to worry about compliance issues or the Russian roulette that is the H-1B visa program. These employees can stay in their home country, and the U.S. company can still hire and pay them compliantly. They just won't be working from within the U.S.
How can I hire full-time employees overseas without having to file for H-1B visas?
Here are some alternatives to basing employees stateside:
Hire a Professional Employer Organization (PEO)
Entering a co-employment relationship with a professional employer organization (PEO) is one way to get around the H-1B visa program.
A co-employment relationship allows the employer and PEO to share employee responsibilities contractually. Among other things, the PEO supports the client with:
- Payroll
- Tax filings
- Workers' compensation insurance
- State unemployment insurance
- Health insurance
- Health and wellness benefits
- Plus, keeping the business informed of any changes in the federal or state laws of the countries where your employees are domiciled
But that's not all. Partnering with a PEO means your people leaders have access to competent and experienced HR support. They're also able to benefit from an expert resource on any thorny compliance issues.
Use Employer of Record (EOR) payroll services
Unlike the co-employment arrangement where the PEO and employer share the employee's responsibilities and risks, using an employer of record (EOR)—also known as a payroll service provider—means the EOR is the legal employer of your distributed team members.
Under this arrangement, the employees sign their employment contracts with the EOR. The EOR is, therefore, responsible for all administrative tasks concerning the employee. But they don't concern themselves with the employees' day-to-day operations.
That is the responsibility of the client company.
The EOR handles similar payroll, insurance, and compliance responsibilities as a PEO. Think of it as your outsourced payroll and compliance unit. However, the EOR bears all legal liabilities.
Use a platform like Oyster
A global employment platform such as Oyster designed from the get-go to help people leaders hire,manage, and take care of a distributed workforce can also be a great option.
Oyster facilitates cross-border employment on behalf of your company but with the added benefit of being fully automated, self-serve, and free to start. In addition to compliant, local contracts, Oyster manages payroll and benefits for your team around the world, empowering you to truly care for your team members, regardless of their location.
The Future Of Global Talent Access
The debate over H-1B visas highlights a fundamental shift in how we work. The question is no longer just about bringing talent to your company's location-it's about meeting talent where they are. By embracing global employment, you can bypass immigration hurdles, reduce costs, and access a worldwide pool of skilled professionals.
Instead of navigating complex visa processes, you can focus on what matters most: building a great team. If you're ready to unlock a borderless talent strategy, you can start hiring globally with confidence.
About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, hire, pay, manage, develop and take care of a thriving global workforce. It lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world with reliable, compliant payroll, and great local benefits and perks.
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