US Immigration Policy- H-1B Visa offers Advantages to Large Companies

August 06, 2019
Presently H1-B visas are frequently used by established companies and less by startups because the former, get the advantage in dealing with time and cost factors.

US Immigration Policy- H-1B Visa offers Advantages to Large Companies

US Immigration and the status of start ups

The present visa policies followed by U.S. make it hard for startups in hiring overseas tech workers, as per a study of researchers of Cornell University and UC - San Diego.

This study focused the hiring pattern of overseas workers in science and engineering subjects in the American universities. The workers apply and also get offers from startups at the similar rate of U.S. citizens. But the possibility of hiring is only half. This disparity reflects that when access to overseas talent is denied startups miss out on a competitive edge. Great innovations from Google and Apple actually happen when they buy startups, as per an author. 

US Immigration gives an edge to large companies

The employment scenario does not deal with preference of foreign workers to get a job but large and established companies, get the advantage, over the budding startups, to sponsor overseas employees for various visas.

Startups have limited resources and less managerial attention. This factor is challenging for startups in technology that seek top specialized PhDs, because the potential employees are scarce and the necessary expertise is difficult to find.

The cost of sponsoring a visa is $5,000 - $10,000 and involves a delay of many months that is a test for startups. The fledgling companies find this process very intimidating.

The challenges in US Immigration

Presently H-1B visas are scrutinized heavily by the US administration, requiring companies to give additional information and face more paperwork.

The study is based on replies of a survey involving 2,324 persons with a doctorate in STEM fields.

Most of the H-1B visas are allotted to information technology businesses, and large companies pick up visas for the projects. Presently the access is undergoing an expansion but these visas will be out of reach for the startups on account of time and expenses to get them.

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