February 12, 2025

The Power of H-1B: Unleashing Employee Retention and Innovation in a Diverse Workforce

H1-B season will shortly be upon us. While we await any potential changes with the new administration, it’s worth a reminder that the central benefits of an H-1B, or indeed any company-sponsored immigration status, remain the same. It is a fantastic tool for maintaining or increasing employee retention and loyalty.

With an e-filing option available this April, the process of submitting the H-1B has taken an important step towards easier and quicker facilitation. Open to those who are successful in the lottery – a feat in itself – e-filing allows for online submission, payment and subsequent tracking. This will certainly prove to be an attractive feature in the quest to attract and retain talent.

At a basic level, any company-sponsored status means that the individual’s authorisations are dependent on their work for that organisation. Should that work end for whatever reason, the status would also end. Historically seen by cynics as a mechanism to tie individuals to an employer, they are now largely viewed as a fairly robust way to ensure some return on immigration spend. Amid ever-increasing immigration costs, any way to improve return is celebrated.

Employee retention rates will always vary across industries, organizations, positions and economic cycles. In periods of low retention, it’s worth exploring any available tools to mitigate escalating costs, counteract the disruption to business and position for the complexities that ever-changing immigration systems throw at us. 

The securing of company-sponsored immigration status generally increases retention. At the very least, the daunting practicalities of having to pursue alternative immigration clearance tends to prevent employees from being tempted to search elsewhere without good and adequately substantiated reasons. Sponsored employees could arguably make your workforce more secure. 

Green cards are often thought as a recruitment or talent attraction tool. But it’s also worth considering their value to employee retention. We’re in an environment where a growing number of employees seeking their next career opportunities place an equal, if not even higher importance, on alignment of values and personal recognition than on the more typical or tangible benefits. Seeing that an organisation values an individual enough to navigate the often lengthy and burdensome green card process is a significant incentive to an employee that could be tempted elsewhere. 

Foreign-born employees currently make up 18.6% of the workforce in the United States, per the Bureau of Labor Statistics News Release. Studies indicate that in general, foreign-born employees tend to demonstrate higher retention rates compared to native-born US employees. It’s worth considering that the reasons for this could go beyond the mere holding of company-sponsored status. Those who have endured the challenges of establishing life in a new country and invested in learning how to navigate the business, political and social systems may not be as quick or eager to explore new opportunities as those who have not had the same challenges. Indeed, individuals tend to be more loyal to employers who provide them with opportunities, and a sense of belonging, purpose and security in their work.

As we head into the next H1-B registration season, it’s worth reiterating that immigration is a powerful tool for workforce attraction, retention and innovation. Apart from granting the mechanism to actually employ foreign talent, a sound immigration strategy facilitates the curation of a diverse workforce. We all bring elements of our cultures, customs and behaviours into our work. That may very well at times bring its own set of challenges, but it has also been proven to foster creativity and innovation, with different perspectives testing previously accepted norms. 

It is very fair to say that navigating immigration systems in 2025 will be challenging in many parts of the world. However, the benefits of employee attraction, retention, creativity and innovation should be worth the patience and resilience it takes to stay the course.

 

 
Leanne Cottrell

Leanne Cottrell

As Head of Immigration with Sterling Lexicon, Leanne leads a team of specialists who are responsible for ensuring the entire immigration process is smooth and stress-free for clients, assignees and their accompanying family members. She brings over fifteen years of experience in strategic immigration management, planning and consultation to her role, and has cultivated invaluable knowledge and experience in processing countless global migration applications. As a trusted partner, she consults with clients on everything from policy considerations and cost or efficiency improvements, to the impact of opening offices in new locations. Leanne is a frequent presenter and author on global immigration topics and trends, and currently serves as a member of the Worldwide ERC (WERC) Immigration Advisory Council.

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