Author: Marc Pavlopoulos, founder/CEO, Syndesus
The H-1B visa program, designed to bring highly skilled foreign workers to the US, has become increasingly complex and competitive. With annual visa caps and lengthy processing times, many companies struggle to secure H-1B visas for their talented employees. As a result, many companies are turning to Canada, a country with a strong tech talent pool and a more streamlined immigration process.
In this article, I will discuss the problems with the H-1B program and why Canada has become such an attractive option for corporate immigration. We will also discuss how companies can leverage the expertise of a Professional Employer Organization (PEO) to skip lengthy immigration processes, relocate their foreign staff to Canada, or hire remote employees in Canada, whether they have a Canadian office or not.
Let’s jump in.
The H-1B visa has become more challenging, here’s why
The H-1B visa program poses several challenges for businesses hiring foreign employees. Each year, there is a cap on the number of visas that can be issued, and the demand for H-1B visas typically exceeds the supply. Due to the limited number of visas available — currently capped at 85,000 — inevitably, some won’t be selected, and companies may feel out of options. A lottery system randomly selects individuals to determine who can apply for the visa, which adds uncertainty to the process.
On top of this, there is a significant green card backlog to contend with and long processing times, making it difficult for companies to hire critical talent on time. With the situation as it is, it’s no surprise that employers are exploring alternative solutions, and Canada is coming out top.
Canada is an attractive alternative for corporate immigration
Canada stands out in the race to attract global tech talent, offering many advantages for foreign companies seeking to hire or retain talent. This includes a lower cost of doing business overall, possible tax breaks, and a streamlined immigration process that is more predictable than the US system. Canada’s world-class immigration program, the Global Talent Stream (GTS) — part of the Global Skills Strategy — is a great option for Canadian and foreign businesses who want to hire foreign talent. Employers can speed up the process of hiring foreign workers to fill specialized jobs in a matter of weeks.
GTS is currently one of the world’s fastest immigration pathways for skilled workers and offers a fast-track pathway to residency in Canada. Employees can obtain a Canadian work visa, relocate, and quickly start working; furthermore, Canadian permanent residence can be possible in one to two years, and citizenship can be acquired in around five years. Once the employee has permanent residence status, they can get most social benefits Canadian citizens receive, a more affordable cost of living, accessible healthcare, and markedly more reasonably priced education.
It’s no surprise that Canada is a desirable option for immigrants, especially when compared to the uncertainty of life on a work visa in the US. Employees can even move back to the US in the future, with new experience gained while working in Canada — opening up new immigration pathways to the US. If the employee becomes a Canadian citizen, business travel becomes significantly easier as Canadian citizens don’t require visa stamps from a consulate abroad. It would also benefit them when reapplying for a Green Card (US permanent residency) because they wouldn't have to wait as long as when they were applying from countries such as India or China, which have a greater backlog.
Should you open a Canadian office?
Not necessarily, but for companies that are looking for a more permanent presence in Canada, opening an office can provide several advantages. It can allow the company to build a closer relationship with Canadian employees and customers and facilitate hiring additional Canadian talent. Canadian offices owned by US-based companies are more than legal entities on foreign soil; they can function as strategic hubs for global talent acquisition.
When opening an office in Canada, companies can either handle all employment-related matters themselves or engage the services of a Canadian PEO. One of the simplest solutions for US companies looking to scale up and navigate the complexities of managing Canadian operations is to work with a PEO or an Employer of Record (EOR) that understands Canadian tax laws.
PEOs and EORs streamline hiring in Canada
These organizations provide a simple way for US companies to hire tech talent in Canada. They act as the legal employer for the worker, handling all aspects of payroll, taxes, and HR compliance. This can significantly reduce the administrative burden for foreign companies, allowing them to focus on their core business activities. By working with a third-party employment service, companies can hire abroad even if they don’t have an office in that country, offering an easier way for companies to take advantage of a global talent pool.
Working with a Canadian PEO is a viable option for businesses that are not ready to open a physical office in Canada. The PEO acts as a co-employer and handles all employment-related matters for the worker, including onboarding, payroll, benefits, and termination. This allows the US company to maintain control of the worker's work and direction while the PEO takes care of the administrative details.
An EOR acts as an employee’s legal employer and provides all the HR, legal, tax, payroll, and immigration services needed for remote hiring to enable companies to hire workers remotely in a country where they don’t have an office. So, US employers who want to hire a remote tech worker in Canada don’t need expertise in Canadian immigration or employment law, nor do they need to hire attorneys, accountants, and other professionals.
In both cases, the foreign company hires and retains key talent in Canada, avoiding the difficult H-1B visa process altogether, and has easy access to that employee when needed. Employees can continue working for their employer and retain a US salary while reaping the benefits of life in Canada. US companies can get value both in the short term, given the quick timeline of the GTS compared to the H-1B process, and in the long term, given Canada's quick route to permanent residency and eventual citizenship.
The GTS offers creative and forward-thinking ways to keep skilled and much-needed employees. Don’t sleep on Canada.
Syndesus helps companies leverage Canada’s tech talent and favorable immigration laws with turnkey PEO and EOR services. Reach out to us to learn more.
Marc Pavlopoulos, founder/CEO Syndesus