Everything You Need to Know About Hiring Foreign Nationals

Who is considered a foreign national?

A foreign national is an individual who is not a citizen (referring to their legal status) or national (referring to their place of birth) of a specific country. In terms of employment in the United States, a foreign national (also known as a foreign employee or foreign worker) is an employee or independent contractor who works in the United States but is not a naturalized U.S. citizen.

Pros of hiring foreign national employees

Hiring a foreign national employee can significantly benefit your business while enhancing the worker’s circumstances and career. Every business should strive to improve diversity and inclusion and hiring a foreign employee is one way to get there.

Here are some of the top advantages of hiring foreign nationals

Access to skilled labor

Sometimes, the best employee for a specific job doesn’t live in your town, state or country. Widening your recruitment strategy to include a global talent pool increases the likelihood of finding highly skilled employees you wouldn’t have access to otherwise.

Leon Rodriguez, a partner at Seyfarth Shaw, LLP and former director of U.S. Citizenship and Immigration Services in the Barack Obama administration, emphasized the importance of hiring foreign nationals to address labor shortages. “The key pro is often those are individuals who are bringing either skills or just a willingness to work in areas where there are not U.S. workers readily available for those jobs,” Rodriguez explained.

Labor cost savings

Hiring foreign workers may save you money, depending on the role you’re hiring for and the position’s pay range. The U.S. has a desirable job market for many foreign nationals, giving employers some flexibility to offer competitive but lower wages.

“The demand, with the high supply of workers, allows the employer to hire employees [who] are willing to work for lower [pay],” explained Marianne Curtis, employment litigation attorney and partner at Berger Singerman. “In some cases, this may be the foreign worker who is looking for an opportunity to break into the United States employment market.”

While cost savings can be an advantage, employers cannot hire foreign workers solely because they are less expensive. To obtain the required work certification, you must demonstrate that no qualified U.S. workers are available to perform the job. (More on certification requirements later.)

“The certification requires the employer to confirm that there are insufficient U.S. workers to perform the work at wages that meet or exceed the prevailing wage for the area of employment,” Curtis noted.

Improved company diversity

Foreign national employees bring unique skill sets and perspectives to the U.S. workplace through their culture, work experience and personal backgrounds. This diversity can enrich your company culture and drive team innovation.

“Diverse teams have more voices represented and they bring more innovation because of the diversity of opinions,” explained Anastasia Pshegodskaya, director of talent acquisition at Remote, noting that diverse teams, including teams with geodiversity, can have a significant impact on business outcomes.

Expansion opportunities and connections

Hiring a worker from another country can be highly beneficial if you plan to expand into their region. They can provide firsthand knowledge about their country, educate you on international business etiquette and provide insights on current market gaps. They may even have business connections that prove useful in your expansion.

Pshegodskaya highlighted the importance of having employees who “speak the language,” both literally and figuratively, when entering foreign markets. “If you want to sell your product, you need to make sure that you understand your customers’ behaviors, right?” Pshegodskaya said. “And there is no way you can do that if you’re just coming from one perspective.” 

Intrinsic value to employers

Curtis noted that hiring a foreign national can bring benefits beyond business — it can be personally rewarding. Employers can provide a valuable opportunity to someone seeking employment in the U.S. — often a profoundly enriching experience. The workplace gains fresh perspectives while meaningful connections across cultures are made.

Cons of hiring foreign national employees

Although hiring foreign workers can benefit you and your company, some potential drawbacks exist. Still, you can mitigate most of these with the proper preparation.

Here are some of the biggest potential disadvantages of hiring foreign nationals.

Language barriers

If you and your foreign employees speak different languages, you’ll need a detailed plan to help them succeed in their roles. Consider hiring bilingual mentors or implementing training programs to bridge communication gaps. 

Related article: Unspoken Signals: Common Body Language Mistakes to Avoid in the Workplace

Legal risks

Hiring a foreign national is an intensive process that can pose human resources compliance challenges. As a result, there are legal risks associated with hiring foreign workers if you aren’t careful. You should speak with an experienced immigration attorney to ensure your recruitment and hiring processes comply with all applicable immigration laws and regulations.

“I think it is very well advised to have the support of counsel,” Rodriguez cautioned. The legal code governing employment-based immigration is particularly complicated, so professional guidance is essential. 

Pushback from local communities

Some communities might oppose businesses hiring foreign workers because they want to retain local jobs for local talent. This concern can be especially relevant if you operate in a small community with limited job opportunities.

“There’s a certain amount of regulatory risk that goes with hiring such people, both in terms of complying with visa requirements and also avoiding allegations of discrimination against U.S. workers,” Rodriguez warned. “Both of which can have problematic consequences for a company either in terms of fines or in terms of brand damage.” 

Misaligned motivation

Curtis noted that some foreign workers see their employment in the U.S. as an individual stepping stone, which can cause a lack of interest in and dedication to the company’s future and growth.

Time and money

Hiring a foreign national typically requires more time and money upfront compared to hiring a domestic employee. The application process for certifications and visas can be lengthy, often causing delays.

“The process can be cumbersome, so patience, commitment to the ultimate outcome and managing expectations are critical,” Curtis cautioned.

How to hire foreign workers

If you are considering hiring a foreign worker, follow these four steps.

1. Acquire certifications.

Start by applying for certification from the U.S. Department of Labor (DOL). This process requires you to demonstrate a legitimate need for a foreign worker, prove you can offer appropriate compensation and meet all criteria under the applicable foreign labor certification program.

2. Recruit and interview candidates.

The hiring process for foreign workers will look slightly different from the typical hiring process for U.S. citizens. Keep this in mind as you post on job boards, review resumes and conduct interviews with candidates. The overall process can also take much longer. The candidate will need to be approved for their visa before you can officially hire them and completing this paperwork could take a while (see below).

3. Acquire work visas.

Your foreign national employee will need a work visa from U.S. Citizenship and Immigration Services before they can legally work in the United States. You can verify their work authorization with Form I-9 if they already have one. If they don’t, you may have to sponsor their work visa, which will take a lot more time and effort.

4. Comply with tax laws.

Address all tax laws that apply to your company and the foreign worker. For example, foreign workers in the U.S. will need a Social Security number and be subject to payroll taxes. If you’re unclear about your responsibilities when it comes to tax filing, consider hiring an accountant to advise you.

Erin Donaghue contributed to this article. Some source interviews were conducted for a previous version of this article.