Crafting an Immigration Budget

Last Updated on December 17, 2024

The cost of immigration and mobility for organizations often tops the pain points for HR professionals surveyed in Envoy’s annual Immigration Trends Report. For HR and mobility teams, managing and forecasting immigration-related costs for their organization is a key function of their role.

When planning financially for immigration-related costs, HR and mobility teams must consider both predictable and unpredictable factors. Implementing a few immigration budget strategies can help them stay on track within their organization’s financial restraints and ensure a seamless immigration process for key foreign national employees and candidates.

Determining the Immigration Costs for an Organization

While there are a variety of costs that can be associated with an immigration and mobility program, three major buckets make up the bulk of a typical budget:

Government filing fees

Most temporary employer-sponsored visas – like the H-1B, L-1A/L-1B, TN, etc. – and green card applications require the company to pay a filing fee to U.S. Citizenship and Immigration Services (USCIS). These fees range from hundreds to thousands of dollars, and companies must pay them each time a new application is filed on behalf of a foreign national employee or candidate.

While foreign nationals can appropriately pay some of these fees, USCIS requires that the employer pay only some fees. It is important to check with immigration legal counsel before allowing a foreign national to pay any government filing fees.

There are mandatory fees, and then there are optional fees like premium processing, which allows companies to pay an additional fee to expedite the processing time for certain visa applications. Government filing fees are subject to periodic increases. Although government filing fees may be predictable, sudden changes in government policies – like the October 2020 Visa Bulletin – may lead to unanticipated costs for an organization, as it could lead to a sudden increase in immigration filings.

Legal fees

While some organizations opt to utilize internal legal counsel for immigration matters, most leverage the services of outside immigration legal counsel. In general, the cost structure for outside immigration legal counsel is divided into two types: flat fees and hourly billing.

Immigration legal counsel typically charges a flat fee for individual applications prepared and filed with the government. Hourly fees may be charged in immigration matters that require varying complexity, such as a response to a Request for Evidence (RFE), general research or an appeal.

Immigration and mobility perk package offerings

These perk packages are an important strategy for organizations to attract and retain skilled foreign talent, but each offering comes at a cost. Offerings may include providing temporary housing, covering relocation expenses, paying for dependent family members’ visa or green card applications, offering immediate green card sponsorship to the foreign national employee and more.

These three cost buckets are, for the most part, predictable within an annual budget cycle. Government filing fees and legal fees may increase slightly, but typically, an organization receives ample notice to plan for any increases. Organizations can also accurately predict the number of visa extension and green card applications they may file on behalf of their employees and the subsequent costs associated with filing those applications.

Other factors are not as easily predictable, such as changes in government policies or the number of RFEs an organization may receive each year. HR and mobility teams need to understand and consider these factors when crafting an immigration budget.

Predictable Cost Factors

Unpredictable Cost Factors

  • Government filing fees
  • Flat legal fees
  • Immigration & mobility perk packages
  • # of visa extension and green card cases filed
  • Hourly legal fees
  • # of RFEs
  • Growth of the organization (hiring more foreign national employees)
  • Sudden changes in government policies

 

Developing an Immigration Budget

Implementing a few strategies can, in part, help HR and mobility teams craft an accurate and resilient immigration budget.

The factors that impact an immigration budget will inevitably vary depending on the unique needs and capacities of an organization. Unpredictable factors may also impact an immigration budget, so organizations need to consider including a buffer for these variables within their budget.

HR and mobility teams can consider three broad strategies when crafting an immigration budget:

  1. Establish clear policies for sponsorship and immigration and mobility perks to keep immigration-related costs within budget.
  2. Coordinate with senior leadership to anticipate the growth of the organization. A hiring increase – particularly in STEM-related positions – will likely lead to the organization needing to sponsor more foreign national employees for temporary visas and potentially green cards, thus requiring an increase in the immigration and mobility budget.
  3. Leverage an immigration technology platform to provide periodic budget forecasts for your organization. For example, Envoy Global provides users with the ability to quickly and easily pull reports on their immigration-related costs and offers custom budget forecasting.