Recent industry surveys show a large majority of firms are planning or already using offshoring/nearshoring and other global mobility tactics to avoid the uncertainty and delay associated with U.S. visa processes.
The drivers are familiar: H-1B lottery unpredictability, slow political interview and 221(g) consent that push start dates, green-card backlog concerns, and rising cost pressure from proposed fee changes.
By Brian D. Lerner — Why employers shift talent, practical responses for HR and legal teams, and steps to reduce disruption.
What’s driving relocations — and what companies do
| Driver | Effect on hiring/retention | Common corporate responses |
|---|---|---|
| H-1B cap & lottery uncertainty | Key hires may not obtain timely U.S. authorization | Place employee in overseas subsidiary; sponsor local hires; broaden remote roles |
| Consular delays & 221(g) holds | Start-date slippage, travel risk | Relocate temporarily to Canada/UK/Mexico; delay U.S. start; use local contractors |
| Green card backlogs | Retention risk for long-term contributors | Offer retention bonuses, move career path to a regional office |
| Rising costs / fee uncertainty | Increased per-hire expense and unpredictability | Reassess cost models; nearshore centers; hire in market |
Practical checklist for HR, mobility & legal teams
- Map critical roles and the financial impact of delayed starts.
- Identify fallback countries (visa windows, tax, payroll, IP rules) — Canada, Mexico, and the U.K. often top shortlists.
- Run cost-risk scenarios: visa/legal fees, tax withholding, payroll setup, and relocation allowances.
- Consider alternative U.S. categories (L-1, O-1, TN) and premium processing where permitted.
- Update employment contracts to reflect remote/secondment terms and IP/confidentiality protections.
- Communicate transparently with employees: set clear timelines and contingency plans for travel or relocation.
Frequently asked questions
Are companies permanently leaving the U.S. market?
Mostly no — many firms treat relocation as a tactical or regional option to keep projects on schedule while continuing to hire in the U.S. long-term. Strategic decisions depend on policy shifts and business needs.
Which countries do companies favor for relocation?
Surveys and industry reports repeatedly list Canada, Mexico, the U.K., and EU countries as frequent destinations because of clearer, faster work-permit routes or geographic proximity.
What should startups do differently from big tech?
Startups with tight budgets may prefer nearshoring, contractor models, or remote hiring rather than costly global relocations; evaluate IP and labor law risks before relying on contractors.