04:05 AMERICAS
This raises a fundamental question: is the policy designed to promote a ‘pay-to-play’ model that advantages incumbents while limiting new entrants? Whether intentional or not, the outcome is a narrowing of opportunity for smaller players in the global economy. Shifting Demand for U.S. Executives One immediate consequence is likely to be increased demand for senior U.S.-based executives. If global companies cannot justify relocating their own leadership teams, they may instead hire American nationals to run U.S. operations. This could reshape recruitment dynamics. International firms may bring U.S. hires overseas for training and immersion in the company culture before redeploying them back home. This approach minimises immigration costs while strengthening U.S. leadership pipelines. For HR and payroll professionals, it means greater emphasis on global mobility programs, relocation policies, and tax equalisation strategies. The Rise of Remote Work and Offshoring Another foreseeable outcome
created a stark divide between the multinational giants that can afford the additional costs and the small to mid-sized enterprises (SMEs) for whom this fee represents a prohibitive barrier. A Barrier for Small and Medium Enterprises For global businesses exploring U.S. expansion, the H-1B route has often been a critical bridge. It allows founders, senior managers, or technical specialists from overseas to relocate and establish operations. The new fee fundamentally alters the calculation. While a large corporation like Amazon or Meta may view $100,000 as a marginal expense in exchange for critical skills, the same cost could deter a European or Asian scale-up from sending its founder or a senior executive to lead a U.S. market entry.
This raises a fundamental question: is the policy designed to promote a ‘pay-to-play’ model that advantages incumbents while limiting new entrants?
34 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 16
Made with FlippingBook - Share PDF online