The New Challenge for U.S. Employers 

The recent decision to introduce a $100,000 fee for new H-1B visa applications has left many U.S. businesses facing tough choices. For companies that rely on highly skilled foreign workers, this added cost can make sponsorship financially difficult, especially for small and mid-sized businesses where budgets are tighter. 

At the same time, the demand for global talent hasn’t gone away. Tech, healthcare, engineering, and finance sectors still need access to skilled specialists that aren’t always available locally. The challenge is clear: how can U.S. companies continue to hire the best people without taking on this massive new expense? 

The answer lies in using an Employer of Record (EOR). 

How EOR Offers a Cost-Effective Alternative 

An EOR allows your business to hire skilled workers abroad legally and compliantly, handling payroll, compliance, and local employment regulations. Instead of paying $100,000 upfront for sponsorship, companies can onboard talent through a more affordable EOR pricing model. 

This means you still get access to the expertise your business needs, but without shouldering unnecessary immigration costs. For many companies, this creates a more agile hiring model that can be scaled up or down as needed. 

Test Talent Before Sponsoring a Visa 

Hiring internationally always carries a level of uncertainty, skills on paper don’t always translate to performance in practice. With the new fee in place, the risk is even greater. 

An EOR allows you to test a potential hire for 6–12 months remotely before committing to the high cost of H-1B sponsorship. If the employee proves to be an excellent fit, you can then decide to proceed with visa sponsorship, knowing the investment will pay off. If not, you’ve avoided spending $100,000 on a candidate who wasn’t right for your company. 

Build Remote Teams with Global Reach 

Not every role requires a physical presence in the U.S. Many skilled positions such as software development, design, digital marketing, or finance can be done fully remotely. By hiring through an EOR, you can build remote teams abroad that integrate seamlessly with your U.S. operations. 

When in-person collaboration is needed, these employees can travel to the U.S. on short-term visas for meetings, training, or team-building events. This hybrid approach gives you the benefit of global expertise without the ongoing costs of visa sponsorship. 

Reduce Hiring Risk and Increase Flexibility 

Using an EOR gives your business more control over how and when to invest in international talent. Instead of being locked into costly, long-term visa commitments, you can: 

• Scale up quickly by hiring globally where the talent pool is strongest. 
• Reduce financial risk by avoiding upfront visa fees. 
• Transition only your most valuable employees to U.S. roles if and when it makes strategic sense. 

This flexibility is especially valuable for HR leaders who need to balance budget constraints with the demand for innovation and growth. 

Why Now Is the Time to Reevaluate Hiring Strategies 

The new H-1B fee represents more than just a financial challenge it’s a turning point in how companies think about global hiring. Businesses that adapt quickly will maintain access to top talent, while those that rely only on traditional visa sponsorship may find themselves struggling to compete. 

An Employer of Record provides a practical, cost-effective solution that helps U.S. companies navigate this new landscape. By leveraging EOR services, you can continue to build world-class teams, stay competitive, and protect your hiring budgets. 

Take the Next Step with Swapp Agency 

If your business is concerned about the new H-1B fee and looking for alternatives, Swapp Agency can help. Our Employer of Record solutions allow you to hire top talent abroad quickly, compliantly, and cost-effectively. 

Contact us today for details on pricing and to discuss how we can support your hiring strategy.