US employers rethink H-1B talent strategy as Trump policies tighten: Envoy Global

US employers are revamping their approach to hiring and retaining foreign professionals as sweeping immigration policy changes under the Trump administration make the H-1B programme more expensive and less predictable, according to Envoy Global's U.S. Corporate Immigration Trends 2026 Report, as reported by Lubna Kably in The Times of India.

Based on a survey of 519 HR and global mobility professionals, the report found that employers are moving away from treating H-1B sponsorship as a standalone process. Instead, they are adopting long-term immigration strategies that begin with student visas, progress to H-1B sponsorship and lead to earlier green card applications.

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The report noted that recent policy changes under the Trump administration include a $100,000 H-1B consular processing fee, a wage-weighted H-1B cap selection system, and a proposal to significantly increase prevailing wage levels.

"A little over six months into 2026, the immigration landscape already looks markedly different from what employers anticipated a year ago," said Jason Brennan, CEO of Envoy Global.

H-1B demand remains strong

Despite the policy changes, demand for H-1B talent remains robust. Nearly six in 10 employers submitted more H-1B registrations than the previous year, even as the US Citizenship and Immigration Services accepted fewer applications overall, indicating continued competition for skilled foreign workers.

However, Sherry Neal, partner at Envoy Global, said higher registration volumes should not be mistaken for a hiring surge.

"While demand remains strong, the volume in H-1B registrations does not necessarily reflect a proportional increase in new hires," Neal said. "In many cases, employers are re-registering candidates who were not selected in previous H-1B lotteries."

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She explained that companies employing workers on Optional Practical Training (OPT) and STEM OPT extensions often register the same employees each year until they are selected, alongside newly hired candidates.

"As a result, higher registration volumes frequently reflect a build-up effect, rather than a pure increase in sponsorship," she said.

The report emphasised that the H-1B programme continues to be the primary route for skilled immigration.

"The H-1B remains the most common visa category because it is the only broadly applicable pathway that spans all industries, company structure and size and worker nationalities, making it the default option for professional talent hiring," Neal said.

She added that while employers are exploring alternative visa categories, these are generally constrained by nationality, employer structure or specialised eligibility requirements, and therefore complement rather than replace the H-1B programme.

Greater focus on student visa pipeline

Amid continued uncertainty around the H-1B lottery, employers are strengthening their reliance on student visa pathways.

The report found that 93% of employers support foreign national employees through F-1 work authorisation programmes, including OPT, STEM OPT and Curricular Practical Training (CPT). Of these, 39% support both OPT and STEM OPT filings, 35% support only OPT filings, while 18% support only STEM OPT filings.

"The widespread majority of employers supporting F-1 OPT and STEM OPT filings reflects the critical role student visa pathways play in addressing talent gaps in the U.S. workforce, particularly in technical and specialized roles," said Anne Walsh, partner at Envoy Global.

She added that STEM OPT gives employers additional time to plan H-1B sponsorship and that, as competition for H-1B visas intensifies, employers increasingly view F-1 pathways as part of a multi-year immigration strategy rather than simply an entry route for graduates.

Premium processing sees wider use

The report said rising immigration costs are reshaping employer behaviour, with government filing fees accounting for the largest share of immigration programme budgets, particularly for smaller employers.

Even so, employers continue to rely heavily on premium processing to bring greater certainty to the H-1B process. According to the survey, 83% of employers use premium processing across nearly all major H-1B petition categories.

It is most commonly used for H-1B extensions and renewals (78%), followed by initial H-1B cap petitions (77%) and H-1B transfers (70%). Nearly 46% also use premium processing for H-1B amendments.

Green card sponsorship accelerated

The report also highlighted a shift in permanent residency planning, with three out of four employers now initiating green card sponsorship within the first three months of employment, compared with much longer timelines a decade ago.

According to the report, employers are accelerating sponsorship because of lengthy PERM processing timelines, slower green card adjudications and increasing uncertainty around temporary work visas.

"Two main factors likely drive employers' decision to speed up green card sponsorship, long processing times and uncertainty about non-immigrant visas," said Rita Ambrosetti, partner at Envoy Global.

The report added that rising H-1B costs, including the $100,000 fee, wage-based registration system and increased scrutiny of petitions, are prompting employers to pursue green cards earlier to provide workers with more predictable work authorisation and reduce immigration-related risk.

(With TOI inputs)