US banks fly in overseas talent-Consult DB|Job search headhunt hk

2014101611:32

Requests for international skilled worker visas rose sharply at four of the five largest banks in the country over the past three years, according to Financial News analysis of data from the US Office of Foreign Labor Certification.

Between 2010 and 2013, demand for the visas, known as H-1B permits, increased by more than 10% at Bank of America Merrill Lynch, Goldman Sachs, JP Morgan and Citigroup. Morgan Stanley was the only one of the largest US banks where demand dropped.

Improved bank performance amid a broader US recovery as well as growing demand for cybersecurity and compliance expertise are stoking the rise, according to immigration lawyers and recruiters. Mindset

Brian Sullivan, chief executive of executive search firm CTPartners, said: “The banks realised that they have to increase their technology and big data capabilities. A lot of it is a compliance and protection mindset. There simply is not the supply of them and that’s why banks are going to get them elsewhere.”

Valentine Brown, a partner at law firm Duane Morris, added that the rise of automated trading in addition to compliance and cybersecurity burdens on banks had contributed to the rise in overseas recruitment. She said: “We’ve definitely seen an increase from the financial sector. Finance is much more intertwined with technology than ever before.”

This year, financial analyst roles were the eighth most frequently requested H-1B visa occupations, representing 2% of all requests, according to research from the American Institute for Economic Research. That is up from 10th place or about 1% of requests in 2013.

Bank of America submitted requests for 1,378 H-1B visas last year, up from 851 in 2010. Demand at JP Morgan rose 45% from 2010 to 2013, with the bank requesting 1,331 visas last year. Goldman Sachs requested 1,136 H-1B visas last year, a 19% increase from 2010 and Citi requested 829, up from 554 in 2010. The data also includes visa requests for H-1B1 visas, which are for workers from Chile and Singapore, and E-3 visas, which are for workers from Australia. Such requests cover a wide range of roles from analysts to developers, auditors, engineers, compliance officers and researchers.

H-1B visas are often used for new hires while more senior staff relocating to the US could use L-1 intercompany transfer visas. Those require staff to have worked for a given company for at least a year and be working in a managerial or executive role or one requiring specialised knowledge.

Experts say European banks typically request fewer H-1B visas because it is more common for them to use internal transfer visas to move staff from other offices globally.

Requests for the H-1B visas by the large US banks waned in 2009 after the financial crisis when the largest financial institutions participated in US Treasury Department’s Troubled Asset Relief Program, which placed harsher rules on banks looking to hire foreign workers.

Candidates

Because Tarp aimed to spur a US recovery, banks that accepted government funds had to show that they had first tried to fill roles with US candidates rather than foreign job seekers that needed H-1Bs. Those restrictions were lifted when banks exited the programme.

In addition to a rise in H-1B applications, banks have also made a push to hire from large outsourcing companies foreign workers that already have specialised visas, according to corporate immigration lawyers. H-1Bs are initially granted for up to three years and can then be extended.

The lawyers added many were moving away from historic outsourcing contracts with third-party firms because of issues such as security concerns.

Over the past two years, large banks have hired whole teams away from outsourcing firms, helping those candidates carry their existing visas from one firm in the US to another, experts say.

“It’s easier to rob Peter to pay Paul” than to rely on the lottery, one corporate immigration lawyer said. Outsourcing, IT consulting and large technology firms are typically among the largest requesters of visas. But those firms have faced harsh scrutiny since Infosys settled over US government allegations of visa fraud last year.

The most frequently requested H-1B visa occupations have historically been computer systems analysts and computer programmers. But this year, auditing and accounting roles have been increasingly sought, according to American Institute for Economic Research analysis. They were the fifth most frequently requested occupations in 2014, up from seventh in 2013.

Banks play the lottery to beat the cap

Financial firms face stiff competition from technology and outsourcing companies for H-1B visas and submit requests that will ultimately be entered into the same lottery.

The challenge across all industries is a government cap of just 65,000 on the number of visas issued each year. Only another 20,000 can be awarded to individuals with advanced degrees. The number of requests received by US Citizenship and Immigration Services this year has exceeded that cap with 172,500 H-1B applications being made.

Many companies, particularly well-resourced banks over-submit applications, knowing they will only secure 50% to 65% of the visas they request, immigration lawyers said. Bradley Veltkamp, a senior manager at accountancy firm BDO who specialises in expatriate tax issues, said: “You try to throw everyone through H-1B and see how many land. Through the rest of the year you try to make it work.”

Each year after applications are submitted, the agency randomly selects successful applicants, which means unsuccessful candidates can find themselves without jobs and firms without their requested workers.

The system is particularly challenging for graduate-level hires who are allowed to work in the US for one year after student visas expire and often rely on H-1B visas to remain at a given firm, according to recruiters.

Filing for H-1Bs from US authorities typically costs upwards of $2,000 with another $1,500 to $3,500 in legal fees per case, lawyers say. While H-1B holders account for a small percentage of workers at the largest banks – typically less than 2% of the total workforce, experts estimate – they are a key tool in hiring overseas talent.

The H-1B programme dates back to 1990 and the cap has been changed by lawmakers several times. US corporate lobbyists and trade bodies including the US Chamber of Commerce have long pushed for an increase to the cap, although no changes have been made to date. A Congress divided on the broader issue of immigration reform is viewed as unlikely to take action on the issue.

China, India and Europe are the main areas from which H-1B candidates hail.

One option for firms that are unsuccessful is to wait a year and re-apply or seek an L-1 transfer visa when they are senior enough. Others allow workers to travel to the US on temporary business visas until they have been with the firm long enough to qualify for an internal transfer.

Industry trade body the Securities Industry and Financial Markets Association has also pointed to flaws in the current system and said it supports changes, without outlining specific proposals.

Darrell West, vice president and director of governance studies at DC-based think tank The Brookings Institution, said the cap should be doubled as the current limit is making it difficult for firms to recruit the talent they need. “Clearly we’re in a situation where demand is exceeding the supply.”

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