Successful companies constantly look to recruit the brightest
and best employees and there will be situations where a preferred
candidate requires immigration sponsorship. To compete for the
best, companies need to understand the necessary steps to become a
sponsor and to then develop an understanding of the ongoing
compliance obligations that exist as a licensed sponsor. There is
then finally the importance of understanding the immigration system
framework, how best to utilise that framework and how to mitigate
any risks and costs.

Being ready to sponsor – obtaining a licence

Obtaining a sponsor licence can take several weeks in terms of
collating the relevant supporting documents, filing the
application, and awaiting the Home Office to approve the
application. This delay could prove critical in a candidate’s
decision to join an employer. Advantageously the Home Office no
longer requires a specific candidate to be identified to apply for
a licence, so a company can effectively apply for a licence at any
time in preparation for sponsorship, in essence jumping ahead of
the game so there is not that awkward conversation with a candidate
about the delay due to becoming a sponsor. The statistics
demonstrate the increasing engagement companies have with the
immigration system, with currently over 69500 organisations
registered as licensed sponsors for work and study, and around 7000
licences granted alone between April and June 2023, which was 40%
more than the same period for 2022. You can find out more about the
sponsor licence process here.

Maintaining compliance and mitigating risks

The Home Office places the burden on sponsors not just to
monitor their sponsored workers’ visa status and ensure a
continuing right to work, but to monitor any changes in employment
such as work location, job title and role changes (and significant
changes can trigger a new visa application), and long term leave
and absences. It is therefore important to have robust HR systems
in place to monitor and report on these. You may wish to have
periodic reviews of your HR processes and have mock audits
undertaken to locate any weaknesses and gaps in your systems. You
can read more on compliance obligations here and what needs to be done to remain
compliant in the eyes of the Home Office.

Utilising the immigration framework effectively

The UK has one of the more efficient immigration systems but it
is not necessarily the cheapest, however costs can be mitigated
with the correct strategy. Companies should understand the correct
visa routes to use in certain scenarios, such as the choice between
the Skilled Worker visa and the Global Mobility visa routes. It can
be a costly mistake to place an individual on the wrong route and
then to switch them. A company should have an understanding of how
to mitigate visa costs, for example minimising the duration to
under 6 months for an exemption from the surcharges where practical
or understanding when the skills surcharge does not apply e.g. EU
nationals transferring from an EU company under the Global Mobility
route. It is also beneficial to have an understanding of
non-company sponsored work routes and when these would be
advantageous to utilise over the work sponsored system as
non-company sponsored visas can have considerable cost advantages.
Certain sectors have specific visa categories beneficial to them
such as the creative sector and the Temporary Creative visa. It is
therefore crucial sponsors develop a tailored immigration strategy
suited to their needs to ensure use of the UK immigration system
effectively.

Developing a plan

Companies should evaluate their recruitment needs and how they
wish to interact with the immigration system. A starting example
would be assessing labour shortages in their field to evaluate
whether obtaining a sponsor licence could be a worthwhile
endeavour. Speaking to peers and similarly situated companies in
your industry should also provide insight into the value of holding
a licence for your company. Certain sectors heavily use the system
such as the tech and financial services areas, while other sectors,
such as construction, are only just starting to interact with the
system. Once a company determines it has a need for a licence, a
plan can then be developed to obtain a licence and put processes in
place to be a compliant sponsor.

For those companies already holding a licence it is worth asking
whether you are getting maximum value and efficiency from the
system. Have you reviewed internal procedures and systems for
compliance? Are you aware of all visa routes? Are you aware of cost
mitigation strategies? Have you spoken with colleagues in the
industry about how they use their sponsor licence? These kind of
questions can help enhance understanding and utility of the UK
immigration points based system.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.