The global war for talent already had been red-hot and then 2025 dropped seismic changes in U.S. immigration policy onto the table. This made onshore hiring more expensive and riskier for numerous startups with a single stroke. With announced $100,000-per-H-1B fee headlines and successive clarifications flooding business news streams, startups must retool how they get access to the talent they need without being sidetracked by expense or drag.
The future of jobs report by We Forum shows macro trends in global skill shortages and the rise of distributed workforces. EORs have come to the rescue with a viable, speedy, and compliant answer that can protect plans for expansion and keep product roadmaps on track.
What changed and why it matters
In September 2025, leading media reported on pending actions that would increase the price of H-1B sponsorship substantially, with broad consequences for firms that rely on visa sponsorship of workers. Reuters and other news outlets reported on the new fee proposals and the anticipated industry effect, particularly on Indian IT exports and global staffing models.
Government explanations soon followed, but skepticism remains. Even with exemptions and case-by-case arrangements, the headline reads that sponsoring onshore talent has become much more expensive now, especially for IT professionals. This makes Employer of Record services attractive and strategic.
Let’s see why an EOR for startups can be worth it with the new H1B Visa Regulations
- Speed to hire – Startups don’t have months for immigration approvals or capital for establishing entities outside their home country. EORs allow them to hire within weeks or even days by being the employing country’s legal employer. Platform providers like Startup Talent report that EORs reduce time-to-hire for cross-border roles.
- Similar cost vs. uncertain visa cost – The new H-1B fees and associated legal/file fees create multi-year employer financial risk. EORs provide the option of hiring a similar, transparent cost (monthly fee + local compensation) rather than a possible six- or seven-figure gamble.
- Compliance and local knowledge – Startups don’t have to be experts in every nation’s payroll, tax, and employment legislation. EORs take on legal liability for local employment compliance, reducing regulatory risk and administrative burden on a small HR staff.
- Access to talent and resilience – While policy complicates onshore visas, several companies are embracing remote-first, offshore, or hybrid setups. EORs allow startups to access regional pools of talent with less friction than entity creation, making talent acquisition immune to policy changes. Reuters coverage suggests industry preference for offshoring and global capability centers as a direct result of rising U.S. visa costs.
A genuine 7-step startup plan (do this week)
Pair roles by “need to be onsite” vs “remote-friendly.”
Pinpoint the jobs that truly require employees to be onsite in a specific country (e.g., customer-facing roles tied to specific offices) and those that can be executed remotely. Use EOR first for remote-friendly tech and product roles.
- In-depth cost comparison. Modeling cost of employment: (A) sponsoring on H-1B (approximate filing + legal + relocation + ongoing compliance) and (B) EOR + local comp. Take conservative visa timelines and surprise costs into account.
- Select EOR providers and conduct a trial hire. Shortlist 2–3 well-established EORs (Globalization Partners, Deel, Safeguard Global, Multiplier, etc.). Pilot a single role hire to test onboarding, payroll timing, benefits set-up, and reporting. Document SLAs and data security provisions.
- Institute a dual track hiring policy (when applicable). For A-player candidates who are willing to relocate, offer immediate employment through an EOR (so work commences immediately) while investigating visa sponsorship in parallel if relocation is strategically meaningful.
- Localize pay and benefits. Work with the EOR to create locally competitive bundles (statutory benefits, health, paid holidays). Local bundles reduce turnover and build employer reputation among target segments.
- Culturally embedded remote workers. Avoid making EOR-hired employee’s second-class citizens. Invest in onboarding, mentorship, time-zone-cross standups, shared OKRs, and symmetrical career paths to ensure high retention.
- Measure and optimize. Track leading metrics: time-to-hire, cost-per-hire, ramp time, performance output, and retention. Use them to maximize what roles remain EOR-based and what to sponsor onshore.
- Avoid traps. Don’t presume all EORs are equal. Fees, country reach, data privacy protections, and legal liability vary. Negotiate SLAs and exit provisions.
Excluding immigration guidance for relocation of cases. If you plan to relocate someone onshore, consult immigration attorneys beforehand. EORs are additive, not a legal substitute for visa sponsorship if relocation is required.
Conclusion
EORs give startups speed, compliance, and cost certainty. This enables founders to focus on product-market fit, not paperwork. With trusted EOR providers and a clear internal playbook, startups can keep hiring global talent, without committing their runway to H1 B visa fees and regulatory uncertainty.
