How Employers Can Benefit From A US State Dept. J-1 EVP Internship Program By A. H. Lostocco
CHI Publishing
September 26, 2008
Over the last 10 years I have been asked on more then one occasion "Why would I consider using international interns or trainees in my business, considering the hassle involved in getting them here from their home country?" On the surface it seems like a fairly reasonable question that makes sense until you start to look at the advantages. In life we all know that sometimes you have to give in order to get and this is one of those cases. So lets exam the benefits and what you have to give and weigh it against what you will get in return.
Benefit #1 Cost Effective
For the most part the wages you pay for a trainee are those that you would pay for your entry-level positions. In most cases the level of education far exceeds the wage rate. The intern you are receiving for this wage has either a college and masters degree and/or has up to 5 years experience. What the international trainee is looking for is US experience and is willing to trade a higher wage for the opportunity to gain that experience.
Further an international trainee is willing to participate in your program for 12 to 18 months, whereas a US intern will only participate for 3 months during the summer months, you can quickly see the benefits you will receive in increased productivity due to the longer duration of stay.
Another cost advantage is that participates in a US State Department Exchange Visitor Program are required to purchase health insurance prior to their arrival in the US and to maintain it the whole time they are here. Therefore if your company has health insurance for its employees you will not be required to offer it to your international trainees. These trainees are also exempt for FICA and FUTA insurance.
So when you add this all up you have a sizable savings you are accruing as you enter into this relationship.
Benefit #2 Well Educated and Motivated to Learn.
International trainees 99% of the time have a college degree and in many cases will have a master´s degree also. So here you have a well-educated international student or young professional doing entry level work as s/he gains experience and becomes accustomed to your office culture. From a motivation standpoint this individual will have spent $3000 to $5000 for the opportunity to work in your company. I would say that that is ample incentive and motivation to work hard, do a good job and learn as much as possible. You will find international trainees extremely eager to learn and advance to higher positions where they can gain even more experience.
Benefit #3 Fill Entry Level Positions & Reduce Turnover
For most companies there always seems to be about 10% of the staff that are turning over and its always the same positions. With the use of an internship program not only can you reduce the turnover but you can also control it. You ask how? Simple, for many of those positions you can use international interns. Most of those turnover positions have learning requirements and opportunities attached to them; education and experience that someone would be thankful for. In many cases it´s a matter of how you structure the position. Through restructuring and filling it with a trainee who has invested his or her money to gain the position, you now have converted a turnover problem into a position that can be a learning experience.
You now also gain control of the position by knowing that the person in that position will be leaving you at the completion of their training period (fixed date), so you can plan ahead to refill the position.
Benefit #4 Improve Your Diversity Program
Many companies are looking for ways to increase diversity within their organization. This is an exceptional method. We have seen companies through our programs set up in house mentoring programs, which have resulted in increased performance and improved attitudes from their long-term employees as well. In other cases companies have used the addition of internationals to build corporate moral by having periodic functions, which incorporate trainees into the function.
Benefit #5 Trainees can help your organization if your organization is involved internationally and you require Bi-lingual support.
This benefit is best explained by a couple of examples. We had a client that was in the import/export business primarily with eastern European countries. We recruited a young lady for them who had strong language skills and was interested in the import/export business. She turned out to be such an asset to their business that they sponsored her for an H1-B Visa when she completed.
Another example is a telecommunications company with offices in the Ukraine. We recruited trainees through the J-1 program that came to the US did their training and were subsequently offered jobs back home when they finished their program.
Benefit #6 When the economy is doing well and unemployment is low international trainees are a source of excellent employees.
As we have seen time and time again when the economy is doing well it is very difficult to find good workers who are interested in doing the job and learning. The pool of good workers starts to dry up as the unemployment percentage decreases. We often also find that the "loyalty factor" works inverse to the state of the economy. So as the economy improves and the available jobs increase employees are less likely to stay with an employer. So your turnover percentage starts to increase. Sadly that is the point at which you really need loyal workers, and here is an area where an internship program using international trainees can be a real benefit to your organization. First, a trainee that comes through the J-1 EVP program is mandated by the US State Department to remain with the employer who hosted the trainee for the duration of their program, unless there are extenuating circumstances. Therefore you do not have to worry that your trainee will leave you for a higher wage from another employer.
These Six (6) Benefits we consider to be the main reasons for using an international trainee within your organization. There may well be other benefits particular to your organization. If you have any, we will like for you to share them with us.
If I can be of any other assistance feel free to contact me directly at lostocco1@internship4america.com or I can be reached at 404-531-9574.
Alexander H. Lostocco