Solving Staffing Problems: The Impact of H-2B Workers on Construction Projects
Since the days of the pandemic, various industries, including construction, have been facing a major problem of hiring skilled workers. It has become a serious issue as America is witnessing a growing demand for new projects and infrastructural development opportunities. The contributing factors to this issue are the advancement in technology and an aging workforce. There is a need for staff that are young and have ample knowledge of handling the new age equipment.
The only option left in such a scenario is to hire foreign labor. But it is not as easy as it sounds. To hire foreign labor in the United States of America legally, construction companies have to go through the H-2B visa process. In this blog, we will be helping you with how the process works and how H-2B agencies can help you out.
Understanding the H-2B Visa Program
The H-2B visa allows companies to hire foreign labor across the globe to work as temporary workers for non-agricultural jobs. The intent of this program is to provide jobs not permanent residence and the workers do not need to have a specific set of educational or skill requirements.
There are several studies that showed construction industries as the fifth highest in H-2B hires. But to start with the process you should be familiar with the eligibility criteria for workers to have a clear understanding whether you can hire foreign labor or not.
Eligibility Criteria For Employers
Before hiring for an H-2B visa, workers should make sure to check the following requirements before starting off with the H-2B visa process:
Need for Employment:
The need to hire workers outside the United States of America should be temporary workers. The need should be either one-time, seasonal, intermittent, or peak load.
2. Duration of Employment:
The employment period should be less than one year.
3. No workers available in the U.S.:
Employers should make sure to check whether U.S. workers are available for the job.
Application process and timeline
An H-2B visa application has different elements and time frames. Let's dissect each step one by one before you reach out to a H-2B agent:
I) Filling ETA Form 9141:
It's important to file a wage request with the (NPWC) National Prevailing Wage Center at least 60 days before the need arises. For example, if you need temporary staff by October 1, you are required to present the ETA form 9141 by April 4 (90 days) and May 4 (60 days).
II) Placing Job Order With SWA:
After receiving your wage determination certificate, submit a job order to the State Workforce Agency (SWA). You must give information about your employment area and file an appendix with the DOL and the ETA form 9142B.
This should be filled in between 90-75 days before employment is needed. SWA will take at least 6 business days to provide information for any deficiencies to the DOL.
III) Acceptance of NOD:
After receiving the iCERT-filed ETA form 91242B, the DOL will provide the h2b visa employers with a notice of Deficiency(NOD) within 7 days.
IV) Notice of Acceptance:
The next stage is to conduct the recruiting stated in the Notice of Acceptance, which should take 14 days from the date of issuance.
V) Recruitment Report
The employer must receive referrals and hire qualified US workers up to 21 days before the start date. DOL will then determine whether your application will be denied or certified, and then the final determination will be issued with the data specified in the Notice of Acceptance. The employer's obligation is to keep on updating the recruitment report and create a final recruitment report.
VI) Certify the H-2B Application
Following receipt of the original certified ETA Form 9142B, the employer needs to complete Appendix B's footer and save a copy for their records. When submitting the I-129 petition, provide a signed copy of the completed Appendix B and the original certified ETA Form 9142B to the appropriate USCIS Service Center. Aztec Labor can help you efficiently handle everything.
VII) USCIS Process takes 1-3 months
Employers can file Form I-129 with a certified ETA Form 9142B starting October 1 for the next fiscal year's cap. USCIS processing takes 1-3 months or 15 days with premium processing.
VIII) Visa Application
It may take around 2-3 weeks to complete the visa application process. Non-immigrants may not be allowed to the United States until 10 days before the start of employment.
Current Staffing Issues in Construction
Each year, the construction industry has some new staffing issues to deal with. Here are the common staffing issues that H-2B consultants can help you out with:
Lack of Experience:
Hiring managers are most of the time stuck in a situation where there is a lack of experienced staff. In addition to this, the ones who possess the right amount of experience will soon come to the retirement stage.
Transportation Challenge:
Many employees face the issue of going to and from their current working location to their home. As the construction work requires the workers to be physically present on the job, this is a major problem.
Attracting Young Talent:
The construction industry faces important challenges in attracting young talent. Lower wages compared to other sectors, perceptions of demanding outdoor work, limited career progression, and the demand for longer work hours often deter young people from pursuing careers in construction.
Impact of labor shortages on project timelines, costs, and quality
Compromised Quality:
Reduced hiring of foreign workers can significantly delay project start dates. Essential personnel, such as project managers, superintendents, or specialized tradespeople, may be committed to higher-priority or more lucrative projects, leaving new projects understaffed.
Delayed Project Start Dates:
A shortage of skilled workers can significantly delay project start dates. Essential personnel, such as project managers, superintendents, or specialized tradespeople, may be overcommitted to other projects that are deemed more urgent or profitable.
Potential for Liquidated Damages:
Project delays caused by labor shortages can result in significant financial penalties imposed by clients, severely impacting project profitability. Many construction contracts include liquidated damages clauses specifying financial penalties for missed deadlines.
How H-2B Workers Address Staffing Problems
The h2b visa program is designed to tackle temporary labor shortages in specific industries within the United States. By providing a legal pathway for foreign workers to fill these positions, it helps businesses overcome staffing challenges. Here's how H-2B workers contribute to addressing staffing problems:
Filling Labor Gaps
The H-2B visa program provides a means to address labor shortages in industries experiencing seasonal demand, peak workloads, or skill deficiencies. By allowing foreign workers to fill temporary positions, businesses can maintain operations, stimulate local economies, and contribute to tax revenue. However, the program faces challenges such as visa caps, potential worker exploitation, and the complex interplay with domestic labor markets.
Economic Impact
H-2B workers contribute significantly to the U.S. economy. By filling labor shortages, they help businesses stay operational, preventing closures and job losses among domestic workers in related roles. Additionally, H-2B workers stimulate local economies by spending on goods and services, and their employment generates tax revenue for government coffers.
Access to specialized skills:
In industries requiring specific skill sets that may be in short supply domestically, H-2B workers can offer unique expertise. For example, seasonal agricultural tasks, landscaping, or specialized construction techniques might demand skill sets that are uncommon or unavailable in the local labor pool.
Benefits of Hiring H-2B Workers for Construction Projects
Cost savings and financial advantages:
By providing a stable workforce, H-2B workers can help construction companies avoid the high costs associated with labor shortages, such as overtime, recruitment fees, and project delays. Additionally, their consistent availability can contribute to more efficient project planning and budgeting.
Improved Project Timelines and Efficiency:
A consistent workforce of H-2B workers can streamline construction processes, reducing delays caused by labor turnover or shortages. This leads to more predictable project timelines and improved overall efficiency.
Enhanced Project Quality and Workmanship:
H-2B workers often possess specialized skills and experience in construction, contributing to higher-quality workmanship and fewer errors. This can help in enhancing client satisfaction and a stronger reputation for the construction company.
Increased Productivity:
A full complement of workers, including H-2B employees, can optimize labor utilization and maximize productivity on construction sites. This can lead to quicker project completion and increased profitability.
Access to a Skilled Workforce:
In regions experiencing labor shortages, H2B seasonal workers can provide access to a skilled workforce that might otherwise be unavailable. This can help construction companies meet the demands of complex projects and maintain a competitive edge.
Conclusion
The construction industry is grappling with significant staffing challenges, containing a shortage of skilled workers, an aging workforce, and difficulty attracting young talent. These issues can lead to project delays, increased costs, and compromised quality. The H-2B visa program offers a potential solution by providing access to a temporary foreign workforce.
While the process can be complex, the benefits of hiring H-2B workers, such as cost savings, improved project timelines, and access to specialized skills, can be substantial.
Aztec foreign labor can be a valuable partner in navigating the H-2B visa process. With our expertise in immigration law and construction industry challenges, we can guide employers through the complex application process, ensuring compliance with regulations and maximizing the chances of a successful outcome. By leveraging AZTEC's services, construction companies can effectively address their staffing needs and mitigate the risks associated with labor shortages.
Would you like to know more about AZTEC's services or how we can assist with your H-2B visa needs? Get in touch with us today!