More businesses need to complete a sponsor licence application, especially after Brexit, if they wish to employ migrants via the Skilled Worker scheme. Surprisingly, currently, only 1.5% of UK employers have a sponsor licence. Businesses are missing out on an opportunity to improve their workforce.

Sponsor licences are important because they enable companies to employ skilled workers for a longer term. Granted through the Home Office, sponsor licenses are applied for by the business rather than the worker.

Immigration aids the success of businesses

Businesses are now competing globally for their talent pool, so in order to stay competitive they need to be searching internationally for their workers rather than just nationally.

Companies are viewing a sponsor licence as a critical part of their overall business plan, with some stating that a good immigration strategy is vital for a successful business.

Home Office data demonstrates that the number of UK companies hiring skilled workers from overseas has surged by 64% over the last two years. A government study found that migrants bring knowledge and skills over and above what is outlined in the job specification.

Why aren’t businesses utilising the Sponsor Licence?

Unfortunately, the Skilled Worker visa scheme is quite expensive which puts many companies off.  Costing about £7,000, the visa scheme can only bring one employee into the UK for five years.

With the cost of the sponsor licence, employers are also subject to the Immigration Skills Charge, which can range between £364 and £1,000 for each year of sponsorship.

This system can feel unattainable for many employers who aren’t aware of the many benefits that come with hiring a migrant.

Increase in skilled worker applications

Since 2020, the number of UK employers holding a sponsor licence has only increased by 1.5%, despite the skills shortages currently in Britain due to Brexit. Meanwhile, Home Office data has found that UK skilled worker visa applications made by people from South Asia have increased by a staggering 115%.

Businesses should be utilising this available talent pool to help aid the success of their company.

Sponsor Licence processing

Sponsor licence application take about two to three months to process. UK employers who already have a sponsor licence can employ steadily right now to help tackle current skills gaps in their business.

On top of this,  they are also better prepared for when there is an upturn in the economic situation.

A sponsor licence is important for businesses to obtain because it can ensure the company remains agile when an international recruitment opportunity arises.  Most businesses view a sponsor licence as a valuable insurance policy to enable future recruitment if necessary.

Sponsor licences are needed because migrants offer different technical and industry backgrounds which can enhance a team’s ability to solve problems by combining the best approaches.

For more information about Sponsor Licences get in touch with Work Permit Cloud today.