More than half of small employers would struggle to afford Tier 2 visa costs as they stand under the new points-based immigration system, a major report has revealed.
The finding forms part of the Federation of Small Businesses’ (FSB) review of the brand new immigration regime officially launched by the Government this week.
According to the business body, small businesses require a focus on “simplicity and cost control”. The research reveals that the price of sponsoring a Tier 2 visa can cost up to £3,000 – unaffordable for over half of small businesses.
Commenting on the study, FSB National Chairman Mike Cherry said the Government should attempt to “keep that figure below £1,000, to enable firms to invest in jobs and training”.
Elsewhere, the report shows that small employers rank “proficiency in English” as the most important quality in a new employee, above work experience or qualifications.
The study also found that almost four in 10 (38 per cent) small employers have struggled to recruit staff over the past 12 months, with 42 per cent of those citing a “challenge in finding the right skills”, and 35 per cent “flagging the unwillingness of UK citizens to work in their sector”.
Under the new system, points will be assigned for “specific skills, qualifications, salaries or professions”, with visas awarded only to those who gain enough points.
A salary threshold of £25,600 will also be set for skilled workers looking to find permanent employment in the UK.
“We see the benefits of a points-based model, so long as it’s one that’s easy to use and affordable for small businesses – almost all of which have no experience of using our current immigration system,” said Mr Cherry.
“Against a backdrop of stifling skills shortages, sluggish economic growth and an ageing population, it’s critical that we get this right, particularly as the timeframes are so short.”
Does your business need overseas support and advice? For help, get in touch with our expert international team today.