Finance to enable migration for displaced talent

The cost of migration varies depending on the departure and arrival countries, the visa pathway, and the number of individuals moving. Typically, skilled migration costs several thousand dollars, with some costs typically falling on the migrating individual. For displaced people, who have often lost all their savings, these costs are a significant barrier to skilled migration.

To ensure that displaced talent mobility is financially viable, costs should be shared by the primary beneficiaries – employers, migrating individuals, and destination countries. Employers should be expected to contribute financially as a cost of recruitment, and in some cases, visa policies will require employers to cover certain costs. Access to finance, loans, and sources of philanthropic and pro bono assistance can make it easier for displaced talent to cover their portion of the costs. Destination countries can also share in covering some of the related costs, such as funding settlement and integration support on arrival and waiving certain government fees and charges.

This article outlines the standard costs of skilled migration, potential financing sources, and measures that managing organizations can take to help parties collaborate toward effective cost coverage. 

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Cost coverage for displaced talent mobility

Multiple people and entities benefit when displaced people are able to move for international work. Because there are multiple beneficiaries, there are also multiple parties that can contribute to the costs. 

Employers

It is standard for employers to shoulder costs associated with recruiting an international employee. Depending on the visa program, there may be some costs that must be covered by employers by law. In addition to these costs, employers generally provide their own relocation packages to internationally hired recruits. While sometimes these relocation packages cover all costs, typically, they only cover part of the total cost of migration.

Displaced talent

Because displaced people who move for international jobs will be making a salary immediately upon their arrival, they can contribute to the costs of migration, covering items that employers typically do not. If they do not have savings available, displaced people may be able to take out a loan to cover migration-related costs. Loan options include:

• Destination government loans – Traditional refugee resettlement programs have long made no-interest loans backed by the receiving government available to refugees. These loans are frequently administered by the International Organization for Migration on behalf of governments.  Increasingly, these same loan products are being made available to displaced people who are relocating through labour pathways in some situations as well. These loans are typically used to cover the costs of air travel and start-up costs upon arrival in the destination country. Immigration Loans Program (ILP) in Canada is an example of such loan.
• Non-government loans – Where government loans are unavailable, loans from non-profit lenders can be an important way to get capital in the hands of displaced talent. Private lenders can be predatory and/or scams, so it is important to pursue this option only from reputable sources. Existing lenders that work specifically with displaced people migrating for work include The Pathway Club (Global) and Windmill Microlending (Canada).
• Private loans – Private lenders, such as banks, can be another source of capital for some displaced people. Private lenders can be predatory and/or scams, so it is important to pursue this option only from reputable sources. 

Governments

In some cases, governments can waive or reduce costs associated with migration. For example, in Canada, the Government has waived application fees, biometrics fees, and medical check fees.  

Mapping the costs of skilled migration

Visa application costs:

Employer process fees (e.g. labor market analyses, national funds)

Legal fees (migration agent, immigration lawyers)

Language testing

Visa application fees

Document translation

Transcript certification

Police certificates

Passport renewals

Medical screening

Biometrics appointment

Transport costs to fulfill application requirements

Departure costs:

Exit fines (charged by host country for time spent with an irregular status)

Airfare

Post-arrival costs: 

Transit from airport

Transitional housing

Start up costs (rent, utilities, food, clothing, furniture, internet, phone service, etc)

Healthcare

Meeting proof of funds requirements 

Some countries and visa pathways require that applicants can demonstrate they have savings in their bank accounts. In general, pathways designed specifically for displaced talent are waiving this requirement in recognition that it is a major barrier for many displaced people. Meeting this requirement can be a challenge for displaced people for several reasons. In many countries, displaced people are not given access to financial systems, and opening bank accounts is not possible. For those who do have bank accounts, amassing savings while living in displacement and restricted from the formal labour market can be a major challenge. These conditions can be further exacerbated by financial crises in countries where displaced people live.

 In some cases, governments will allow this proof of funds to be met by loans, such as in Canada through a partnership with Windmill Microlending.

Informed decision-making about financing options 

Managing organizations can play a helpful role in supporting displaced people to understand their options when it comes to financing migration. In particular, managing organizations can help displaced people to understand the risks involved in pursuing different financial options, and to develop sustainable plans. Managing organizations can help employers understand the financial realities that displaced people face and encourage employers to take these factors into consideration as they develop plans to share cost coverage.

Visa application costs

Spending on visa application costs entails risk for displaced people who do not yet have assurance that their visas will be approved, and therefore cannot be certain they will be able to start their newly offered jobs. For this reason, it’s important to be transparent with displaced talent about all costs involved in migration for work before they begin to accrue costs.

Important questions for displaced people to consider before accepting any external financing options include:

• What is the source of the financing? Is it credible? 
• Who can apply?
• What can the financing be used towards?
• What, if any, are the terms of repayment? 
• Can the loan be repaid from a different country than the one in which it was borrowed?

Transit and post-arrival costs 

Once a visa application has been approved, a displaced person has reasonable assurance that they will be able to migrate and begin their new job, thereby earning a salary which can support their costs of living. At this point in the process, displaced people may feel more comfortable pursuing loan options if they have insufficient savings to cover initial costs.

Beyond reviewing the costs of migration, managing organizations can support displaced talent to develop a realistic sense of the cost of living in their destination community.

Visit our article on supporting displaced talent to make an informed decision about their migration and our article on managing expectations for additional considerations.

Supporting the logistics of financing pre-departure costs 

Employers may be willing to cover costs associated with visa applications that have to be spent in the country where a displaced person is currently living (a “source country”). However, employers might struggle with the logistics of covering these costs, particularly where expenses must be paid in person or in cash. Because many displaced people have limited access to bank accounts, employers may struggle to reimburse or advance funds to their future employees for this cost coverage.

In these cases, managing organizations with a presence in the displaced person’s country of residence can play a helpful role by accepting funds from the employer on behalf of a displaced person and disbursing those funds directly to the displaced person or paying necessary costs on their behalf. Any cost coverage arrangement of this nature should be well-documented and transparent to all parties involved.