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May 2008

J1 Competition Heats Up

The shortage of H2B visas is forcing increased reliance on J1 visa programs.

Written by Rick Kahl | 0 comment

The stalemate over H2B visa quotas is likely to continue through the presidential election, increasing the competition for J1 student-employees, even as sponsors introduce a new visa category for Australia and New Zealand.

No matter how well a resort plays the game, though, the J1 program can not completely replace H2B workers. The four-month visa does not often coincide exactly with the resort’s season. Dates and rules vary by country. Brazil, for example, sets a hard and fast date for its students’ return: March 15. Peru is is a bit more flexible.

And, of course, the student-employees are not suited to all positions resorts have to fill.

But there are ways to milk the J1 program for all it’s worth. “The J program is going to be a larger part of the recruitment mix,” says Phil Simon of J1 sponsor CIEE. “People have realized that one or two avenues is not enough. They are looking in multiple channels.” That includes H2Bs, local solutions, retirees and seniors, and U.S. high school and college students And that, he adds, is the wise course.

One new program with potential is the “working holiday” category, which took effect in September 2007. It allows students from New Zealand and Australia to stay in the U.S. for 12 months of work and travel. That sounds ideal for resorts, but sponsors caution that it’s no panacea. First, the numbers are limited—no more than 15,000 will be issued for Australia, and 4,000 for New Zealand—and sponsors expect actual numbers to be significantly less. “If anyone gets close to that, it would be a miracle,” says Maria Ferguson of CCUSA. It’s not clear how many universities will encourage, or even allow, students to take a year off. And finally, sponsors and governments are not seeing huge interest.

“Everyone sees this as the perfect next solution, but it will be very competitive,” says Ferguson. “Kids will be very picky about the jobs they choose.” Choices will be up to the students, who can change jobs and take time off as they please. That might mean they will work several seasonal jobs, which suits resort needs. But they might just as easily decide to take jobs for short periods. This is still a bit of a wild card.

Two other programs that can help resorts replace some H2B jobs are J1 work training and working interns. These visas, too, are for a 12-month period in the hospitality industry. But again, these won’t suit every resort, or all positions. In each, the employee is expected to rotate through a series of jobs (that’s the training and intern aspect). Working intern visas are limited to those in their last year of school or recent grads. Work training employees must be grads with a year of prior experience, or have five years’ experience and no degree.

Competition will be fierce for next year because more areas are looking for employees to fill the gap of H2Bs, and because the shrinking value of the dollar makes work in other countries more appealing. “A student can earn a lot more currency in London, say, than in the U.S., so you have to make the bottom-line offer better,” Simon says.

“Pay is certainly a factor,” agrees Geoff Watson, president of Intrax. “But there are more important aspects. We emphasize that this is an exchange program, and that the students are not coming here to make a ton of money.”

Given all that, it’s important for resorts to put their best pitch forward. First, says Simon, “tell a good story. When projecting the job offer you should use nice pictures on the website. Collect pictures from current foreign students. Just listing pay and benefits won’t cut it.” Present and past employees are valuable resources, as word of mouth is the best advertising. “Remaining friendly with ex-employees is key to developing word of mouth,” Simon says.

“Successful hosts provide a package, including housing, access to transportation, elements that make it a comprehensive experience,’” Watson agrees. “What opportunities will kids have? What is the resort like? What are the opportunities outside of work? Students are there to work, and for a great cultural experience. End-of-season bonuses, field trips to local destinations, all these enhance the experience. The more resorts can do in that regard, the happier the students will be, the harder they will work.”

“Don’t overweight one cultural group,” Watson adds. “It’s important to have a good cultural mix.” Adds Rothchild, “The number of countries whose students can work through the end of a ski season is small. But the right mix from the right countries can help.”