The recent conflict in Ukraine has created over 6 million refugees, but this group is only a fraction of the 123.2 million people worldwide who were forcibly displaced at the end of 2024 due to persecution, conflict, and violence. There are now over 100 million people seeking asylum after leaving countries in Africa, Southeast Asia, and the Middle East, as well as Ukraine. As an employer, you may be wondering what you can do to help people find financial and personal stability, particularly as data shows the median weekly earnings of foreign-born workers ($1,001) lag behind their native-born counterparts ($1,190). While hiring refugees is complex due to many structural factors, it's not impossible—and it can benefit your organization while changing a person's life.
Interested in Oyster but want more information about how the platform works? This product overview should help.
What Are The Barriers To Employment For Refugees?
Training Not Recognized
Refugees face four primary employment barriers that limit their career opportunities:
- Credential recognition: Many U.S. companies don't recognize overseas education, despite 15.5% of foreign-born workers having some college or an associate degree, and 40.5% having bachelor's degrees or higher
- Career mismatch: Foreign-born workers are more likely to be in service roles than management occupations, and this occupational disparity for women is particularly pronounced: 30.6% of foreign-born women work in service jobs, compared to 17.8% of native-born women.
- Verification challenges: Employers struggle to assess international experience and training
- System differences: Many countries use apprenticeships instead of U.S.-style licensing
Here's what makes credential verification even trickier:
- Different training systems: Many countries use apprenticeships instead of formal licensing
- State-level requirements: American licensing guidelines are typically established at the state level instead of federally
- Verification challenges: Employers have a hard time verifying a candidate's experience and training
The Improving Opportunities for New Americans Act of 2020 would require a federal study on employment opportunities for immigrants and refugees with professional credentials. The bill hasn't advanced to a debate or vote yet.
Even if passed, implementation would be slow. States would need to review their labor guidelines and implement any federal recommendations, potentially extending the timeframe for integrating refugee workers.
It's important to note that these are just the challenges in the United States, which accepts a small number of refugees each year. The vast majority are resettled in European countries, which also have requirements for verifying education and work credentials and employment eligibility. If you're already hiring globally, it's important to be aware of these host countries' guidelines.
Unconscious Bias
The United Nations High Commissioner for Refugees (UNHCR) defines refugees as those who crossed an international border to escape conflict, violence, and persecution. The agency has also identified a new class of climate refugees fleeing environmental conditions that make it difficult to sustain life.
Unfortunately, these individuals often face hiring bias based on:
- Nationality and race: Preconceptions about certain countries or ethnic backgrounds
- Religion: Discrimination against certain faiths or practices
- English proficiency: Language barrier assumptions
- Work history gaps: Time spent fleeing and obtaining asylum creates resume gaps that feed into hiring biases
- Capability doubts: Assumptions about their ability to contribute, despite data showing that among workers with a bachelor's degree or higher, the earnings were slightly higher for foreign-born individuals than for native-born workers.
Employers need to evaluate their hiring practices to ensure they're giving all candidates the fairest chance, especially considering that foreign-born men participate in the labor force at a significantly higher rate (77.3%) than their native-born counterparts (65.9%). This involves creating a blind application process to remove certain identifying details that might allow for bias and instead highlight a candidate's core skills and qualifications. In-house diversity efforts, including mentoring entry-level and international workers, can help both foreign-born and native employees develop stronger cultural understandings and make it easier for refugee workers to thrive and advance.
Lack Of Social Networks
Research from The Adler Group indicates that 85% of jobs are filled through existing networks. Moreover, up to 75% of candidates are considered passive rather than active, meaning they're made aware of openings rather than seeking them out. This speaks to the value of personal and professional connections—and highlights a significant disadvantage refugees encounter in the labor market.
Not only do refugees lack the opportunities to learn about job openings, but they also struggle to find references to support the applications they can pursue. This is true at all levels, from former coworkers and teachers who can vouch for a person's knowledge and skills to friends and other community members who could provide basic character references. Refugees may have limited ways of reaching out to their previous contacts for support, and those individuals may not be able to help if they are also seeking asylum or resettlement.
Unfamiliarity With Local Rules And Regulations
Refugees typically enter a country that borders theirs, but that isn't always where they end up permanently. The U.S. resettlement process, which grants a refugee permanent resident status, can take up to 36 months. This means people have asylum-seeker protections in other countries for as long as three years, so they must navigate multiple sets of new social norms and labor laws in a relatively short time.
Beyond legal barriers, refugees face practical challenges that limit employment options:
- Documentation issues: Passports may have been lost or stolen in transit, or they may lack validation stamps from the host country's immigration agency
- Banking restrictions: While most nations permit asylees to open bank accounts, refugees often do not have the necessary documentation to do so
- Housing requirements: In some countries, asylees are required to have stable housing and a known address to be eligible for a bank account
- Payment limitations: These restrictions can limit a person's employment options if they can't deposit funds
In the U.S., refugees are required to pay income taxes on money earned both domestically and internationally, including investment income. Some earnings may also be taxable in other countries. However, workers may be eligible for the foreign tax credit under certain circumstances.
How Distributed Remote Work Can Help
Distributed remote work facilitates global hiring, which means employers can meet potential workers where they are today and continue the employment relationship if they move somewhere else in the future. Being able to operate around the world lets you serve as an employer of record for a refugee and manage their payroll and benefits, even if they eventually settle elsewhere and never set foot in an office.
Additionally, the rise of virtual and mobile banking makes it easier for refugees to access funds and cash transfers. Refugees use mobile internet services at a higher rate than the general population and tend to purchase local SIM cards when they enter a new country, attaining viable methods to be paid by their employers.
How Global Employment Platforms Support Refugee Hiring
Here's how global employment platforms solve refugee hiring challenges:
- Legal compliance: For companies without legal entities in a refugee's host country, an Employer of Record (EOR) handles the complexities of local labor laws
- Payroll management: Manage payroll in local currencies with proper tax handling
- Benefits administration: Provide statutory benefits that meet local requirements—all without needing in-house legal expertise for every country
- Risk reduction: Eliminate compliance risks in unfamiliar jurisdictions
This model directly addresses the barriers of navigating unfamiliar local rules and ensures that skilled individuals receive fair, stable, and professional employment, regardless of their location.
Getting Started With Refugee Talent Acquisition
Hiring refugees is a powerful way to build a diverse, resilient team while making a meaningful impact. By partnering with organizations that support refugee resettlement and leveraging technology to manage the operational side, you can access incredible talent pools.
A global employment platform removes the administrative and compliance burdens, so you can focus on finding the right people and integrating them into your team. If you're ready to build a more inclusive global workforce, you can start hiring globally with a partner who can navigate the complexities for you.
.avif)
