What Is Recruitment?

In human resource management, “recruitment” is the process of finding and hiring the
best and most qualified candidate for a job opening, in a timely and cost-effective
manner. It can also be defined as the “process of searching for prospective employees
and stimulating and encouraging them to apply for jobs in an organization”. In simple
words I can say recruitment is nothing but, finding and hiring suitable candidate for the
suitable position.

It is one whole process, with a full life cycle, that begins with identification of the
needs of the company with respect to the job, and ends with the introduction of the
employee to the organization.

When we speak of the recruitment process, we immediately think of activities such as

the analysis of the requirements of a specific job, attracting candidates to apply for that
job, screening the applicants and selecting among them, hiring the chosen candidates to
become new employees of the organization, and integrating them into the structure.

Obviously, the main reason why the recruitment process is implemented is to find the
persons who are best qualified for the positions within the company, and who will help
them towards attaining organizational goals. But there are other reasons why a
recruitment process is important.

To ensure proper alignment of skill sets to organizational goals.

Through recruitment, organizations make sure that the skill sets of the staff or
manpower of the company remains aligned to its initiatives and goals.

In the event that they notice some positions do not really contribute to the advancement
of the organization towards its goals, then it can take the proper action to correct the
probably through job redesign, restructuring of the workforce, or conduct of job
enrichment programs.
To ensure effective and efficient recruiting.
Effective recruiting means that the person employed for the job is the best possible
candidate for it, with all the required skills, talents and qualifications of the job.
Efficient recruiting, on the other hand, means that the process has been carried out
without incurring a lot of costs on the part of the organization. By following the
process, there is a greater chance that the human resources department can get the best
possible person for the job.

Organizations may carry out their hiring processes their own way, but without a system
or set guidelines in place for its conduct and implementation, there is a risk that the
company may incur more expenses than necessary.

The company will also end up wasting its resources if the wrong or unqualified person
was actually hired. Not only will this create problems for the company in the long run,
particularly in the attainment of its goals, but it would mean that the organization
would also have wasted its resources in training an employee that is not right for the
job after all.
US Staffing (or)
Recruitment

This term is commonly used in 'US Staffing' industry that is supported through
Recruiters in India (Used across the globe in fact). Requirements from IT/Non IT
domain are fulfilled by Recruiters who go on and hunt for the best match possible for
clients in US.

Recruitment: Recruitment is the process of finding and attracting capable applicants

for employment. Recruitment refers to the process of sourcing, screening, and selecting
people for a job or vacancy within / for an organization. In other words, recruitment is
about finding the right talent, for the right job at the right time.

US Recruitment: US recruitment is the selection process of consultant (candidate) for

the US companies or clients from the home town. US Staffing is a Talent Acquisition
Industry which brings together HR Departments of the Clients, the VMS and the
managers of staffing companies to hire the best talent for the vacant jobs in shortest
possible time

Key Participants in US Staffing:

Following are the people who play major role in US Staffing industry.
 Client
 Account Manager or Delivery Manager (Onshore Coordinators of Staffing Agency)
 Consultant / Candidate
 VMS/MSP Portals
 Recruiters
Overview of United
States of America
(USA)
USA MAP with State Names and Capitals
In USA there are 50 States and 9 Times Zones are there.
There are 3 different images I mentioned below, which can help you to understand
better and more about the total number of States, Capitals and Short forms.

United States Time Zones

The United States uses Nine (9) standard time zones. From east to west they are
1. Atlantic Standard Time (AST)
2. Eastern Standard Time (EST)
3. Central Standard Time (CST)
4. Mountain Standard Time (MST)
5. Pacific Standard Time (PST)
6. Alaskan Standard Time (AKST)
7. Hawaii-Aleutian Standard Time (HST)
8. Samoa standard time (UTC-11)
9. Chamorro Standard Time (UTC+10)

The concept of Daylight Saving Time is the practice of advancing of clocks so that
evenings have more daylight and mornings have less. In this, typically clocks are
adjusted one hour forward at the start of spring and are adjusted one hour backwards
near the start of autumn. Normally in US, the daylight saving is applied or starts at the
last week of February and ends at the end of last week of October following
Halloween’s day.
Daylight Saving Time begins at 2:00 a.m. local time on the second Sunday in March.
On the first Sunday in November areas on Daylight Saving Time return to Standard
Time at 2:00 a.m. The names in each time zone change along with Daylight Saving
Time.
Eastern Standard Time (EST) becomes Eastern Daylight Time (EDT), and so forth.
Arizona, Puerto Rico, Hawaii, U.S. Virgin Islands and American Samoa do not
observe Daylight Saving Time.
Below are the Total 50 States, their short forms/Codes and Capitals

States Codes Capitals

Alabama AL Montgomery
Alaska AK Juneau
Arizona AZ Phoenix
Arkansas AR Little Rock
California CA Sacramento
Colorado CO Denver
Connecticut CT Hartford
Delaware DE Dover
Florida FL Tallahassee
Georgia GA Atlanta
Hawaii HI Honolulu
Idaho ID Boise
Illinois IL Springfield
Indiana IN Indianapolis
Iowa IA Des Moines
Kansas KS Topeka
Kentucky KY Frankfort
Louisiana LA Baton Rouge
Maine ME Augusta
Maryland MD Annapolis
Massachusetts MA Boston
Michigan MI Lansing
Minnesota MN St. Paul
Mississippi MS Jackson
Missouri MO Jefferson City
Montana MT Helena
Nebraska NE Lincoln
Nevada NV Carson City
New Hampshire NH Concord
New Jersey NJ Trenton
New Mexico NM Santa Fe
New York NY Albany
North Carolina NC Raleigh
North Dakota ND Bismarck
Ohio OH Columbus
Oklahoma OK Oklahoma City
Oregon OR Salem
Pennsylvania PA Harrisburg
Rhode Island RI Providence
South Carolina SC Columbia
South Dakota SD Pierre
Tennessee TN Nashville
Texas TX Austin
Utah UT Salt Lake City
Vermont VT Montpelier
Virginia VA Richmond
Washington WA Olympia
West Virginia WV Charleston
Wisconsin WI Madison
Wyoming WY Cheyenne
Recruitment Life
Cycle(US)
Steps in Recruiting Life Cycle
 Client
 Account Manager
 Assignment of Requirement to recruiter
 Requirement Understanding
 Formulating Search String (Keywords, Boolean Search)
 Calling up candidates
 Getting updated resume
 Checking the Quality of Resume and Matching it to the Requirement
 Format the Resume and Submitting the resume to Account Manager
 Account Manager consults the candidate for further clarifications, if required.
 Resume is submitted to the client.
 Client provides feedback / interview request.
 Recruiter arranges the interview and confirms it with the client.
 Closure.
Recruitment/Staffing Company and Roles in company
 Recruitment/Staffing Company
 CEO/Founder
 BDM
 BDE
 Account Manager
 Team Leader
 Sourcing Coordinator
 Recruiter
1. IT/Non IT Recruiters
2. Bench Sales Recruiters
3. OPT Recruiters

What is a Staffing Agency?

A staffing agency is an entity that has employees that can be hired out for temporary or
long term work. A staffing agency is also referred to as an employment agency. It
provides temporary workers. Some agencies are industry focused or specialized.
Staffing agencies are different from placement agencies or retained search services.
Placement agencies collect a fee to recruit a full-time employee. Those employees
belong to the client company – not the agency.

How Do Staffing Agencies Work? Staffing agencies conduct both the hiring and
firing of employees. They also pay for the employment taxes, Medicare, Social
Security, etc. The client company specifies the amount of temporary workers needed
and the hourly rate. Frequently, the agency specifies the hourly rate for each worker,
but it is negotiable.

Why Hire a Staffing Agency? One would hire a staffing agency if they need
employees now and they want to offset employment costs (benefits, employment taxes,
etc.). There is either a time constraint or a resource contract. Some of the benefits
include getting a number of employees quickly and knowing that they are qualified for
the position.

Oftentimes, agencies have run credit reports, criminal background checks, and drug
tests on those employees so the client never has to worry.
Types of VISAS for US & List
of US non- immigrant and
Temporary VISAS
What Is Visa?
Visa is an entry clearance certificate that is placed in a travel or passport
document, which gives you permission to enter into applied country.

Types of VISAS
Visas are mainly classified into two major categories
 Immigrant Visa
 Non-immigrant Visa

Immigrant VISA: This is for people who intend to live

permanently in US. Types of Immigrant Visa
Example - GC (Green Card): An official document issued by the US
Government to alliance allowing them to work permanently in US.

Non-immigrant VISA: This is for those people with permanent residence

outside US but wish to be in US for a temporary basis- for tourism, medical
treatment, business, temporary work or study.

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Other US Visas

From the recruitment perspective, the following information about comparing US visas,
differences between US visas and how US visas are related to employment (US TAX
TERMS like 1099, w2, 1099) will help the recruiter to source profiles correctly for the
client’s requirements or their own requirements. Moreover, it will help the candidates
also to search the right employer and working on the correct tax term. We have
provided the common visas used in IT recruitment.

H1B: US Work Visa (Applicable to several countries). Validity Period can be extended
also

H1B1: For Singapore and Chile Citizens

H4: Dependent to H1B, and H1B1. H1B Dependent Visa. Validity Period can be
extended

based on spouse’s visa.

L1A: Intra Company Transfer

L1B (L1 Blanket): Intra Company Transfer work

visa L2: Dependent to L1A (with EAD, they can

work) L2: Dependent to L1B (with EAD, they can

work)

F1(OPT): US Study Visa (Optical Practical Training). They will get EAD

card. F1 (CPT): US Study Visa (Curricular Practical Training)

F2: Dependent to F1

TN: Canadian and Mexican

Citizens TN1: Canadian Citizen

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TN2: Mexican Citizen

TD: Dependent to TN

E-3: Australian

Citizens E-3D:

Dependent of E3

B1: Business Visa (Validity period based on visa stamping)

B2: Visitor Visa (Validity period based on visa stamping)

Green Card (EAD): Before getting GC, you can get EAD

Green Card: Permanent residency visa

USC: US Citizenship

Depth analysis about all other visas

Special category for Australian nationals who will work in a Specialty Occupation
(Profession), Spouses and Children under the age of twenty-one (21). It is called
an "Australian H-1B".

EB-5 Visa:
Green Card for investors of $1 million or $500,000 in a "Pilot Program".

F-1 Visa:
Academic Student.

F-2 Visa:
Spouses and Children under the age of twenty-one (21).

G-1 Visa:
Principal Resident Representative of Recognized Foreign Government to International
Organization, Staff, or Immediate Family.

G-2 Visa:
Other Representative of Recognized Foreign Member Government to International
Organization, or Immediate Family.

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G-3 Visa:
Representative of No Recognized Non-member Foreign Government to International
Organization, or Immediate Family.

G-4 Visa:
International Organization Officer or Employee, or Immediate Family.

G-5 Visa:
Attendant, Servant, or Personal Employee of G-1 through G-4 or Immediate Family.

H-1B1 Visa:
Professionals who come temporarily to the U.S. to perform a specialty occupation.

H-1B2 Visa:
Aliens who come temporarily to the U.S. to perform cooperative research
and development projects.

H-1B3 Visa:
Aliens who come temporarily to the U.S. as a fashion model.

H-1C Visa:
Nurse coming to areas of health professional shortage.

H-2A Visa:
Aliens who come to the U.S. to perform agricultural labour or services of temporary or
seasonal nature.

H-2B Visa:
Aliens who come to the U.S. not to perform agricultural labour or services but to
perform work in temporary nature.

H-2R Visa:
Special type of H-2B visa which was temporarily provided as a way to bypass the
quotas for the H-2B for individuals who had been previously issued H-2B status
(enacted in the Emergency Supplemental Appropriations Act for Defence, the Global
War on Terror, and Tsunami Relief, 2005, P.L. 109-13, 119 Stat. 231, signed into law
by the President on May 11, 2005).

H-3 Visa:
Aliens who come to the U.S. to participate in a training program.

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H-4 Visa:
Spouses and children under the age of twenty-one (21).

I Visa:
Representative of Foreign Information Media, Spouses and Child.

J-1 Visa:
Exchange Visitor.

J-2 Visa:
Exchange Visitor.

K-1 Visa:
Fiance(e) of United States Citizen.

K-2 Visa:
Minor Child of Fiance(e) of U.S. Citizen.

K-3 Visa:
Spouses of a U.S. Citizen under LIFE Act.

K-4 Visa:
Children of K-3 under LIFE Act.

L-1A Visa:
Intracompany Transferee (Executive, Managerial) Continuing Employment with
International Firm or Corporation.

L-1B Visa:
Intracompany Transferee (Specialized Knowledge Personnel) Continuing Employment
with International Firm or Corporation.

L-2 Visa:
Spouses and Children under the age of twenty-one (21).

M-1 Visa:
Vocational Student or Other Non-academic Student.

M-2 Visa:

Page | 16
Spouses and Children under the age of twenty-one (21).

N-8 Visa:
Parent of an Alien Classified SK-3 Special Immigrant.

N-9 Visa:
Children under the age of twenty-one (21) of N-8 or of an SK-1, SK-2, or SK-4
Special Immigrant.

NATO-1 Visa:
Principal Permanent Representative of Member State to NATO (including any of its
Subsidiary Bodies) Resident in the U.S. and Resident Members of Official Staff;
Secretary General, Assistant Secretary General, and Executive Secretary of NATO;
Other Permanent NATO Officials of Similar Rank, or Immediate Family.

NATO-2 Visa:
Other Representative of member state to NATO (including any of Subsidiary Bodies)
including Representatives, its Advisers and Technical Experts of Delegations, Members
of Immediate Art. 3, 4 UST 1796 Family; Dependents of Member of a Force Entering
in Accordance with the Provisions Status-of-Forces Agreement or in Accordance with
the provisions of the Protocol on the Status of International Military Headquarters;
Members of Such a Force if Issued Visas.

NATO-3 Visa:
Official Clerical Staff Accompanying Representative of Member State to
NATO (including any of its Subsidiary Bodies) or Immediate Family.

NATO-4 Visa:
Official of NATO (Other Than Those Classifiable as NATO- 1) or Immediate Family.

NATO-5 Visa:
Expert, Other Than NATO Officials Classifiable Under the NATO-4, Employed
in Missions on Behalf of NATO, and their Dependents.

NATO-6 Visa:
Member of a Civilian Component Accompanying a Force Entering in Accordance
with the Provisions of the NATO Status-of- Forces Agreement; Member of a Civilian
Component Attached to or Employed by an Allied Headquarters Under the Protocol
on the Status of International Military Headquarters Set Up Pursuant to the North
Atlantic Treaty; and their Dependents.

Page | 17
NATO-7 Visa:
Attendant, Servant, or Personal Employee of NATO-1, NATO-2, NATO-3, NATO-
4, NATO-5, and NATO-6 Classes, or Immediate Family.

O-1A Visa:
Aliens possessing extraordinary abilities in the sciences, arts, education, business, or
athletics.

O-1B Visa:
Aliens of extraordinary ability in the arts or extraordinary achievement in the
motion picture or television industry.

O-2 Visa:
Accompanying Alien.

O-3 Visa:
Spouses or Children under the age of twenty-one (21).

P-1 Visa:
Athletes, Entertainment Groups and Support Personnel.

P-2 Visa:
Artistic Exchange (reciprocal exchange program).

P-3 Visa:
Artistic Exchange (culturally unique program).

P-4 Visa:
Spouses and Children under the age of twenty-one (21).

Q-1 Visa:
Participant in an International Cultural Exchange Program.

Q-2 Visa:
Irish Peace Process Cultural and Training Program (Walsh Visas).

Q-3 Visa:
Spouses and children under the age of twenty-one (21).

Page | 18
R-1 Visa:
Aliens in a religious occupation.

R-2 Visa:
Spouses or Children under the age of twenty-one (21).

S-5 Visa:
Certain Aliens Supplying Critical Information Relating to a Criminal Organization or
Enterprise.

S-6 Visa:
Certain Aliens Supplying Critical Information Relating to Terrorism.

S-7 Visa:
Qualified Family Member of S-5 or S-6.

T-1 Visa:
Victim of a severe form of trafficking in persons.

T-2 Visa:
Spouse of a victim of a severe form of trafficking in persons.

T-3 Visa:
Child of victim of a severe form of trafficking in persons.

T-4 Visa:
Parent of victim of a severe form of trafficking in persons (if T-1 victim if under
twenty- one (21) years of age).

TN Visa:
Professional Workers under NAFTA.

TD Visa:
Spouses and children under the age of twenty-one (21).

TWOV Visa:
Transit Without Visa Program (Passenger and Crew) SUSPENDED: this program was
SUSPENDED at 11:00 a.m., Saturday August 2, 2003 (EST).

U-1 Visa:

Page | 19
Victim of Certain Criminal Activity.

U-2 Visa:
Spouse of U-1.

U-3 Visa:
Child of U-1.

U-4 Visa:
Parent of U-1, if U-1 is under the age of twenty-one (21).

V-1 Visa:
Spouse of an LPR who is the principal beneficiary of a family-based petition (Form I-
130) which was filed prior to December 21, 2000, and has been pending for at least
three years.

V-2 Visa:
Child of an LPR who is the principal beneficiary of a family-based visa petition (Form
I- 130) that was filed prior to December 21, 2000, and has been pending for at least
three years.

V-3 Visa:
The derivative children of a V-1 or V-2.

TPS Visa:
Temporary Protected Status.

US Citizenship
“All persons born or naturalized in the United States, and subject to the jurisdiction
thereof, are citizens of the United States and of the state wherein there reside. No state
shall make or enforce any law which shall abridge the privileges or immunities of
citizens of the United States; nor shall any state deprive any person of life, liberty, or
property, without due process of law; nor deny to any person within its jurisdiction the
equal protection of the laws.” - XIV Amendment to the U.S. Constitution.

-Citizenship of children by birth

In the United States, nationality of children can derive from place of birth (i.e. jus
soli) or ethnicity:
- Birth in the U.S.: all persons born in the U.S. are U.S. citizens regardless of the
status of their parents (except for children of diplomats)

Page | 20
- Acquisition at birth: a child born outside the U.S. may be granted U.S. citizenship
if one or both parents are U.S. citizen residents
- Derivation through naturalization of Parents: In 2000, Congress passed the Child
Citizenship Act (CCA) permitting any child under the age of eighteen (18) who is
adopted by a U.S. Citizen and immigrates to the United States to be granted
immediate citizenship.

-Naturalization
Naturalization: Process by which U.S. citizenship is conferred upon a foreign
national after complying with the requirements established by Congress in the
Immigration and Nationality Act (INA).

What are the requirements for administrative naturalization?

- Be a lawful permanent resident
- Be eighteen (18) years of age or older
- Residence and physical presence: reside continuously in the U.S. for at least five
years (or three years for permanent residence obtained through marriage to a U.S.
citizen) prior to filing
- Be capable to speak, read and write in English
- A knowledge and understanding of the fundamentals of the U.S. History as well as
the principles and form of the U.S. government
- Attachment to the principles of U.S. Constitution
- Good moral character (alien showing he/she has never been convicted of murder or
aggravated felony for five years or three years for an applicant married to a U.S.
citizen or one (1) year for an applicant serving in the U.S. Armed Forces prior filing)
- Oath of Allegiance: an applicant shall swear to:
Support the Constitution and obey the laws of the United States

Renounce any foreign allegiance and/or foreign title

Bear arms for the U.S. Armed Forces or perform services for the U.S. government when
necessary.

After acquiring U.S. Citizenship, you are granted the following rights:
- The right to obtain a U.S. passport
- The right to vote in the U.S. elections
- The right to participate in federal programs like Social Security
- The right to qualify for some security clearances.

Page | 21
Green Card
The Lawful Permanent Residence (“Green Card”) allows an immigrant, i.e. a foreign
national, to live and work permanently in the United States.
A multi-step procedure
To become an immigrant, you must go through a multi-step process:
- An immigrant petition filed either by a relative or an employer must be approved
by the USCIS (U.S. Citizenship and Immigration Services).

How to become an immigrant through a

relative? Preference Categories:
Foreign nationals who want to become immigrants are classified into categories based
on a preference system. Regarding the immediate relatives of U.S. citizens, i.e.
spouses, parents, and unmarried children under the age of twenty-one (21), an
immigrant visa number will become immediately available.
However, the relatives in the remaining categories must wait for an immigrant visa
number to become available according to the following preferences:
- First preference: Unmarried sons and daughters (twenty-one (21) years old or older) of
U.S. citizens.
- Second Preference: Spouses of lawful permanent residents, their unmarried
children (under twenty-one), and the unmarried sons and daughters of lawful
permanent residents.
- Third Preference: Married sons and daughters of U.S. Citizens.
- Fourth Preference: Brothers and sisters of adult U.S. Citizens.
Once the immigrant visa number is available, he/she may adjust status if in the U.S.
1) If the sponsor is a U.S. Citizen, he or she may petition for:
- Parent (immediate relative category)
- Husband or wife (immediate relative category)
- Unmarried child under 21(immediate relative category)
- Unmarried son or daughter over 21
- Married son or daughter of any age
- Brother or sister, if the sponsor is at least twenty-one (21) years old.
2) If the sponsor is a lawful permanent resident, he or she may petition for:
- Husband or wife
- Unmarried son or daughter of any age.
How to become an immigrant through employment?
Five categories based upon employment allow foreign nationals to be granted lawful
permanent residence.

EB-1: Priority Workers: Extraordinary Ability or Managers and Executives transferred

to the U.S. branch:

Page | 22
- Aliens who possess extraordinary abilities (nationally or internationally recognized)
in the sciences, arts, education, business, or athletics
- Aliens who are managers or executives of a U.S. branch
- Aliens who are exceptional researchers or professors.

EB-2: Professionals with advanced degrees or persons with exceptional abilities:

- Aliens "who because of their exceptional ability in the sciences, arts, or business
and who are advanced will substantially benefit the national economy, cultural, or
educational interests or welfare of the United States."
- Aliens who have advanced degrees.

EB-3: Professional, Skilled and Unskilled Workers:

- Professionals with a baccalaureate degree
- Skilled workers with at least two (2) years of experience
- Others workers with less than two (2) years of experience.

EB-4: Special Immigrants:

- Priest of a religious denomination
- Religious workers.

EB-5: Investors:
Pursuant to the section 203(b)(5) of the Immigration and Nationality Act (INA), 8
U.S.C. § 1153(B)(5), ten thousand (10,000) immigrant visas are granted annually to
qualified persons who are engaged in a new commercial company. Five thousand
(5,000) visas out of the ten thousand (10,000) visas are granted to persons who apply
under a pilot program involving a designed “Regional Centre”.

Page | 23
Immediate Relative & Family Sponsored Visa Category
Spouse of a U.S. Citizen IR1, CR1
Spouse of a U.S. Citizen awaiting approval of an I-130
immigrant petition K-3 *
Fiancé(e) to marry U.S. Citizen & live in U.S. K-1 *
Intercountry Adoption of Orphan Children by U.S. Citizens IR3, IH3, IR4, IH4
IR2, CR2, IR5, F1,
Certain Family Members of U.S. Citizens F3, F4
Certain Family Members of Lawful Permanent Residents F2A, F2B
Employer Sponsored – Employment
Employment-Based Immigrants, including their preference
group number (in square brackets):
Priority workers [First]
Professionals Holding Advanced Degrees and Persons of E1
Exceptional Ability [Second] E2
Professionals and Other Workers [Third] E3, EW
Certain Special Immigrants: [Fourth] SD, SR, SE, SQ, SI
Employment Creation/Investors [Fifth] T5, C5
Religious Workers SD, SR
Iraqi and Afghan Translators/Interpreters SI
Iraqis Who Worked for/on Behalf of the U.S. Government SQ
Afghans Who Worked for/on Behalf of the U.S. Government SQ
Other Immigrants
Diversity Immigrant Visa DV
Returning Resident SB

Page | 24
Employment
Authorization
Document (EAD)
Codes
EAD, or employment authorization document, is a document issued by USCIS that
allows people who already hold a US visa to work legally in the US. The H-1B visa
allows a highly qualified individual who holds a job offer from a US company to live
and work in the US.
Agencies verifying eligibility of applicants for benefits are frequently presented
with an I-766 Employment Authorization Document (EAD). To assist agencies in
determining the applicant’s eligibility, the following chart contains many of the
EAD category codes and the provisions of the federal regulations to which they
refer. The category code, found on the face of the EAD (see image, below), refers to
the section of 8 CFR 274a.12 that is the basis for issuing the EAD. For example, the
alien classification code “A03” refers to 8 CFR 274a.12(a)(3), which addresses
refugees. The EAD Code Definition provides information regarding what categories
of aliens or classes of admission (COA) fall under the particular EAD code. Please
also refer to the document entitled “Class of Admission (COA) Tables” located in
online resources for additional information about categories of aliens.

Page | 25
 I-766, Employment Authorization Document (EAD)

EAD Code EAD Code Definition

A02 A lawful temporary resident pursuant to sections 245A
or 210 of the INA
A03 Refugee
A04 Paroled as refugee
A05 Asylee (granted asylum)
A06  K-1 nonimmigrant fiancé(e) of U.S. citizen (USC)
 K-2 child of K-1
A07  N-8 Parent of international organization employee
granted permanent residence
 N-9 Dependent Child of international organization
employee granted permanent residence
A08 Citizen of Micronesia, the Marshall Islands or Palau
admitted as a
nonimmigrant
A09  K-3 nonimmigrant spouse of USC
 K-4 child of K-3
A10 Granted Withholding of Deportation or Removal

A11 Deferred Enforced Departure (DED)

A12 Temporary Protected Status (TPS) granted under 8 CFR
244.12
A13 IMMACT Family Unity beneficiary
(Section 301 of the Immigration Act of 1990)
A14 LIFE Act Family Unity beneficiary
(Section 1504 of the Legal Immigrant Family Equity
(LIFE) Act Amendments)

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A15  V-1 Spouse of Lawful Permanent Resident
 V-2 Minor unmarried child of Lawful Permanent
Resident
 V-3 Minor unmarried child of V-1 or V-2
A16 T-1 nonimmigrant (victims of severe form of trafficking)
A17  Spouse of E-1/E-2 Treaty Trader/Investor
 Spouse of E-3 specialty occupation
professional from Australia
A18 L-2 spouse of an L-1 intracompany transfer (L-1:
Individuals in the
U.S. who have been transferred from a subsidiary,
affiliate, or branch office overseas to the U.S. to
work in an executive, managerial or specialized
knowledge capacity
A19 U-1 nonimmigrant (victims of certain criminal activity)
A20  U-2 spouse of U-1 aliens
 U-3 children of U-1 aliens
 U-4 parents of minor U-1 aliens (16 or under)
 U-5 unmarried sibling under age 18 of U-1 alien under
age 21
C01 Dependent of A-1 or A-2 foreign government official
C02 Dependent of TECRO (Taipei Economic and
Cultural Representative Office) E-1
nonimmigrant
C03A Pre-completion OPT F-1 students
C03B Post-completion OPT F-1 students
C03C 17 month extension for Science, Technology,
Engineering, or Mathematics (STEM) OPT students
C03(ii) F-1 student offered off-campus employment
under the Sponsorship of Qualifying
International Organization
C03(iii) F-1 student seeking off-campus employment due
to severe economic hardship
C04 Spouse or unmarried dependent child of G-1, G-3 or
G-4 nonimmigrant (Representative of International
Organization and
their dependents)
C05 J-2 spouse or minor child of a J-1 exchange visitor
C06 M-1 student seeking practical training after completing
studies
C07 Dependent of NATO-1 through NATO-7 nonimmigrant
C08 Asylum applicant (w/ pending asylum application)
who filed for asylum on or after January 4, 1995
C09 Adjustment of status applicant
C10  Nicaraguan Adjustment and Central American Relief
Act (NACARA) section 203 applicants Applicant for
suspension of deportation
 Applicant for cancellation of removal

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C11 An alien paroled into the United States in the public
interest or temporarily for emergency reasons
C12 Spouse of an E-2 Commonwealth of the Northern
Mariana Islands (CNMI) investor; eligible for
employment in the CNMI only
C14 Alien granted deferred action
C16 Registry applicant based on continuous residence since
January 1, 1972
C17(i) B-1 nonimmigrant who is the personal or domestic
servant of a nonimmigrant employer
C17(ii) B-1 nonimmigrant domestic servant of a U.S. citizen
C17(iii) B-1 nonimmigrant employed by foreign airline
C18 Alien with a final order of deportation/order of
supervision;
C19 Temporary Protected Status applicant under 8 CFR 244.5
C20 Alien who has filed a completed legalization application
for special agricultural workers
C22 Alien who has filed a completed legalization application
under INA 245A
C24 LIFE legalization applicant
C25  T-2 spouse of T-1, victim of trafficking
 T-3 child of T-1
 T-4 parent of T-1 (if T-1 is under age 21)
C31  Principal beneficiary of an approved VAWA self-
petition
 Qualified child of a beneficiary of an approved
VAWA self- petition
C33  An alien who has been granted Deferred Action for
Childhood Arrivals (DACA)

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Student Visa - F1 / CPT /
OPT
What is an F1 visa?

An F1 visa is a nonimmigrant visa for those wishing to study in the U.S. You must file an
F1 visa application if you plan on entering the US to attend a university or college, high
school, private elementary school, seminary, conservatory, language training program, or
other academic institution.

There are a few exceptions, but in general anyone who intends to stay in the USA to
study or live must obtain either a temporary or immigrant visa by the US Department of
State. If you wish to study in the USA, you will most typically be issued a non-
immigrant visa called an F1 (F2 for dependents) and can choose to attend one school
types that are listed above.

How Do You Get an F1 Visa?

The F1 visa process is relatively simple but can be time consuming, so it’s important to
start this process as soon as possible to ensure that any delays won’t affect your
education. Perhaps one of the lengthiest steps towards becoming an international student
can be applying to a US school that has been approved by the Student and Exchange
Visitor Program (SEVP). It’s also important to keep in mind that while there are many
great institutions across the country, not all are equipped to handle
international students and the administration that is required, so it’s important to verify that
the school you would like to attend is approved well before filling out any applications,
writing any essays or providing references.

After receiving acceptance by the school of your choice, you will be officially enrolled into
the SEVP and are required to pay a one-time application fee. After all fees are
paid and your account is in good standing, what is called an “I-20” form will be provided
by your institution or educational program. This form will allow you to schedule an
interview appointment with a local US embassy or consulate to be granted an F1 visa and
officially become an international student!

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F1 Visa Qualifications
Specific instructions for how to apply for your F1 visa will be listed on the website of the
US embassy or consulate that you plan on visiting, but regardless of where your visa
appointment may take place you will need to provide the same kind of documents and
address the same kinds of questions.

In order to qualify and as part of the F1 visa interview process, potential international
students will need to prove the following:

Official Residency in a Foreign Country and Intentions to Return Home

Upon graduation it’s imperative that the international student plans on returning back to
their home country. If an interviewer can tell that your intentions are to become a
permanent resident of the United States, your visa will more than likely be denied. The
intention a student visas is to further educate yourself and then bring your newfound
knowledge back to your country of citizenship, not to remain in the US.
Admission to an Approved School
During your interview it is also imperative that you can prove acceptance by a US
institution or language school previously approved by the SEVP.
Sufficient Financial Support
F1 visa holders must be equipped to cover their living and study expenses while in the US,
as legal employment opportunities will be limited.
Ties to Your Home Country
Another important part of an F1 visa interview is proving strong ties to your home
country, including family, job offers, bank accounts or other assets.
Working on an F1 Visa
Keep in mind that dependents of an F-1 visa holder - those with an F-2 visa - are not
eligible for employment.
It’s essential to remember that F1 visas are intended for full-time students and are not
designed as work visas. With this in mind, international students are typically able to
work 20 hours a week on campus when school is in session and full-time while school is
in recess, but you may need to seek approval from the Department of Homeland Security
and the International Office at your school first. Working illegally while on an F1 visa is a
serious violation of the regulations, and could result in deportation.

Additionally, F1 visa holders are eligible to apply for permission to work off campus for
up to 12 months. This permission is called Optional Practical Training (OPT) and allows
F1 students to train, and thus work, in a field that is related to their field of

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study. For more information, be sure to contact an international student advisor at your
school, but OPT is traditionally used in the following situations:

 part-time work during the F-1 student’s studies,

 full-time work during periods of recess, or
 after graduation in a field related to the program of study.

Transferring Schools with an F1 Visa: Students on an F1 visa are required to study at

the academic institution through which their visa application was filed and granted.
However, in some situations international students are able to transfer institutions if the
student completes or leaves their current program with confirmed plans to study at a
different US institution the following academic semester.
Returning Home: Students are not required to immediately return home upon
completion of their program on an F1 visa. Instead, F-1 visa holders can remain in the US
for up to 60 days after completing their academic program or OPT training. Any students
wishing to remain in the States after their program must change their visa status, re-enrol
in a higher program, or have the option to transfer to a new school and receive new visa
documents.

If you have any questions about the visa process, an academic advisor at your school can
often be a great resource. In terms of ensuring you have adequate health insurance for
your studies in the United States, be sure to contact us for plan suggestions and guidance.

Curricular Practical Training (CPT) for F-1 Students

 Overview
 Types of CPT
 Part-Time vs. Full-Time CPT
 Eligibility Criteria
 CPT During Final Term
 Documentation Needed to Apply
 Detailed Training Description
 How to Apply for CPT
 U.S. Department of Homeland Security Address Notification Requirement
 CPT and Unpaid Internships
 CPT Online Certification Course

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Overview
If you wish to accept employment off-campus, you should pursue Curricular Practical
Training (CPT). CPT is defined as employment which is an integral part of an established
curriculum, including: “alternate work/study, internship, cooperative education, or any other
type of required internship or practicum which is offered by sponsoring employers through
cooperative agreements with the school.” Source: [8 CFR 214.2(f)(10)(i)]. CPT is available
only prior to the completion of your degree program and you must have a job offer at the time
of application. CPT employment may not delay completion of the academic program.
Students must maintain full-time enrolment during fall and winter CPT. Full-time enrolment
is 12 credit hours for undergraduate students, 8 credit hours for graduate students and 6
credit hours for Graduate Student Instructors and Graduate Student Research Assistants.
Please note that Rackham 998 course is only 1 credit hour and is NOT an equivalent of
full-time enrolment.
The full-time enrolment requirement means that most students have to limit their CPT during
the academic year to local jobs or to working for their employer remotely, usually on a part-
time basis. There are some exceptions, notably PhD students who have completed all their
coursework and are now registered for dissertation/research hours only. However, such
exceptions are rare. Although full-time CPT is allowed during the fall and winter semesters,
the full-time enrolment requirement makes employment outside of the Ann Arbour area
highly impractical in most situations.
Types of CPT
There are two types of CPT: required and optional. Required CPT is when the academic
program mandates practical work experience for all students in order to graduate. Optional
CPT is work experience directly related to your field of study that is not required.

Requirements for Non-Required CPT

You must be enrolled in a CPT course. Designated CPT course are set up and approved by
the U-M Office of the Registrar. See the list of List of Required Internships and CPT Courses
for Optional Internships.
Notes regarding CPT course enrolment:
If your CPT employment takes place during winter or fall term, you must be registered for the
CPT course during that term.
If your CPT employment takes place during the spring/summer term, you may register
either in the preceding winter term or during the spring/summer term.

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If your CPT employment takes place in both winter term and the following spring/summer
term, you must register for the CPT course for both winter and spring/summer terms.
Be aware that adding a CPT course may have an impact on your tuition and fees. Failure
to complete the CPT course will result in your falling out of legal F-1 status. You must
have declared a major.
Students who are engaged in thesis/dissertation work and have finished their coursework are
still eligible for CPT, only if the CPT is an integral part of their thesis/dissertation or research.
Students are expected to maintain physical presence on campus during fall and winter
terms.

Part-Time vs. Full-Time CPT

Part-time CPT: Employment for 20 hours or less per week is considered part-time. You
must be simultaneously enrolled in classes full-time and be physically present on campus in
order to maintain lawful F-1 status during fall and winter terms.
Full-time CPT: Employment for more than 20 hours per week is full-time. Please be aware
that 12 months or more of full-time CPT will eliminate your eligibility for Optional Practical
Training (OPT). During fall and winter terms, you must be enrolled full-time or have an
approved Reduced Course Load (RCL).
Eligibility Criteria
To be eligible for CPT, you must: Have been lawfully enrolled on a full-time basis for one
academic year (i.e. two full consecutive terms) unless your academic program requires
immediate participation for all students.
 Be in lawful F-1 status
 Have U-M approved health insurance
 Have a job offer
 Not be enrolled in an intensive English language training program
NOTE: CPT is processed and authorized term by term. Contact your academic department
regarding your department's specific guidelines and follow those guidelines for CPT
applications. Please note that your department has discretion in recommending CPT.

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CPT During Final Term
During your final term of study, you must be enrolled at the University of Michigan and
physically present on campus in Ann Arbor in order to comply with F-1 requirements. If you
are enrolled part-time because you do not need a full course load to complete your remaining
degree requirements, you must receive Reduced Course Load (RCL)& authorization from
the International Centre.
If you are in compliance with these enrolment and physical presence requirements, then you
may pursue CPT during your final term of study. Please note that the latest possible end date
for CPT authorization during the final term of study is the last day of classes (before Study
Days and Examinations), as listed on the official U-M Academic Calendar.
Documentation Needed to Apply
 CPT Authorization Request Form
 CPT Online Workshop Completion Email
 Academic/Faculty Advisor Recommendation Form for CPT
 If you are a Graduate Student (Master’s and PhD non-candidates) taking Rackham
998, your advisor must complete Part 1 and Part 2.
 If you are a PhD Candidate, your advisor must complete Part 1 and Part 3. Additionally,
your advisor must write an official letter recommending you for CPT and detail how the
work is integral to your dissertation research.
 Detailed training description from your company/employer meeting all criteria outlined
below
 Photocopy of your current I-20
 Print out of your current I-94 or photocopy of paper I-94
 Print out of your unofficial transcript from Wolverine Access showing CPT course
enrolment
 Please ensure all documents are complete- the IC will not accept invalid or incomplete
CPT applications.
Detailed Training Description
Your employer or company must officially offer you a training opportunity. Ask your
employer to write a Detailed Training Description. It must:
 Be written on the company's letterhead
 Be addressed to you
 Include job title
 Provide a detailed job description (at least a few sentences describing specific duties,
tasks, goals, etc.)

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 Specify the street address where employment will take place (street, city, state, and zip
code). If you will work remotely, the letter should specify this and list the company’s
physical address.
 Specify number of hours per week you will work
 Specify start and end dates of CPT employment (keep in mind that CPT can only be
authorized one term at a time).
 A standard job offer letter may not contain the required information. We recommend your
employer uses this sample Detailed Training Description. Please ensure your Detailed
Training Description contains all details. If your current offer letter is missing only 1 or 2
details, we may accept one printed e-mail, addressed to you, directly from your employer
containing the missing details.
How to Apply for CPT
Plan head. CPT authorization takes 1-2 weeks for the IC to process and requires several
documents that may take you time to compile.
Take the CPT Online Certification Course and print your CPT Online Workshop Completion
Email
Speak with your company/employer and obtain a Detailed Training Description
Meet with your Academic or Faculty Advisor to discuss your CPT plans in detail. Show your
advisor the Detailed Training Description, if they believe the training is integral to your
curriculum, they may recommend you for CPT by completing the Academic/Faculty Advisor
Recommendation Form. Your advisor may also help you enroll in a Registrar Designated CPT
course (if applicable).
Gather all required documentation. You may submit your CPT I-20 Request at the IC front
desk (if you have NO questions). You must bring all required documents. The IC will not
accept invalid or incomplete CPT applications.
An International Student and Scholar Advisor will review your CPT application. If all
requirements are met, the advisor will approve your CPT and create a CPT I-20 showing
this approval. Normal processing time is 1-2 weeks. Expect processing time to be 2 full
weeks during peak request times such as April, September and January.
You will receive an e-mail once your CPT I-20 is ready. No work, paid or unpaid, may take
place until your CPT I-20 is printed.
Be sure to sign and date your CPT I-20 and keep all I-20s permanently in your personal files.

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U.S. Department of Homeland Security Address Notification Requirement
You are required to update your address in Wolverine Access within 10 days of any
change while you are in F-1 status.
CPT and Unpaid Internships
It is not uncommon for students to confuse unpaid internships with volunteering (and
therefore conclude that no work authorization is necessary for engaging in an unpaid
internship). However, there is a difference between volunteering and engaging in an unpaid
internship. Volunteering refers to donating time with an organization whose primary purpose
is charitable or humanitarian in nature, without remuneration or any other type of
compensation. For more information about volunteering please see “Employment vs.
Volunteering” section on the IC web site. Internships, both paid and unpaid, are primarily
offered by the private sector and related to the intern’s major field of study. The
U.S. Department of Labour has guidelines for those seeking an unpaid internship:
https://www.dol.gov/whd/regs/compliance/whdfs71.htm
The following six criteria must be met for an internship to be considered a legitimate unpaid
internship (and not employment below minimum wage, in violation of Department of
Labour laws):
 The internship, even though it includes actual operation on the facilities of the
employer, is similar to training which would be given in an educational environment;
 The internship experience is for the benefit of the intern;
 The intern does not displace regular employees, but works under close supervision of
existing staff;
 The employer that provides the training derives no immediate advantage from the
activities of the intern; and on occasion its operations may actually be impeded;
 The intern is not necessarily entitled to a job at the conclusion of the internship; and
 The employer and the intern understand that the intern is not entitled to wages for the
time spent in the internship

Do F-1 students need CPT authorization to participate in unpaid internship?

CPT authorization is strongly recommended for all unpaid internships, whether the student
does or does not need to provide employment authorization documents to the company.
The F-1 regulations are written in such a way that CPT is an authorization to do practical
training as part of the curriculum for the academic program, and as such is significant in
more ways than simply for the employer to verify employment eligibility. CPT
authorization is more than just permission to get paid.

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You should have CPT authorization for unpaid internships for the following reasons:
 CPT authorization by the university serves to demonstrate that this practical experience is
part of the curriculum.
 CPT authorization is a way of reporting in SEVIS the student's activity, employment,
and location where they are working and therefore maintaining their status.
 If ever a student is doing a job on an unpaid basis that someone would be hired and
paid for, employment authorization in the form of CPT, OPT, etc. is advised.
 If the unpaid internship at some point changes into a paid one (or if your employer
decides to compensate you for your work in any way – for example, give you a
monetary gift), you won’t be able to accept the payment if your internship was not
authorized as CPT.
 Please keep in mind that F-1 students cannot be retroactively remunerated or in any
way compensated for work done in an unpaid internship if they did not obtain work
authorization prior to when the work was performed.
Based on the above, we recommend that you apply for CPT authorization if you have an
internship offer (paid or unpaid) that meets CPT eligibility criteria.
If the position is unpaid and for some reason it is not possible for you to obtain CPT
authorization, please make sure that your prospective supervisor is aware of U.S. Department
of Labour regulations concerning unpaid internships and that you have assurances (preferably
written) to that effect before you accept the position. We also recommend that at the end of
your internship you ask your employer to provide you with a letter confirming that there was
no remuneration or any other type of compensation provided in any form during the dates you
were participating in the internship. Please keep such a letter for your permanent records.
Optional Practical Training (OPT) for F-1 Students
Optional Practical Training (OPT) is a period during which undergraduate and graduate
students with F-1 status who have completed or have been pursuing their degrees for one
academic year are permitted by the United States Citizenship and Immigration Services
(USCIS) to work for one year on a student visa towards getting practical training to
complement their education.
On April 2, 2008, the U.S. Department of Homeland Security (DHS) Secretary Michael
Chertoff announced a 17-month extension to the OPT for students in qualifying STEM
fields. To be eligible for the 12-month permit, any degree in any field of studies is valid.
For the 17-month OPT extension, a student must have received a science, technology,
engineering, or mathematics degree as listed on the USCIS website.

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On May 31, 2008, the Immigration Reform Law Institute filed a lawsuit in federal court on
behalf of various organizations and individuals challenging the validity of the 17 month OPT
extension. A similar lawsuit in November 2014 challenging the STEM extension was
successful, with the Court giving the US government up to February 12, 2016 to formulate
new rules. The deadline was subsequently extended by three months.
On March 11, 2016, the Department of Homeland Security published a final rule allowing
certain F-1 students who receive science, technology, engineering, and mathematics (STEM)
degrees, and who meet other specified requirements, to apply for a 24-month extension of
their post-completion OPT, giving STEM graduates a total of 36 months of OPT. The 24-
month extension will replace the 17-month STEM OPT extension previously available to
STEM students (see 73 FR 18944). Eligible students may begin applying for a 24-month
STEM OPT extension on May 10, 2016.
There also exists a post-completion Optional Practical Training option for students on M-1
visas, but it is significantly more restrictive than that for F-1 students. Unless otherwise
specified, Optional Practical Training is understood to refer to Optional Practical Training for
F-1 students.
Information in this section relates to standard Optional Practical Training (OPT). The
following sections describe in detail the requirements for each level of the application
process:
 Applying for Optional Practical Training
 OPT Online Workshop
 After You Have Applied for Optional Practical Training
 While You Are On Optional Practical Training
 OPT STEM Extension
 CAP GAP
The following information is a short description and general criteria to consider before
applying for OPT.
Definition
OPT is defined in the Federal Regulations as temporary employment directly related to a
student's field of study. During OPT, a student remains in F-1 status. The end result of the
OPT request process is an Employment Authorization Document (EAD) issued by United
States Citizenship and Immigrations Services (USCIS).
Eligibility Criteria
To be eligible for OPT, the student must:
Be in legal F-1 immigration status

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Be a full-time student for at least one academic year Have
U-M approved health insurance
Note: Post-completion OPT applications are typically denied by USCIS if the Level of
Education indicated in item #4 on the I-20 is “non-degree.”
Maximum Length
The standard OPT period is a cumulative maximum of 12 months.
Part-time OPT is deducted from the 12-month limit at 50%.
An F-1 may become eligible for another 12 months of OPT if he/she advances to a higher
educational level.
Some students may be eligible for an extension of their OPT based on a STEM degree.
What is the Difference Between OPT and CPT?
One of the most commonly asked questions by international students is, Can I Work in the
USA While Studying? Fortunately, the answer is yes, but with some limitations.
International students are allowed to work off-campus after completing their first
academic year through specific programs. Two of those programs are Optional
Practical Training and Curricular Practical Training.

Optional Practical Training (OPT)

Optional Practical Training (OPT) is a program that temporarily allows international

students with an F-1 visa in the United States to work up to 12 months in relation to their
major of study. F-1 visa students are eligible for OPT after completing their first
academic year. OPT can be completed both before or after completing your studies, but
it’s important to remember that you are only allowed to work 12 months total.

International students with an F-1 visa who have completed degrees in certain science,
technology, engineering and mathematics (STEM) are eligible for a 17-month extension
for post-graduation completion of OPT employment. Beginning May 10th, 2016 students
may apply for a 24-month extension of their post-graduation OPT employment. This will
replace the 17-month extension.

Curricular Practical Training (CPT)

Curricular Practical Training (CPT) is a program that temporarily allows international

students with an F-1 visa to gain practical experience directly related to their major
through employment, paid or unpaid internships, or cooperative (co-op) education. It must
be part of an established curriculum. CPT must be completed before graduating. In
addition, CPT can be part-time (20 hours or less a week) or full time (20 hours or

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more a week). Although, if you work full-time for 12 months in CPT, you will lose
your eligibility for OPT.

1. What’s the Difference Between OPT and CPT?

The major difference between OPT and CPT is the time period in which you are eligible
for these programs and the type of work allowed in each program. OPT can be completed
before or after graduation, while CPT must be completed before graduation. CPT
employment is part of your major curriculum that allows students to work in a paid or
unpaid internship, practicum, or cooperative (co-op) education program. CPT must be
required by your major and if it not, you must receive course credit. Only certain
employers participate in CPT. Alternately, OPT is not employer specific and allows work,
not an internship or co-op, and you do not need to earn course credit.

Curricular Practical Training (CPT)

 Curricular Practical Training (CPT) is a program that temporarily allows

international students with an F-1 visa to gain practical experience directly
related to their major through employment, paid or unpaid internships, or
cooperative (co-op) education.
 It must be part of an established curriculum. CPT must be completed before
graduating.
 In addition, CPT can be part-time (20 hours or less a week) or full time (20
hours or more a week). Although, if you work full-time for 12 months in CPT,
you will lose your eligibility for OPT.

Optional Practical Training (OPT)

 Optional Practical Training (OPT) is a program that temporarily allows

international students with an F-1 visa in the United States to work up to 12
months in relation to their major of study.
 F-1 visa students are eligible for OPT after completing their first academic year.
OPT can be completed both before or after completing your studies, but it’s
important to remember that you are only allowed to work 12 months total.
 International students with an F-1 visa who have completed degrees in certain
science, technology, engineering and mathematics (STEM) are eligible for a 24-
month extension (total 36-months) for post-graduation completion of OPT
employment.

2. What’s the Difference Between OPT and CPT?

The major difference between OPT and CPT is the time period in which you are eligible
for these programs and the type of work allowed in each program. OPT can be

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completed before or after graduation, while CPT must be completed before graduation.
CPT employment is part of your major curriculum that allows students to work in a paid
or unpaid internship, practicum, or cooperative (co-op) education program. CPT must be
required by your major and if it not, you must receive course credit. Only certain
employers participate in CPT. Alternately, OPT is not employer specific and allows
work, not an internship or co-op, and you do not need to earn course credit.

3. Difference Between OPT and CPT

International students on F-1 visa have two options to work in the US. They are:

 Optional Practical Training (OPT)

 Curricular Practical Training (CPT)

However, there are some differences between OPT and CPT, which a student on F1 visa
must know before getting started.

Optional Practical Training (OPT) Vs Curricular Practical Training (CPT)

Optional Practical Training (OPT) Curricular Practical Training (CPT)

OPT is a temporary authorization offered CPT is a temporary work authorization
to students on F-1 visa to work on their provided to the students on F-1 visa,
related field for a period of total 12 which is directly related to their majors
months. for period of total 12 months.

OPT Eligibility Requirement: The CPT Eligibility Requirement: If the

students must have been pursuing their students complete their full-time CPT for
course full-time for at least one full a period of 12 months then they would be
academic year. no longer eligible for OPT. Besides, the
students must have been enrolled full
time for at least one academic year.

OPT in order to receive OPT CPT: While applying for CPT, students
authorization, students do not require any require a job or employment offer.
employment or job offer.
OPT program has two variants— Pre- CPT is for total 12 months and it can be
completion OPT and Post-completion either full-time or part time.
OPT. Students can pursue OPT while

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there still on their academics with Pre-
completion OPT. And, with Post-
completion OPT students can start their
OPT after their graduation.
Students require OPT to work for a total Having CPT to work, students can be on
period of 12 months (Pre or Post job for a total period of 12 months. But,
Completion OPT). Yet, students have an students will not have option to work on
option to extend their OPT for another 17 OPT once they complete their 12 month
months with STEM OPT extension; this is CPT.
only applicable to certain majors.
With OPT, students’ employment With CPT, students’ employment
experience must be related to their majors experience must be directly related to
or field of study and it doesn’t have to be their major or field of study. Plus, it must
a part of their academic curriculum. be a part of students’ curriculum; this
implies, students’ employment experience
must offer credits in their curriculum.
OPT students can work part-time when CPT students can work part-time when
University/ college is in term; during University/College is in term; during off-
vacation students can work full-time. session, students can work full-time.
Students on OPT can work with any Students on CPT can work only with
employer across the US as long as their employers those are on Student and
OPT Jobs are related to their field of Exchange Visitor Information
study. System (SEVIS) and I-20 list.

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 MSP & VMS
What is MSP or VMS in staffing?
What is a Managed Service Provider (MSP) and Vendor Management System (VMS) in
staffing? If you work as a recruiter, contractor or hiring manager in staffing, you are
bound to come across these terms.

Defined: MSP, VMS

Managed Service Provider (MSP): An outsourced agency that interfaces between a
third-party supplier such as a staffing agency, online marketplace, or SOW supplier,
and enterprise managers searching for talent.
Vendor Management System (VMS): A software system—which is typically cloud-
based—that helps facilitate the process of contingent worker procurement and
management.

What is a Managed Service Provider (MSP)?

Businesses often turn to a third-party supplier such as a staffing agency, online
marketplace, or SOW supplier when looking for independent contractors. A Managed
Service Provider (MSP) acts as an outsourced agency that interfaces between the third-
party supplier and the client’s enterprise managers in need of talent.
With hopes of eliminating the administrative burden of finding, engaging, and managing
independent workers, many companies rely entirely on MSPs to set up and manage their
independent contractor engagement program.
MSPs are geared towards a complex supply chain for enterprises, delivering value when it
comes to reducing the cost of sales and providing compliance and consistency for
managers. But when it comes to engaging an independent contractor—a supply chain of
one—the scalability of a MSP can be a bit of a mismatch. MSPs are simply better suited to
supporting a large supply chain rather than dealing with an individual.

What is a Vendor Management System (VMS)?

A Vendor Management System (VMS) is a software system—typically cloud-based—
that helps facilitate the process of contingent worker procurement and management. A
VMS can collect requisitions from managers, automate transactions, and facilitate on
boarding. A VMS stores and collects all this data, along with metrics such as spend
tracking, candidate information, and payroll and invoicing, to help companies better
manage their workforce.

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A VMS is typically used to manage independent talent either by a company directly or by
an MSP team on behalf of their client. Whereas an MSP is backed by people and
supported by technology, a VMS refers to the technology used to engage and manage
talent. The MSP may own a VMS or the client may use their own software. Keeping
workforce data and metrics in a central, digital location helps to automate labour-
intensive tasks such as time tracking and invoicing.

A Managed Service Provider (MSP) is an outsourced agency that manages the

contingent worker program (temporary staffing) of a client company (typically a Fortune
1000 company like Coca Cola or Citibank) by managing its preferred staffing agencies. It
consists of a team of program managers and coordinators that help the client company
source and manage temporary workers from their preferred staffing agencies.

A Vendor Management System (VMS) is merely the software/website that the client
company purchases or licenses to enable the MSP to run the contingent worker program
by allowing all transactions to happen online. This involves distribution of temp
requirements (reqs) to staffing agencies, collection of candidate submissions, interview
scheduling and coordination, job offers, billing and timecards, etc.

What's the difference between MSP and VMS?

A MSP (Managed Service Provider) is a service provider which functions as an
outsourcing option for all HR activities concerning recruitment, hiring, contracting, on
boarding, off boarding, etc. A MSP continues to establish personal contacts between the
client and its workforce suppliers.
A VMS (Vendor Management System) is a web-based application that’s acts as a
mechanism for business to procure and manage Contingent Workforce. It supports
companies in structuring and optimizing all processes related to working with Contingent
Workforce. VMS is a software tool that optimizes all processes concerning sourcing,
contracting, tracking and invoicing for contingent workforce. Any company seeking to
optimize these processes can make use of a VMS. In addition, service firms such as
MSP’s, commonly make use of a VMS to focus on strategy instead of operational
handlings. Next to that, it makes the relationship between a company and its suppliers
tangible.
A VMS is a modern digital solution to tackle some common challenges regarding
contingent workforce staffing:
 Staying competitive in a rapid changing market with a need for contingent
workforce.
 Growing share of Contingent Workforce continues to increase operational
challenges related to managing these workers.
 It is increasingly complex to operate in compliance with (inter)national laws
concerning the hire of contingent workers.

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 Management of your hiring process requires an optimal and efficient working
relationship between all departments involved.
 Without a digital solution it is impossible to set up a completely neutral and
transparent system for all stakeholders.

A Vendor Management System provides you with specific benefits, which serve as
solutions to current and future needs of a complex hiring process:
 Improved Efficiency
 Streamlined End-To-End Hiring Process
 Transparency and Control
 Clear Analysis and Reporting
 Reliability and Compliancy
 Modular and Personalized Implementation

How Staffing Worked

Large Fortune 1000 companies have always hired part of their workforce as contractors
or temps. The process of bringing these temporary workers on board was very
cumbersome and inefficient. The process would typically work something like this
 A hiring manager (Sue) would get approval from her boss to hire a temp
 Sue would search for a staffing agency by calling different agencies her friends or
colleagues recommended or she found in the Yellow Pages
 Sometimes, the company may have approved suppliers
 The staffing companies would then source candidates and start sending Sue
resumes
 Sue would pick a candidate from those submitted
 If the staffing agency was new, she would sign a Master Services Agreement (MSA)
with them, and cut a Purchase Order (PO) to the new staffing vendor and contractor
could start work
 On the Sales side, staffing agency sales reps would be roaming the halls of her
company dropping of their cards, meeting potential client managers, taking them out
to lunch/golf. There was no consolidated requirement list at the company and no
way to predict who might have the next requirement- so the best way was to ‘spray
and pray’.

If the company was large, there might be hundreds of such requirements every day
making this process inefficient for the buyers and the sales people. There was also no
good way to measure the quality of service that staffing agencies were providing. It also
took a lot of effort from the client-side to manage the hundreds of staffing vendors the
big company was using.

Some of the common problems arising out of this were

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 Hiring managers being influenced and sending requirements to their favourite
staffing suppliers
 Staffing agencies that had more aggressive sales people would be knocking doors
annoying managers that have no need for staffing.
 Some staffing agencies would never hear back about candidates they proposed
 Managers would be barraged by calls from staffing agency’s recruiters requesting
meetings to discuss their requirements.
 Managers complaining that the staffing agencies did not provide candidates on time,
charging very high rates or submitting poor quality candidates- none of them backed
by any facts

Birth of Managed Services Provider (MSP) for Staffing

In the mid-90s, some of these largest companies decided to make this process more
efficient and reduce costs by outsourcing the management of this on boarding and
management of temp workers to an outsourced agency in exchange for a few percentage
points in cost. Thus the Managed Services Providers (MSPs) were born. A Managed
Services Provider is a company (not a software) that is a specialist in managing such temp
worker programs. They work for the client and act as an independent and unbiased
management interface between the client's hiring managers and the staffing vendors.
Leveraging the VMS for automated transactions, they manage the procurement process
like umpires and coaches which typically means overseeing the following activities
 Obtaining the requirements from the client managers
 Transmitting the requirements to the staffing agencies
 Ensuring the candidates are selected and on boarded
 Collecting timesheets, getting approvals, payment and paying the agencies
 Managing supplier performance with periodical scorecards
Oftentimes the MSP may conduct a joint clarification call with the manager with all the
staffing agencies listening in to enable all the staffing agencies to get the same
information from the client.

A lot of the earlier MSPs were divisions of staffing companies as they were born out of
staffing agencies that had the expertise to manage such programs. However most are
vendor-neutral these days which means they are not allowed to favour their sister or
mother companies in any way.

Client's managers input their reqs into the VMS system- which are passed on to the
staffing agencies. Clients and Staffing agencies talk with the MSP (program team) only
if they have any issues.

Vendor Management Systems (VMS)

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VMS systems are software systems (websites) that allow the MSP to run the client's
temp worker program. This may or may not belong to the MSP provider. The reason for
this is that clients look at these two things differently. MSPs are selected for their
Services and the VMS is selected for the software’s features.
A VMS system typically performs these tasks
 Interacts with the client’s HR system to pick new reqs
 Blasts these reqs out the staffing agencies
 Tracks metrics like- how many days staffing agencies take to submit candidates,
what their rejection rate is, if selected- if the candidates back out, whether the
agencies rates are in the ballpark of the agreed to rate card, etc.
 These metrics are reviewed often by the MSP and the badly performing agencies are
warned/booted out and new agencies are brought in to replace them
 The most common VMS systems these days include Tapfin’s Econometrix,
Workforce Logic, Agile- 1’s Acceleration VMS, Beeline, PrO Unlimited’s Wand
and Fieldglass’s Insite

Everything you ever wanted to know about MSPs in Staffing

What are MSPs?
Managed Service Providers or Managed Staffing Providers (MSP) are outsourced
agencies that manage the procurement of contingent workers for large companies that
spend over ~$25M in hiring contractors. MSPs program manage the process of sending
requirements to the approved staffing agencies of the company. MSPs help buying
companies with their staffing industry domain knowledge and experience from doing this
for other companies.

Why do Companies use MSPs?

Unlike the old days, many large companies have decided that some tasks are better done
when outsourced to specialists, so they can spend more time and effort on their own core
competencies. Just as they don’t want to own trucks to ship goods or hire cooks for their
cafeteria- outsourcing the hiring of contractors through staffing agencies to MSPs is
natural, especially as the legal, HR, compliance regulations, and overhead involved in
keeping abreast of all the latest changes in laws and regulations is too burdensone. MSPs
also offer other benefits like reduced cost and better insights.

What does an MSP engagement look like for a client

For a given client, the MSP is a small team consisting of a PM who oversees the program,
a few category specialists to make sure every open position is getting attention and
administrative personnel to take care of paperwork of selected contractors and payments
to staffing agencies. The MSP team uses a VMS system like Beeline to conduct all
communication.

Who selects the staffing agencies in a MSP program

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MSPs don’t select staffing vendors normally exclusively. They are usually given a list of
approved staffing agencies by the client’s category manager for contingent staffing based
on past performance, some strategic reasons or a selection of diverse vendors the client
wants to keep. MSPs can sometimes influence the client to use their own vendors that
they have had experience with or have niche skills or are diverse.

Does the MSP select the individual contractors from those submitted or is it the
hiring manager?
No. The selection of contractors is done by the client’s hiring manager. The MSP’s role is
like a gate-keeper and although they may be responsible for the quality or speed of
sourcing, screening or selecting candidates, their role is like an enforcer. They'll stay out
of the way if everything is working fine but if the program is not working well, they may
start micromanaging the process and vendors, replace staffing agencies or advise the client
on how to improve things.

Pros of MSPs
MSPs make it easy for large companies to stay compliant with labor regulations as they
distribute the cost of staying up-to-date with new regulations across many clients. MSPs
can be more knowledgeable about the staffing industry than most category managers as
they do these activities for hundreds of companies.
MSPs can benchmark and keep vendors honest as they are aware of market conditions.
MSPs can also bring the new vendors to the program that they find from other programs.
MSPs even the playing field for staffing agencies by inserting themselves between hiring
managers and staffing agencies.
MSPs can be good for pay rolling pre-identified contractors by the client for very low
mark-ups.
MSPs can reduce costs for their clients by leveraging best practices and staffing market
knowledge.

Cons of MSPs
MSPs are not directly responsible for the candidate quality, rates, candidate selection and
as such can only act as an overseer of the staffing program. If things go wrong they can
lay the fault on the client of the staffing agency or the client.
MSPs commoditize staffing agencies whose only job now is to source candidates
based on a common job description sent to multiple agencies at once. Staffing
agencies often can't provide any extra value in understanding the requirements and
often get no feedback on why their candidates are not making it. Many staffing

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agencies refuse to work with or just do the minimal amount required to stay as active
vendors.
MSP's have caused staffing agencies with low cost offshore recruiting operations to do
well. They can afford a lot more recruiters-and subcontractors- many working on
contingent basis, pay their recruiters less, scrape job boards, spam candidates as they are
less worried about CAN-SPAM, and submit candidates with minimal vetting with the
hopes of getting lucky with one of their submissions. While this is cost efficient for the
MSPs and clients, it makes the contractor candidate experience really bad as can be seen
from their comments about these staffing agencies.
MSPs can also unfairly benefit from learning about a staffing agency’s competitive
secrets including its strategy of finding candidates, quality, rates, markups. The risk
is that an MSP employee can join a staffing competitor in the program with all the
insights and what makes another competitor successful.
When MSPs take their best performing staffing vendors from one program to another they
could be doing a disservice to their client who may have groomed the staffing vendor.
Having that staffing vendor now work for their competitor decreases the advantage the
client company had.
The MSP is considered as the main vendor of the client and the staffing agency
providing the contractor is a sub vendor. In addition to being demoted and cut-off
from the actual hiring manager, staffing agencies often face trouble getting visas
approved in these situations.

What do MSPs charge?

At a typical Fortune 1000 company, the MSP charges a standard 2-5% of the Staffing
Spend. This is added to the supplier’s invoice to the client. So the client (or contractors if
you look at it another way) end up paying for the extra cost.

How profitable are MSPs?

Most MSPs are private companies or divisions of public companies so it's hard to say
exactly. MSP’s contracts with the clients are volume (cost) based and not success
(deliverable) based. Their focus is low risk-high efficiency and a small but assured margin.
This is the opposite of their competitors- BPOs or consulting companies that take on
staffing projects in an outsourced (SOW/deliverable) basis with a high risk- high
variability- high reward strategy.
For example- If a company spends $100M/year to hire 1,000 contract workers, $3M of it
goes to the MSP. The MSP will need a 5-10 member MSP team costing them ~$1M for a
$2M gross margin and a $1M net margin.

What is the future for MSPs in staffing?

MSPs are very established in companies, so they are likely to stay around in one form or
another. The structure of these MSP engagements could change very rapidly though as
staffing companies trying to become MSPs themselves. Ont he other hand large
outsourcing and consulting companies have been entering into the staffing space

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though SOWs to avoid the client's co-employment risks and allowing contractors to work
for many years without having to take an artificial break for a few months. Other threats
are Freelance Management Systems (FMS) and client companies themselves looking into
self-sourcing contractors. There is a lot of inefficiency and friction in this staffing space
still and a great model is yet to emerge. Our guess is there will be multiple models
working at the same time.

Top MSPs in Staffing

Agile-1 - Main Customers include- PGE
KellyOCG - Major customers include- Apple, Microsoft, Sony
Pontoon - Main customers include- Johnson & Johnson, Toyota, IBM, American
Express, Google
Staff Management | SMX - Major customers- Amazon, HP for warehousing
Geometric Results, Inc. (GRI) - Major customers- Apple, Ford, General Motors, Gap

Summary
VMS and MSP programs are now said to exist in 50-60% of Fortune 500 companies.
While they have been shown to increase efficiency, reduce cost and increase competition,
they are often despised by some staffing agencies who feel commoditized by the new
system. Critics say hiring managers are often on a ‘do not contact’ list for recruiters
(meaning the recruiters can’t call them to clarify or seek feedback) which reduces the
ability of a good staffing agency to find the best candidate by focusing only on speed and
cost. Supporters say everyone has the same information so the playing field is level and
the most competitive vendors are winning.

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