I wonder where do you get your data for "hire someone from India for half the cost". Of all the facts thrown around - this is easily verifiable - http://www.h1bwage.com/index.php
If you ignore those employed on hourly basis, a majority of people on H1B are paid quite well. Apart from salary and benefits - add Visa processing fees for their Kids and Spouse as well (which can easily amount to > 30k+)
I think people underestimate how fortunate US is for being top destination of good programmers (and engg. in general). US has tons of companies founded by immigrants - Tesla, Bose, Sun Microsystems, Hotmail, Yahoo to just name a few.
I agree that, something ought to be done so as Services companies (Infosys, Cognizant) have limited access to H1B visa pool and process is fairer to smaller companies.
I'm a dev manager at a prominent employer of software engineers and I did a search for my company at your link. I can't speak for other employers, but it appears that salaries for H1-Bs are ~25% lower than what I know Americans to be making at those same job titles. Half is almost certainly an exaggeration, but to deny that there's an H1-B discount is equally disingenuous.
On the topic of the essay, I worry that Paul is also being disingenuous. The US might only have 5% of the world's population, but we have a much larger percentage of the world's population where children have been exposed to computers from an early age. He's right that exceptional programmers can't really be trained, but that doesn't mean that they aren't made. They're made by being put in an environment where they can explore computing and let a natural creativity/curiosity that they have flourish. I've yet to meet an exceptional programmer that begrudgingly chose to write code for a living.
And that's my problem with the H1-B situation and why I think they've got an overall lower percentage of exceptional programmers. In the US, those who are driven by extrinsic motivators like money don't become programmers. They become salesmen, stockbrokers, lawyers or any of a host of other professions that sacrifice doing something interesting for high compensation. But most of those career paths aren't available to people in poorer countries whereas software engineering is. What I've seen among H1-Bs is a far higher percentage of people who basically hate their job, but do it because it allowed them to come to the US and afford a comfortable lifestyle for their families. I don't blame them for that, but I also don't think that it makes them particularly good developers. Don't get me wrong...I have met quite a few H1-Bs who were drawn to software development from an early age and love doing it in the way that usually results in being an nx developer (anywhere from 1x to 10x), but I just don't see them in the same proportions that I do among American developers.
If Paul can figure out a way to filter in the great developers while filtering out those that are only coming to make money, then I'd be completely behind his plan to let them all in. Somewhat ironically, his plan to let everyone in would somewhat accomplish that at the cost of decimating developer salaries (i.e. if the labor pool is increased and salaries dip accordingly, we'll find out pretty quickly who's only here for the money and which of us would be doing this no matter whether we were paid significantly less.)
> If Paul can figure out a way to filter in the great developers while filtering out those that are only coming to make money
Perhaps the ones that just want to work hard and make other people money, rather than aspire to money of their own could get a great big "I'M A SUCKER" stamp on their foreheads?
> What I've seen among H1-Bs is a far higher percentage of people who basically hate their job, but do it because it allowed them to come to the US and afford a comfortable lifestyle for their families. I don't blame them for that, but I also don't think that it makes them particularly good developers.
Most people from China, India, etc who immigrate to the U.S., Canada, and Australia/NZ are, in my observational experience, primarily focused on whatever aids the immigration process from an early age, often prompted by their parents. Their secondary focus is the backup plan of rising in the ranks of business, government, or academia in their home country. There is a significant minority of people whose primary focus is on the hierarchy at home, and choosing immigration as a secondary concern happens later on in life, often after marriage, perhaps to someone of the first group. For both groups of people, though, an interest in something geeky like technology, programming, gaming, or whatever comes a distant third. People in China who develop such consuming interests outside of work or forgo higher status jobs to do more interesting work will almost certainly miss out on some crucial step in the arduous immigration process. And of course you won't see many Chinese who totally forgo saving for a car, apartment, spouse, and child to spend all of their time on a geeky interest because their parents simply wouldn't allow it in the one-child culture here.
> If Paul can figure out a way to filter in the great developers while filtering out those that are only coming to make money
Maybe he did. They become founders. They start companies worth 100x - 1000x their annual salary. As you go up the continuum of exceptional performance a great programmer becomes a startup founder.
>If Paul can figure out a way to filter in the great developers while filtering out those that are only coming to make money, then I'd be completely behind his plan to let them all in.
You are implying that all (most) of the American programmers are exceptional. That is not the case. If you have a good team, you had to do it yourself, weed out fakes from real ones, didn't you? The onus is on the company/manager who is hiring to pick the right ones whether they are already on H1 or before company files H1 for them.
> I'm a dev manager at a prominent employer of software engineers
I find it hard to believe. In large companies HR establishes salary levels (usually bands) which are tied to titles or levels within the career ladder. Does your company negotiate each compensation package on a one-off basis?
We have bands, but they can be pretty wide...the top of the band is easily 125% of the bottom. And managers are only limited by the top of the band when extending an offer.
And some of the salaries listed on that site are below band. We also get salaries below band through acquisitions. In those cases, managers aren't really given leeway to get their salaries up to market. We've go a mostly-fixed pool of raises to apportion across our teams. Every year, that's set by executives depending on the company's performance...this past year it was ~4%. Low-level managers can recommend higher for their team, but they need good justification and, at the level of the business unit, raises cannot exceed that value.
Based on what I've seen when extending offers, whereas US citizens sometimes push back on salary or equity, H1-Bs only push back on the INS stuff (they all want EB2s). My guess is a lot of managers will low-ball their offers when they know they can give the candidate an EB2. The more you do this, the more you can increase your headcount or hire more senior developers.
If this is overwhelming behavior, Department of Labor can crack down on the company for not paying the "prevailing" wage. If the offers do tend to be around the bottom of the band, but there's also a good supply of non-immigrant employees working at the bottom of the band then yeah, the company will have an easy argument saying the prevailing wage is closer to the bottom of the band.
> Department of Labor can crack down on the company for not paying the "prevailing" wage.
That is technically true, but effectively impossible. The DoL simply does not pursue H1B abuses. They do not have the political will nor the budget to even look for them.
There is literally zero budget allocated to "prevailing wage" enforcement. That is a deliberate oversight by congress and has been that way for the 20+ years I've been observing the H1B process. To the best of my knowledge the DoL has only twice ever initiated action for H1B prevailing wage violations and in both cases it was the result of a disgruntled employee tipping them off to a series of violations that were so egregious that the political fallout of ignoring them would have gotten senior bureaucrats fired.
You might also want to read up on how classifications are gamed in order to work around even the very minor risk of prevailing wage violations.
The real problem with h1b is that it appears to be primarily used to offshore jobs to other countries. The largest users of h1b visas are firms that bring people to the US for a period of time to get trained, then have them return to their country of origin, offshoring the work (see for example http://www.businessweek.com/stories/2007-02-08/work-visas-ma...)
So, tossing H1B would be a great start at immigration reform. Instead, we should prefer immigrants with educational backgrounds in skills we need, and who have the best chance at assimilation.
It is difficult for me to not say anything disparaging about Graham's analsysis of the problem being just "a handful of consulting firms" when it is actually the primary use of H1B visas.
No, if you want to do that kind of trainee stuff you would just use L1 visas, H3 visas or even the B1 visa if it's a short period. Since H1Bs are on a lottery, and you have to tell people to wait until October anyway, hiring someone in your remote office, having them work on projects and then bringing them over 1 year later on an L1 is pretty close in costs anyway. And you guarantee that the person can come over, vs the 'chance' that H1Bs give you.
Wipro & co are general outsourcing firms themselves that american companies hire. I don't know why they use the h1b vs the L1 visa although.
> The largest users of h1b visas are firms that bring people to the US for a period of time to get trained, then have them return to their country of origin, offshoring the work
Minor detail, but if it's the same employer in both countries, they don't need to apply for H1, L1 would do the trick. It's also not subject to a cap and is much cheaper administratively.
So if companies are using H1 program for foreign employee training, that's a very inefficient practice.
The L1 visa program forbids placing the employee at a third party site as part of a labor arrangement. Thus the L1 visa is not applicable to this sort of "training." I'm sure plenty of L1 employers play fast and loose with that rule because there is essentially no formal enforcement mechanism. Nevertheless, H1B is the official visa for that sort of work.
So, tossing H1B would be a great start at immigration reform. Instead, we should prefer immigrants with educational backgrounds in skills we need, and who have the best chance at assimilation.
Isn't that basically how Canada and Australia's visa programs work?
But why expand the H1B program vs. a more open immigration policy in general, or removing H1B lock-in restrictions?
So are you claiming that companies are paying an extra 30K for all their H1B employees on top of giving them a salary that exactly matches that of their non H1B peers?
They don't pay that extra $30k per year. That's a relatively sunk cost. If you can pay a $30k premium up front, then pay that employee less over time than the US equivalent AND that employee is locked to that employer, then it's well worth that $30k upfront. Of course we are stipulating that it actually does cost $30k on average, which I haven't seen the data to support (or refute) that.
If you ignore those employed on hourly basis, a majority of people on H1B are paid quite well. Apart from salary and benefits - add Visa processing fees for their Kids and Spouse as well (which can easily amount to > 30k+)
I think people underestimate how fortunate US is for being top destination of good programmers (and engg. in general). US has tons of companies founded by immigrants - Tesla, Bose, Sun Microsystems, Hotmail, Yahoo to just name a few.
I agree that, something ought to be done so as Services companies (Infosys, Cognizant) have limited access to H1B visa pool and process is fairer to smaller companies.