We spent a ton of time and effort trying to find anyone to our standards, never able to find enough. H1B (and other work visas) were generally better and more Sr compared to locals we found. They got paid as much or more than everyone else.
When we had great people we could not get here we would instead build a team overseas, taking a bunch of other jobs with them.
I think that both you and the grandparent comment are correct at the same time. It feels like there is a strong dichotomy between how H1B visa is treated across different realms of tech.
I have been working in big tech for a decade, and have a few friends working in the more technical financial firms (think more TwoSigma/HRT/Citadel, not JPM/GS), and my experience matches yours. Every H1B I knew at the companies I worked at was absolutely not hired as a cost-cutting measure. It was just simply difficult to find people who could qualify. And god knows we tried, I remember my team interviewing roughly 50 people just to fill a position of just a baseline decent dev (not a rockstar math olympics winner with multiple groundbreaking publications; though that would've been nice). And absolutely none of them were underpaid either, they were on the exact same comp range for the level, with plenty of them topping out the range. In fact, they actually ended up costing more to the employer than a local would, due to having to deal with immigration lawyers/filing fees/etc. (all while being paid the same as everyone else).
Meanwhile, I have a lot of acquaintances from undergrad working as devs at tech consultancy firms and more "general/traditional finance" companies. The stories I hear from them about H1B at their workplaces are pretty much exactly what the grandparent comment describes, and even worse.
> In fact, they actually ended up costing more to the employer than a local would, due to having to deal with immigration lawyers/filing fees/etc. (all while being paid the same as everyone else).
I mean, you were actually underpaying the local workers if this was the case? If you offered the fully loaded salary to the local workers they might have accepted.
Or the local going rate for qualified personel were higher than you were willing to pay (which per def is true, if you had to bring in foreign work?).
> Or the local going rate for qualified personel were higher than you were willing to pay (which per def is true, if you had to bring in foreign work?).
Yeah, by definition this is pretty much always true, no? No matter how scarce local workers are, if you were willing to offer double the market rate you could probably find someone. Scarcity and price are two sides of the same coin, that's how markets work. Bringing in labor from another country when local talent is scarce both reduces costs/wages and reduces scarcity.
Workers on an H1B are more abusable though - if they lose the job they have something like 30 days to find another one or they have to leave the country entirely.
So you talk a good game about work life balance and then after you hire an H1B worker and bring them to the country you can spring 60 hour weeks doing tedius things and many won't be in a position to say no.
The salary might also seem higher to somebody who doesn't understand the cost of living in the US (and how many things are not paid for via taxes like healthcare).
Yep, and that is also an explicit requirement for interviewers at every company I worked at.
I had to do interview training myself at one of them, and the guidelines were fairly specific and clear about this. We neither knew about the immigration status of the candidate nor were we allowed to ask/note/talk about it at all. Same as with age/marital status/etc.
> Or the local going rate for qualified personel were higher than you were willing to pay
Whenever someone says "But then the locals making $400k would make $500k" I have to ask: where are all these qualified locals for whom $400k isn't enough money already? Shouldn't all the laid-off people be champing at the bit for these jobs?
At some price point you genuinely do run out of local talent. At that point it's just a question of whether the work goes abroad or foreign workers come in.
> Or the local going rate for qualified personel were higher than you were willing to pay (which per def is true, if you had to bring in foreign work?).
Nope, immigration fees/lawyer expenses are simply just a negligible cost in the grand scheme of things.
When you hire someone earning $350k+ in annual TC, an extra $10-20k one-time cost of immigration-related expenses is a nothingburger for big tech companies.
Along the same line of reasoning: relocation expenses for candidates within the US. Big tech companies don't stress over a one-time $10k relocation package cost (for a candidate that passed the interviews and accepted the offer, but just happened to be from another state).
I can't speak to your particular situation, but in my experience this has been two factors; one is location -- it is sometimes hard in some locations to find senior talent whereas H1Bs are (naturally) more amenable to moving. The other is pricing, which is echoing the GP's point. Senior talent is expensive and you can get it at (apparently) considerably lower cost by looking for H1B applicants.
How many H1-B or non-H1-B jobs are “high 6 figures”?
That’s a tiny, tiny minority of the tech employment market and one which would readily shrug off a one-time $100K expense. (That would be less than 2 months’ salary for a high-6-figure position.)
$600K+ is around 1% of the US tech market and tends to run in clusters (so your circle is more likely to have people near you in comp than a random selection).
I'm not doubting your first statement. For your second statement, I think people probably estimate it reasonably accurately as "rare, but not extraordinarily rare nor unheard of".
IMO the “tech market” is uselessly broad. Why include Google fellows with desktop IT at a regional insurance brokerage in the same group? I don’t think it helps set policy well for either group.
Looks like there is need for 2 separate visa categories:
- One to bring top 0.1% talent from across the globe to the US
- Another to bring in temporary talent as needed
Current version of H1B had become a big basket to hold both, and abused too for just finding cheaper labor. It may be time to segment these out.
Also, given that US has ~400 million local citizens, there should be less need for either.
H1b was officially intended to be the former category, and a $100k visa fee puts in back squarely in that category. For a company that wants 0.1% talent paying an extra $100k one-time fee is expensive but not a show-stopper
Now the question is whether the US wants another visa category for finding cheap labor. I am not sure that is either needed or desired (by voters). Maybe with the exception of agriculture
We actually have more than 2. For the top talent, for example, you have a choice between O1 (nonimmigrant visa) and EB1{A,B} (immigrant category). Same we have multiple visas for temp workers of lesser qualifications: L,J, H2 for seasonal farm workers etc. H1B is just the most abused one as it's the key part of the very important F1->OPT->H1B scheme, which literally makes billions for American schools.
There is no need for "temporary talent" from foreign countries. US is graduating plenty of CS grads from our schools. There is a need for wage suppression and exploitation (for anyone not aware, if you get fired from your H1B job you have 2 weeks to leave the county). That's why they have a reputation for being "better", another word for it is indentured servitude.
> Looks like there is need for 2 separate visa categories: - One to bring top 0.1% talent from across the globe to the US - Another to bring in temporary talent as needed
O-1 is for exceptional talent ("extraordinary ability"). Bring exceptional talent, eliminate the H-1B visa. It's that simple.
Every visa type intended to bring in top talent will be gamed, if easier paths to immigration are not available. That's an unavoidable consequence of the idea that administrative decisions must be made by government officials with sufficient status and responsibility.
When you actually want to identify talent, it works the same way everywhere. You find other experts in the field you can trust and ask them to use their subjective judgment. Governments don't want to do that unless it's absolutely critical, as it goes against the prevailing theory of how government bureaucracy is supposed to work. Even if the government is willing to give outside experts the power to make the decisions, the experts probably don't want to accept the liability that comes with it. Which leaves the final decisions to government officials who rarely have the expertise to evaluate the claims on their own.
My experience writing a letter for a colleague about 10 years ago was that it seemed pretty arbitrary and vague, just in terms of what I was asked to do.
There are already categories like this if you jump away from tech.
Our friendly neighborhood Ski resort oligarchies leverage the J-1 Visa program to bring in international students to work at the resorts over paying more to hire local workers for example. They also leverage the company store model by putting them in dorms and charging them accordingly for housing.
While I’m more open to this kind of H1B use, you all should be investing in training local talent as well. Ideally using those H1Bs to train local talent.
We put people on the moon. I find it hard to believe the people here lack the raw ability. I find it much more likely businesses don’t want to give back to the country that they’re residing in.
I learned a tremendous amount (and was very successful as a result) from foreign born colleagues (some of whom went on to be ACM fellows, and other major awards).
Having a disproportionate share of the best people world wide to work with is a great privilege and advantage.
I think I would reframe the OP less about cost cutting and more that the company has an unrealistic cap on salary. Would be interesting to see where geographically your experience was. Having worked in the Midwest the problem I have found is that the population wanting to live in the Midwest is small and then when you are trying to recruit top talent it is even harder. You would need to pay more but then most companies do this analysis where they say the median level 1 junior tech salary is x for this region. Which on face value is maybe ok but then you look at the job market and there is low to no real tech jobs. To hire smart people you are asking them to move to a place that has less to do and no interchangeable market for their talent.
In software, groups of people (teams) have value far more than individuals. You need a large pool of talent to reliably build good teams. This includes some amount of the very best people world wide.
These people gravitate towards big cities where they can earn more, access more amenities and work with other top talent.
Remote could have changed that, but it seems to have fizzled for now.
And it’s a hard problem to fully specify. A lot of people here seem to think that CS style analytical thinking can solve every real world problem precisely. That’s just not true.
Comparing getting an American to uproot themselves from their entire community to move to the Bay Area for a job vs. someone on the other side of the world who is looking to get into America just aren't the same. Ultimately, H1Bs are used to lower the working standards of Americans and enrich tiny pockets of existing regional capital holders.
Regional wealth inequality in America has not gotten better as Silicon Valley has gotten richer and brought in more foreign labor. At some point, the people making money hand over fist need to show how they're improving the situation for Americans instead of just saying "trust us, bro."
The AI discussion hasn't helped Silicon Valley seem more in touch with "flyover" states either. It's pretty clear there's a lot of disdain and hostility from Silicon Valley towards the "average" American.
Were they on H1Bs? Most I knew from similar countries in the Bay Area wouldn’t have been.
But these visas aren’t about best, btw. They’re about none available. The goalpost has moved to “none available for my price in the most expensive place on earth.” In my experience, the overall effect of these policies was hiring foreign masters students who were more exploitable over American undergraduates who would require the same training. The graduate pipeline, where domestic students were being warned off during the early 2000s already due to poor working conditions, became a credentialism excuse which was also exploited by researchers.
Again, we keep coming to these tertiary arguments which don’t deal with the issue: domestic born Americans are unhappy with their outcomes. Immigration is about the dumbest solution to Americans not being able to afford kids I can imagine. If that’s Silicon Valley’s best solution to a biological imperative, I expect things to only get worse. No, dorm-style housing that requires two tech incomes is not the American Dream. Please look at housing costs in San Jose before asking for more exploitable labor.
They all eventually became permanent residents and citizens. But they all start off as h1 or the one that lets you stay a while after finishing a PhD. Some switched to O-1 (or whatever the extraordinary talent one is).
I’ve worked with some amazing Austrians who had to go to 3rd country for a year waiting for the lottery.
I've worked with amazing people from all parts of the world. I'm a bit uncomfortable with bucketing my coworkers' abilities by ethnicity like this though.
But I am American: most of us couldn't even guess our own ethnic origins after a couple generations, especially if our ancestors weren't affluent. That fundamental difference in worldview makes all these discussions so difficult.
We spent a ton of time and effort trying to find anyone to our standards, never able to find enough. H1B (and other work visas) were generally better and more Sr compared to locals we found. They got paid as much or more than everyone else.
When we had great people we could not get here we would instead build a team overseas, taking a bunch of other jobs with them.