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I know there is a substantial pool of companies that uses the "consulting" formula and brings in cheap H1B labor, but H1B is a very broad Umbrella that also inc

I know there is a substantial pool of companies that uses the "consulting" formula and brings in cheap H1B labor, but H1B is a very broad Umbrella that also includes very highly skilled workers (with PhDs), doctors, etc. I'm a hiring manager in one of the big tech companies and let me tell you, H1B labor is NOT cheap. We not only have to pay them market rates, but a lot of foreign nationals with specialized skills are getting paid more than market average (it's part of the process that DOL enforces to make sure we don't abuse H1B). I think the study references "startups", so there is a chance that it is biased, but within that bias, accurate.

sg47 5y ago
But you get to retain them for longer since the switching cost is high.
treyfitty 5y ago
Look at credit card or marginalized finance departments. They get around the "we must pay market rates for H1B" by depressing the wages for the rest of their employees, thereby justifying the "market rate." - AmEx - Mastercard - JPMorgan - Citi H1B Labor might not be cheap if you're truly innovating, but let me tell you- there's a reason why credit card companies pay so little across the board, and it's no coincidence that they rely heavily on H1B labor.
walshemj 5y ago
But most are not theirs a difference between a transplant surgeon with a PHD and some one whos ground out a CS degree and memorized a lot of leet code.
SouthAmericanTA 5y ago
Creating a throwaway because I don't want this to follow my profile (which identifies me). I'm one of these high-skilled foreigners (phd, 5 years experience in applied ML). I make market rate salary in local currency (~35k USD/year) plus substantial bonuses (75~90k USD/year). I work for a major corp, and I think at least a couple dozen folks make similar money with similar experience. I'm not posting to brag; just to contextualize (and agree with parent) that, yeah, maybe that money would hire a recent grad in California and gets my phd+exp here, but I wouldn't say we're "cheap" I know you're discussing H1Bs and I'm talking remote work - just feel like it's worth poiting out that the same set of people fill both roles; so if remote salaries are X I can't see how you could pay less than X to a H1B. Why would I move to a much higher COL for same/less money? I mean, maybe some folks for the express purpose of leaving their country, but still - remote work should push H1B salaries up for skilled foreigners, right?

sg47 5y ago

But you get to retain them for longer since the switching cost is high.

treyfitty 5y ago

Look at credit card or marginalized finance departments. They get around the "we must pay market rates for H1B" by depressing the wages for the rest of their employees, thereby justifying the "market rate." - AmEx - Mastercard - JPMorgan - Citi H1B Labor might not be cheap if you're truly innovating, but let me tell you- there's a reason why credit card companies pay so little across the board, and it's no coincidence that they rely heavily on H1B labor.

walshemj 5y ago

But most are not theirs a difference between a transplant surgeon with a PHD and some one whos ground out a CS degree and memorized a lot of leet code.

SouthAmericanTA 5y ago

Creating a throwaway because I don't want this to follow my profile (which identifies me). I'm one of these high-skilled foreigners (phd, 5 years experience in applied ML). I make market rate salary in local currency (~35k USD/year) plus substantial bonuses (75~90k USD/year). I work for a major corp, and I think at least a couple dozen folks make similar money with similar experience. I'm not posting to brag; just to contextualize (and agree with parent) that, yeah, maybe that money would hire a recent grad in California and gets my phd+exp here, but I wouldn't say we're "cheap" I know you're discussing H1Bs and I'm talking remote work - just feel like it's worth poiting out that the same set of people fill both roles; so if remote salaries are X I can't see how you could pay less than X to a H1B. Why would I move to a much higher COL for same/less money? I mean, maybe some folks for the express purpose of leaving their country, but still - remote work should push H1B salaries up for skilled foreigners, right?