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Why America Needs More H-1B Visas

Article via CIO Insight’s Marc J. Schiller

The IT community needs to support foreign worker authorization as a potential path to citizenship in order to keep the U.S. globally competitive.

The tech community has officially and vocally rallied around the issue of immigration reform, most notably with the recent formation of the political advocacy group FWD.us. Boasting such heavy-hitting founders as Mark Zuckerberg of Facebook, Drew Houston of Dropbox, Reid Hoffman of LinkedIn, and a slew of other tech-household names signing on as supporters, FWD.us is saying all the right things.

Of particular importance is the organization’s call for an increase in “the number of H-1B visas to attract the world’s best and the brightest workers, while implementing reforms that encourage this talent to permanently reside in the U.S.,” including “a pathway to citizenship for immigrants currently living in the United States that do not have legal status.”

So, What’s the Problem?

Unfortunately, not everyone sees things this way. There is plenty of controversy about immigration generally and about H-1B visas specifically. (The H-1B visa authorizes businesses to employ foreign workers in jobs that require expertise in specialized fields.) Some people object to H-1B visas, saying that they take jobs away from Americans. This is misguided, not because there are no problems with the program, but because it misses the big picture.

The anti-immigration argument regarding IT workers is pretty much the same one used for nearly every other class of worker, mainly that foreign IT workers drive down wages for U.S. workers. What’s more, critics say, if you look at the vast majority of the H-1B visas issued for tech workers, they go to Indian outsourcing companies operating in the U.S. These companies largely act as “body shops,” supplying low-wage workers for lower-end tech jobs. This is hardly the picture of a highly educated science, technology, engineering and mathematics (STEM) workforce, driving innovation and competitiveness for U.S. industries.

The problem is, and it pains me to admit it, is the H-1B critics are partially correct. I don’t for a moment agree with their conclusions or policy implications, but their general observations of what’s taking place in the IT employment marketplace is not totally wrong. So, here’s an insider’s view of what’s happening in the IT employment marketplace and a prescription for how we might fix it. But, first, some full disclosure: In addition to my own personal experiences and observations from working with IT leaders for 25-plus years, I am also drawing upon my wife’s experiences and observations as an immigration attorney. (Naturally, all legal or regulatory misstatements are my own.)

All IT workers Are Different

Broadly speaking, three tiers of IT workers exist:

●       Tier I    –  Creators

●       Tier II   –  Implementers

●       Tier III   –  Supporters

Tier I workers create new products and services. They are the software and hardware engineers that design and build all of the incredible products that we know and love from companies like Apple and Google. They are the elite cadre of techies that create the foundational elements of the tech world, such as programming languages, databases and new circuit boards. These people are the innovation engines at companies like Hewlett-Packard, Oracle and thousands of other businesses serving all types of niche marketplaces.

Mid-Year Job Forecast

While the jobs recovery continues to lag that of previous recessions, the outlook for the back half of 2012 shows continued improvement over 2011. Forty-four percent of private sector employers reported they are planning to hire full-time, permanent staff from July 1 through December 31, 2012, an increase of nine percentage points over the same period last year. In last year’s forecast, the number of companies planning to hire full-time, permanent employees (35 percent) increased seven percentage points over 2010. The nationwide survey, which was conducted by Harris Interactive© from May 14, 2012 to June 4, 2012, included more than 2,000 hiring managers and human resource professionals across industries and company sizes.

Download Full-Report: http://bit.ly/OjOPwN

“The rate of job creation has been slower than what we would have expected at this point in the recovery, but the market is stable,” said Matt Ferguson, CEO of CareerBuilder. “Two years ago, the hiring activity in the U.S. was driven primarily by large employers recruiting in metropolitan areas for a handful of industries or job functions. Today, we see job listings in all industries, market sizes and company sizes. The outlook for the remainder of the year is better than 2011, but it will follow the same pattern of steady progress rather than a surge in job growth. Employers will remain careful as they assess barriers and opportunities for growth in the economy and their own businesses.”

Employers plan to add a mix of new employees over the next six months, with each category trending up from last year:

· Hiring full-time, permanent employees – 44 percent, up from 35 percent in 2011

· Hiring part-time employees – 21 percent, up from 15 percent in 2011

· Hiring contract or temporary employees – 21 percent, up from 12 percent in 2011

Small Business Hiring

Hiring among small businesses is gradually gaining ground. However, companies with 50 or fewer employees continue to be more cautious than other segments and reported little change in recruitment plans from last year.

· 50 or fewer employees – 21 percent hiring full-time, permanent employees, up from 20 percent in 2011

· 250 or fewer employees – 31 percent hiring full-time, permanent employees, up from 26 percent in 2011

· 500 or fewer employees – 34 percent hiring full-time, permanent employees, up from 27 percent in 2011

Hiring in Metropolitan and Rural Areas

Job creation is picking up in both big cities and outlying towns. Of employers who are hiring, 75 percent said they will be recruiting for positions in large metropolitan areas while 39 percent will be hiring in non-metropolitan, rural areas.

Hiring By Region

Comparing regions, the West is the most optimistic in terms of hiring plans for July through December and reported the highest year-over-year increase for adding full-time, permanent staff.

· West – 47 percent hiring full-time, permanent employees, up from 35 percent in 2011

· South – 45 percent hiring full-time, permanent employees, up from 38 percent in 2011

· Northeast – 44 percent hiring full-time, permanent employees, up from 34 percent in 2011

· Midwest – 40 percent hiring full-time, permanent employees, up from 32 percent in 2011

Where Employers Are Hiring First

The top functional areas for which businesses plan to hire first are those directly impacting revenue and innovation. Customer Service remains in the No. 1 spot for recruitment with Information Technology and Sales rounding out the top three.

· Customer Service – 24 percent

· Information Technology – 22 percent

· Sales – 21 percent

· Administrative – 16 percent

· Business Development – 13 percent

· Accounting/Finance – 12 percent

· Marketing – 11 percent.

Emerging Occupations

More employers are also reporting that their organizations have created entirely new job functions within their organizations to respond to evolving business demands. When asked if their organizations currently have positions that didn’t exist in their firms five years ago, employers pointed to the following:

· Positions tied to social media – 16 percent

· Positions tied to storing and managing data – 15 percent

· Positions tied to cyber security – 12 percent

· Positions tied to financial regulation – 10 percent

· Positions tied to promoting diversity inside and outside the organization – 9 percent

· Positions tied to green energy and the environment – 8 percent

· Positions tied to global relations – 8 percent

Hiring in Q2 2012

One-third (34 percent) of employers added full-time, permanent headcount in the second quarter, up from 29 percent last year and 33 percent last quarter. Nine percent decreased headcount while 56 percent made no change to staff levels and 1 percent were unsure.

Hiring in Q3 2012

Looking ahead, 30 percent of employers plan to hire full-time, permanent employees in the third quarter, up from 26 percent last year. Given that employers historically have been more conservative in estimates than actual hiring activity, the number may come in higher at quarter end.

Seven percent expect to downsize staffs, down from 8 percent last year. Fifty-eight percent anticipate no changes to headcount while 5 percent are undecided.

Changing Jobs

Workers are feeling better about their job prospects with one-in-four (27 percent) stating they are likely to leave their current jobs in the next 12 months, up slightly from 26 percent last year.

As the job market improves and employee turnover rates increase, the competition for in-demand talent is getting more intense. Thirty-nine percent of employers are concerned that top talent will leave their organizations, up from 35 percent last year. Twenty-one percent reported they lost top performers in the second quarter, up from 18 percent last year and 19 percent last quarter.

*Totals may not equal 100 percent due to rounding.

Survey Methodology

This survey was conducted online within the U.S. by Harris Interactive© on behalf of CareerBuilder among 2,298 U.S. hiring managers and human resource professionals and 3,892 U.S. workers (employed full-time, not self-employed, non-government) ages 18 and over between May 14 and June 4, 2012 (percentages for some questions are based on a subset, based on their responses to certain questions). With pure probability samples of 2,298 and 3,892, one could say with a 95 percent probability that the overall results have a sampling error of +/-2.04 and +/-1.57 percentage points, respectively. Sampling error for data from sub-samples is higher and varies.

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Via CareerBuilder

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