H-1B visas

Employers have applied for 49,040 H-1B guest worker visas for next fiscal year, more than 75 percent of the program's annual cap of 65,000, according to U.S. Citizenship and Immigration Services. The limit for H-1B visas could be reached near or on the first day of federal fiscal year 2006, Oct. 1. This fiscal year, employers hit the annual cap as of the first day.

During the boom times, more than 175000 visas would be filled each year. With the economy growing, demand increasing, H-1B visas cut back, and fewer university students graduating with degrees in computer science, how do you think demand will be filled?

Jeff Altman
Concepts in Staffing
jeffaltman@cisny.com

August 2005

We're finally at the time of the year where consulting utilization is starting to increase.

For years, firms would budget projects, attempt to staff them, fail, and then turn to consultants to do the job.

During the boom times of the Internet explosion, this changed. Firms would open their doors and hire staff at phenomenal salaries and stock option deals, leaving brick and mortar firms (remember that phrase) left to hire what was left over.

Now, after three years of companies doing little hiring (March 2001 to 2004), firms are left with labor shortages. After all, how many beginners were hired out of US universities during that time? Certainly not enough to fill all those jobs for developers with 2-4 years of experience tat I keep hearing about from clients.

So firms are turning to consultants--temporary labor--with a lot of experience as a substitute, particularly in the very common instance of dealing with "young manager/older worker." Let me explain.

Imagine this situation. The manager is 31 years old. Three people come in for the developer job--someone who is 24 years old with with two yers of experience with one company; someone who is 27 years old who has three years remaining on their H1b visa; someone who is 43 yers old with 20+ years of experience including the last 7 years of experience doing consulting. What decision does the manager (tend to) make?

The 24 year old is too junior (inexperienced); we can't hire the H1B because of company policy. The next one is tricky.

The older worker is too senior for the job; they'll probably become bored and want to leave. They won't find it challenging. Baloney! The manager won't even know taht this is going on but they are uncomfortable managing an older worker. This is how age descrimination is demonstrated in technology hiring and this is why consultant utilization is about to explode.

Employers believe that they can keep the consultant (older, more experienced worker) controlled the contract and dispose of them, rather than use their experience wisely.

The firms that will manage older workers well in staff roles despite having younger leaders will solve their staffing problems. Those that operate with the same bias will struggle with the smaller labor pool.

Jeff Altman
Concepts in Staffing
(212) 293-4328
jeffaltman@cisny.com

Job growth was stronger than expected, increasing by 207000 jobs in July, rather than the 183000 forecast. Average hourly wages jumped 0.4%, the largest increase in a year.

The unemployment rate remained at 5%, the lowest in 47 months.