H-1B visa system has recently undergone a complete overhaul, with the application fee soaring to $100,000. This change has sent shockwaves to new applicants, current visa holders, and countries alike.
A managing director at one of Wall Street’s leading bulge bracket banks has opened up about on social media regarding the ripple effect caused by the $100K rule on H-1B visa holders in the industry.
The new directive impact companies hiring foreign workers which mandates that employers must pay $100,000 as the application for H-1B visa.
However, according to the director’s recent social media post, the rule is creating unexpected challenges in budgeting and workforce management.
What does the post explain?
Managing director shared that talent acquisition teams received communication earlier this week advising that H-1B employees must be phased out within a year.
While the memo did not explicitly demand that these workers be let go, it strongly encouraged leaders to replace them. This has led to departments across the company scrambling to come up with transition plans.
They added that employers are now looking at ways to mitigate the impact of this new rule, and the uncertainty surrounding it is deterring top companies from hiring more H-1B workers.
According to the director, the “real effect” is that companies do not like ambiguity when it comes to hiring, which could ultimately lead to fewer opportunities for skilled foreign workers.
The director explained that it is creating complications in team budgets, particularly when it comes to allocating funds for bonuses.
“I have three H-1B workers in my department, and I’m personally phasing them out,” the director wrote. “The new visa requirements are skewing our budget for February bonus season, which is already tight.”
They are also considering replacing H-1B employees with workers from Mexico, noting that many highly skilled individuals there are eager for opportunities in New York City.
‘The company will vanish’
Netizens posted their comments on the post. A user explained, “In no time, the company will vanish. Those three H-1Bs are probably carrying the entire team’s workload. A big competitor will just scoop up that talent. I promise, a couple of years from now, the MD will be setting up bonuses at a McDonald’s store.”
It further added, “The US tech backbone has run on global talent for decades. Pretending otherwise doesn’t make it true. If you think H1Bs aren’t doing anything special, look at who actually keeps the systems running in places like FAANG As for the “fix your own country first” line half the world still struggles with basics like clean drinking water and reliable sanitation; the UN estimates nearly 2 billion people lack safe water and 3.6 billion lack adequate plumbing.”
Further it noted, “That’s not a “their problem” issue, it’s a global one. Every country has its cracks whether it’s water in one place or violent crime, homelessness, and opioid deaths in another. The point is, the ship needs fixing everywhere. Shouting from the sidelines doesn’t patch the holes. Talent and results do.”
“It’s amazing what they will do to avoid hiring US grads. Admitting $100K is chump change but then “looking for alternatives” while glossing over the unemployed new grads that will take $100K just to be able to eat and pay bills. No just continue the besiegement on US workers,” noted another.
“H-1B should be used in exceptional cases, where skill requirements cannot be satisfied by local talent. Not as a cost-cutting measure to benefit businesses. We don’t need to import people to make some poorly-written CRUD Java apps or serve in TPM roles. There are plenty of new grads and existing talent that can do that. In contrast, we perhaps we do have fewer scholars, technologists, and visionaries bringing in their industry-changing ideas or works—that’s who H-1B should be reserved for,” claimed another user.
(This story is based on a post shared by a social media user. The details, opinions, and statements quoted herein belong solely to the original poster and do not reflect the views of Financialexpress.com. We have not independently verified the claims.)