10 year IT salary history shows impact of H-1B and outsourcing on compensation
Only in the past three years have IT median salaries increased. Corporations continue looking for ways to cut costs. The two most common solutions have been outsourcing and H-1B visas. Both tend to lower demand for US nationals who are IT Pros and dampen the impact of increased salaries.
From our perspective, we see companies that are trying to REDUCE the number of highly paid IT Pros they have on their staffs. That reduces the demand for highly paid US workers and replaces them with low paid foreign workers. The solution that we see is that we eliminate the advantage that the foreign replacements have. Options that Congress should consider are:
- Limit 85% of all H-1B visas to US educated foreign nationals
- Make it so that H-1B workers must be paid MORE than US workers
- Eliminate the expense deduction for H-1B salaries and benefits that companies use when they calculate their taxes.
- Charge a penalty for each job outsourced offshore equal to all of the benefits and taxes that would be paid if the job remained in the US
- Any non US educated H-1B worker who is in the country for more than six months needs to have the job they are in re-evaluated and have the job be actively recruited for replacement for a US national or a process begun for conversion to a green card for permanent residency.
- Eliminate the ability of any enterprise from getting more than 5% of all available H-1B visas.