H-1B visas: Not always a magic bullet for employers

Workstations in Delhi, India.

Satya Polavarapu is CEO of eVantage.

David Rutchik is a partner at Pace Harmon.

The immigration overhaul currently under debate in the Senate calls for increasing the number of so-called H-1B visas for highly skilled immigrant workers. Last April, companies -- particularly tech companies -- filed applications so fast they hit the annual H-1B quota of 65,000 in a matter of days. The Senate immigration bill looks to almost double that number. Companies contend the visas allow them to hire workers they say are hard to find in the U.S. But the visas are not always a magic bullet for employers. 

eVantage Technologies is a small consulting and software company in New Jersey. The company uses H-1B visas, when it needs highly specialized tech workers it says it can’t find in the U.S. Usually the process goes off without a hitch. But, about 10 percent of the time, there’s a problem -- a big problem. The person hired doesn’t show up, which leaves eVantage CEO Satya Polavarapu shaking his head.

“'Where is this person?'" he wonders. "Sometimes when we send emails or try to call them, there would be no response.”

Deadlines on important projects have to be pushed back because of no-shows. And Polavarapu  loses the thousands of dollars he spent hiring the H-1 B worker.

“Six thousand dollars in direct costs,” he says.

The costs of H-1 B visa filing fees and attorney's fees. Polavarapu never finds out what happened to the H-1 B worker he hired.  But chances are, the person is working for another U.S. tech company. Some foreign workers with very specialized skills apply for more than one H-1 B visa job. They get a number of offers and never contact the companies they reject.

“It’s a burden," he says. "Also, it makes you rethink your strategy.”

Polavarapu’s strategy now? He does all interviews in person or on Skype to try to get to know the people he’s hiring. But also because of another H-1B problem: The ringer. I’m talking about an imposter. Somebody who’s highly qualified, who does an interview on behalf of an H-1B job applicant who’s not qualified and is often overseas. The ringer wows the interviewer and the unqualified applicant is hired.

It happened to Kevin Raffay, a contract programmer who helps staff up projects for tech companies. He interviewed a ringer and told his boss -- hire that guy! He was surprised when a very inexperienced programmer showed up.

“The candidate that I recommended had good communication skills and was technically sound," he says. "This person had very poor communication skills and was very junior as far as his technical capabilities.”

Now, Raffay stresses this happened at the height of the dot-com boom, before Skype, a time when most interviews were done over the phone. Ringers were a lot more common then, but they’re still out there.  Just Google “proxy interviewer” if you want to find one. Raffay says some even advertise -- and set a price.

“'I’ll take your interview for $30.' You know, you’re talking about a half hour of time to answer some questions for somebody who’s not able to answer them,” he says.

These reports of H-1B visa fraud are starting to get the attention of bigger companies. David Rutchik is a partner at Pace Harmon, a large, outsourcing advisory firm just outside Washington. He tells clients looking to hire an H-1B visa worker: “You want to do everything you can do. You want to validate. You want to get all the transcripts. You want to check references. You know, if you don’t have a rigorous hiring process, shame on you. You put yourself at risk by not doing so.”

Rutchik has also noticed that the government is making employers jump through more hoops to get an H-1B visa. Possibly, he says, to prevent fraud.

About the author

Nancy Marshall-Genzer is a senior reporter for Marketplace based in Washington, D.C. covering daily news.

Satya Polavarapu is CEO of eVantage.

David Rutchik is a partner at Pace Harmon.

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It's good to know companies that offer horrible jobs at low pay are getting screwed. I've seen ad after ad for tech employees who have to have several absurd requirements. One was listed as working on a render farm, monitoring jobs on the render system (they had to set up) , the employee had to be able to model in 3D, light, texture, and animate - and that they were salaried. What was the salary posted in the city of Dallas, Texas you ask? Why it was a whopping 30K!

These companies get no pity from me. American wages are dropping while companies have bought Washington in order to get cheap labor for jobs they refuse to pay Americans handsomely for doing. I guess I'll have to find a way to become a CEO. They're immune to H1B visa job threats and can screw up all they want - all while claiming they have "unique" skills. Ha! I think having a career in this country has finally become a punchline.

I hope more companies get ripped off by foreign workers and I think they should be paying them nearly twice what they would an American. In order to make things completely level, seeing as how that foreign worker will drain the economy by sending their paycheck overseas, the company that hires them needs to be taxed at a higher rate in order to help the people in this country they care nothing about.

Let's be real. I can't believe Marketplace did not report (or uncover) the truth about H-1B visas... H-1B workers come cheap! Its no wonder 60,000 applications are filed in a few days. Where else can you get a doctoral level engineer for $50K.

I am amazed at the thinking that says we can't find skilled tech workers herein the USA. All 60,000 new H-1B visas will mean is 60,000 US engineers will be out of work. Wake up marketplace!

It's always the lousy workers who complain the loudest about not being hired.

Meaning what? You're saying that there aren't qualified AMERICANS for these jobs in question? Your comment is baffling.

"The company uses H-1B visas, when it needs highly specialized tech workers it says it can’t find in the U.S."
Whenever I read a comment like this, I always want someone to follow up with the question, "What are you offering to pay these tech workers?"
I have no sympathy for these traitorous employers. They look to in-source cheap labor and ignore the massive amounts of graduates with technical degrees pouring from our universities. College graduates in the U.S. face a bleak future as this country's government sells their future to corporate entities bent on hoarding wealth for the top 1%. The middle class is dying in the U.S. and this is yet another story as to why.
The final nail in the coffin will be the so-called "Immigration Reform" travesty on Capitol Hill currently. 33 Million new legal immigrants in the next 10 years, even though we have no hope of creating that many jobs.
What will the rest of us (or our kids) do for work?

Whenever I hear a comment like this, I always shout at the radio, "Why doesn't NPR EVER question the claim that companies can't find these 'highly specialized tech workers' here in the US?" Forget new grads -- there are plenty of experienced tech workers who are going begging for jobs. And from what I've seen, H1Bs don't appear to be paid less, and LEGALLY can't be paid less. When I worked for a trading company in Houston that hired mostly H1B programmers, they were able to buy houses and live better than I did. The H1B visa program is a sham, just like the "path to citizenship" for illegal immigrants.

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