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Did Gates Fib About H1-B Salaries?
Posted by
kdawson
on Thu Feb 08, 2007 01:11 PM
from the little-white-ones dept.
from the little-white-ones dept.
netbuzz writes "While in Washington last year lobbying for higher H1-B visa limits, Bill Gates told David Broder of the Washington Post that Microsoft starts such workers at about $100,000. An analysis by one offshoring critic suggests that's not true. If his analysis is correct, it would undermine part of the case for lifting H1-B ceilings.
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Did Gates Fib About H1-B Salaries?
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Say It Ain't So, Bill! (Score:2, Interesting)
Bill Gates: computer scientist, marketer, business man, philanthropist
Who would have thought the term Renaissance Man [wikipedia.org] could have such negative connotations?
Re:Say It Ain't So, Bill! (Score:5, Funny)
(http://kim.biyn.com/)
Now I wonder about Vista - will it really rock my world? Is it really more secure than Linux? Now I'm not so sure Microsoft was telling the truth about that either.
Re:Say It Ain't So, Bill! (Score:4, Funny)
If by 'rock' you mean a short form of 'rock and roll' which was a euphamism for sex, then yeah, you're f**ked
Re:Say It Ain't So, Bill! (Score:5, Funny)
(http://theravensnest.org/ | Last Journal: Sunday October 07, @07:05AM)
Re:Say It Ain't So, Bill! (Score:5, Funny)
(http://nick.tn-uk.net/)
compuglobalmegahypernet (Score:4, Funny)
(http://www.vistahelpforum.com/)
Vista Help Forum [vistahelpforum.com]
Re:compuglobalmegahypernet (Score:5, Interesting)
Re:compuglobalmegahypernet (Score:4, Funny)
Let's be fair, here: (Score:5, Funny)
Re:Let's be fair, here: (Score:5, Funny)
Re:Let's be fair, here: (Score:5, Funny)
(Last Journal: Wednesday February 07 2007, @10:52AM)
Well duh (Score:5, Funny)
Re:Well duh (Score:5, Informative)
Gates may not have the exact salary numbers (I'd say the average today is more like $90k base, definitely > $100k w/ bonus). The alternative (which is happening as well) is to hire the employees in their home countries and pay them 1/3 as much and not have that money returned to the local US economy.
Re:Well duh (Score:4, Insightful)
(http://www.informationr.us/ | Last Journal: Monday November 05, @09:38AM)
If that's the issue- and I hate to sound like a broken record, but I've posted this in EVERY freakin' H-1b story on slashdot- why not take UNQUALIFIED PEOPLE, and then pay for their traing so that they can fill the jobs that are available? Wouldn't that be cheaper than getting people from half a world away?
Re:Well duh (Score:5, Insightful)
So instead of looking for the best talent globally, a company should *pay* for a worker who may not have the inclination or drive to master his profession?
I'm no Republican, but if that's not the road to a stagnant country where entitlements are expected then I don't know what is.
My girlfriend is on an h1b for architecture; she's from Japan. She's also the hardest, most driven worker her company has, and they offered her ridiculous amounts of money (for architecture) during her review because she's such an asset. They didn't hire her because she's cheaper, they hired her because she's good.
I can't think of a faster way to torpedo the American character than the parent's idea.
Re:Well duh (Score:4, Insightful)
(http://slashdot.org/ | Last Journal: Thursday August 07 2003, @02:38PM)
Most job descriptions for ANY tech company are overly specific, requiring experience with particular technologies that a reasonably skilled programmer can learn in a few weeks at most. And that's what HR departments use when they're screening resumes. Is it any wonder that they can't find the workers they want?
Re:Well duh (Score:4, Insightful)
(http://www.informationr.us/ | Last Journal: Monday November 05, @09:38AM)
The only thing in computer programming that is NOT a trainable skill is the ability to sit in front of a screen solving problems instead of having constant human contact. I would think the prevalence of video games in the United States would have produced plenty of "inborn talent" in that arena by now.
Re:Well duh (Score:5, Insightful)
Supply and demand says that you are just simply not offering enough to make it worth someone's while. Offer the right amount and you will have absolutely no problem finding the people locally. All you are doing here is increasing the supply to dilute the value of the job. I can't blame you for wanting to do so, but it would be nice if you would least acknowledge the fact instead of trying to pass the blame on to the workers who you aren't willing to compensate.
Re:Well duh (Score:5, Insightful)
(http://kamthaka.blogspot.com/ | Last Journal: Wednesday March 30 2005, @03:18PM)
There's no such thing as "not enough qualified people". There's only "not enough qualified people for the amount we wish to pay." If you raised what you offered, you get the people you ned. If you competitors did the same, more people would enter/stay in the profession.
But only if you discount offshoring...
Once you factor offshoring into the mix, the question becomes whether the jobs move overseas until the US salaries drop to the overseas salaries plus transaction costs.
So -- the CEOs are right: we do need and H1B program. But not for the reasons they state. Politically, they can't say "give us this program or we'll move our jobs to India," politically it would be seen as blackmail. Tariffs and taxes would be up overnight.
This is not just an academic distinction. The rationale you have determines the kind of program you create. If you want to depress salaries, you have a program like what we have now. Invite 'em over for a few years, then kick them out of the country when they've achieved seniority, creating knowledge transfer to places with lower salaries ripe for offshoring.
If you want to prevent jobs going overseas, you invite people over here and encourage them to stay as long as they want; you just don't let in more new inexperienced workers and kick the experienced ones out.
Re:Well duh (Score:5, Funny)
The tallest midget in the circus is still a midget.
I'm a former Microsoft employee (Score:5, Informative)
(http://slashdot.org/)
Now the thing is, both US college grad and experienced H1-B will be at the same starting level and will be paid the same wage. This DOES NOT mean they'll be doing the same job. There's a shortage of experienced folks, so the guy with experience will be doing things that require experience, when college grad will be doing something else. H1-B is therefore paid below the market wage for what he's doing (but not for his level). This, coupled with slower promotion rate puts him at a huge disadvantage. Given that promotion velocity is capped no matter how hard you bust your ass, you may never reach higher levels because you started lower and were promoted slower.
This is fully within the constraints of law, and not everyone ends up like this. I was in this situation and so were many of my H1-B coworkers.
Re:Well duh (Score:4, Informative)
(http://www.outpimp.com/?x=57020 | Last Journal: Wednesday September 12, @09:15PM)
While those employees where good, they were not better skilled than the American programmers on staff. Not worse, but not better."
I have to agree. I find their skills, and possibly this is due to the social environment they are raised in over there, are largely ok if you give them rote coding to do, with very explicit requirements and instructions.
They just did not seem to do as well, on brainstorming, and being creative as the US citizens. And in many of the projects I've worked on...well, well set requirments and the like are hard to find. Most jobs I've been on, have been development, and you had to often make it up as you went due to deadlines and changing customer requests. I'm sure many of you out there have run into that scenario.
Don't get me wrong...this isn't every H1-B type I've worked with, but, I have seen this as a very strong general trend in my experience working with this type worker.
I think many an outsourcer has seen this come up as a problem when shipping things over to India...and then having to deal with it over phone/email. At least if you have a worker like this in your office, it makes communication a bit easier...but, even so, time explaining is time wasted. Something I've seen managers have to consider after they ran into this type of situation...
Equivalent figures (Score:1)
Bill G is just a parrot (Score:4, Insightful)
(Last Journal: Wednesday October 31, @08:33AM)
He meets politicians and tells them whatever his acolytes ask him to tell them. He would go to India and tell exactly the opposite story. Go look at Indian websites oooohing aaahhing his compliments and how much he is going to invest in India and how important R&D done in India is to Microsoft.
Re:Bill G is just a parrot (Score:5, Insightful)
(http://theravensnest.org/ | Last Journal: Sunday October 07, @07:05AM)
market rates change (Score:5, Interesting)
(http://www.toolsforteams.com/)
From another perspective, Gates is saying that current market rates are ~100k. This is about right for mid-level software engineers with 2-4 years of experience, in that area.
It's not the same as looking at H1-B applications and trying to figure current rates, as they will reflect market conditions from 1-4 years ago (depending on when the H1-B process started for that individual).
Re:market rates change (Score:4, Informative)
Re:market rates change (Score:4, Insightful)
(Last Journal: Thursday November 17 2005, @05:12PM)
Is it the mid-90s again? That's the only possibility if someone is making that much with only 2-4 years experience. And 100k+, even in an expensive city as Seattle, is still awesome money.
The simple fact is that I've know many people, some very qualified and some not so much, who applied to MS and didn't get so much as a second look. I've known 1 person who's been hired, and he was very young (just turned 22 at the time) and very arrogant.
I think if you want to work for MS you need to be young, show that all you care about is working long hours at the expense of your social life, and be an asshole. They like assholes who know it all. That's why there's a lot of shit that get spewed from Redmond. If you're a foreigner it's even better because they can pay you more than you'd get in your own country but less than a resident and you'll probably work very long hours because you're just happy to be making 'the big bucks'!
Tangentially related but (Score:3, Insightful)
(http://slashdot.org???? | Last Journal: Saturday August 12 2006, @03:06AM)
We should give him a break... (Score:1)
(http://www.videosift.com/story.php?id=1780)
Lying with statistics (Score:5, Interesting)
Also, TFA cites green card applications, not green card grants.
For sure they are cheating (Score:1)
Maybe he was misquoted? (Score:4, Insightful)
But, whats the alternative? (Score:2, Insightful)
(http://www.process64.com/)
1. No H1-B, means higher costs for US Companies
2. US Companies compete locally (inside US), and globally with Global Companies
3. So US Companies' have a higher cost of product development or software services, compared to those from outside (which employ cheaper labor)
4.
5.
6. Profit! (BUT HOW??!!)
An alternative is to ship most of the development or services lifecycle outside, so that H1-Bs are not needed anymore. This is even worse for the US, isn't it? The money wouldn't even get spent in the US. That is, "offshoring" or "bangaloring"
As they say, treat the disease, not the symptom. Reducing work permits is not the answer.
Possible Mistake (Score:1)
Salary (Score:1)
He's probably right... (Score:3, Insightful)
When he says $100K, he's probably thinking salary+ health care + 401K + taxes. When you add that up on an average individual employee, you get to $100K pretty easily.
The difference is that when we read $100K, we assume salary only. I know lots of people working at MSFT, none of whom are making that much even after 5+ years there. Unless they are paying their H1-B's more, he's either thinking in terms of total compensation package or...he's just plain lying.
Honestly though, he may not actually know -- why would he care about an operational detail like that at this point in his career?
A more likely explanation.... (Score:4, Insightful)
The supply agency charges a company like Microsoft an hourly rate equivalent of $100,000
It happens to be true..... (Score:5, Interesting)
So, as hard as it might be for some of you to stomach, Gates is telling the truth. These are not Janitors Microsoft is hiring, but highly trained, highly sought after individuals, regardless of country of origin.
Deal with it.
It supports..... (Score:2, Funny)
(Last Journal: Thursday July 07 2005, @09:59AM)
H1-B is BAD either way (Score:1)
And the article tries to criticize Bill Gate's H1-B comment by green card data. Come on, there are at least a dozen
- How many H1-B's are in Microsoft? What is the time period of study? And there are only 1202 green card applications?
- Not every H1-B holders want a green card. Honestly, I believe the higher salaries they are, the less inclined they would apply for a green card.
- If you want to have a "cheap, controllable" labor source, you will not apply green card for them. Simple.
- Green card takes a few years to process. $71k in 2002 worths a lot more now.
I guess it depends on your definition of "about" (Score:2, Insightful)
(http://slashdot.org/)
I am not defending Bill Gates, that's just wrong...ewwwww. But, did he state that ALL H-1B's start at about $100k? If some start in a $90k - $100k range, some start in the $80k to $90k range, and the rest are below $80k is it a lie to say they start at about $100k? I dunno. I'm back to, "It depends on your definition of 'about'."
$100,000 doesn't matter (Score:2, Informative)
Gates's Response (Score:4, Funny)
good policy, wrong reason (Score:2)
If they can't come to the US on H1-B visas, companies like Microsoft will simply grow their overseas research labs further. That way, the US loses the talent, loses the tax revenue, and US workers will have to compete against people paid even less. So, capping H1-B visas will cause high-tech companies to move elsewhere and will cause US engineers to compete against highly skilled engineers in lower-wage countries.
Of course, that's exactly why it's the right thing to do: Europe, India, and China are (directly or indirectly) responsible for a large amount of US high tech exports, yet most of the highly skilled work is still being done in the US. That's obviously not fair, and restricting H1-B visas is one of the ways in which this problem can be fixed.
former H1B here... (Score:5, Insightful)
There is also another law that states that no more than 15% of your workforce can be H1-B based. This law is meant to protect U.S. citizens from being displaced by H1-B's and to assure that only really critical roles can be filled with H1-B workers. No one is going to hire an HR person on an H-1B (well unless they are super critical in an HR-kind of way to the company).
Another noteworthy thing to mention is, prevailing wage != FMV (fair market value) wage, at least in my experience. This difference between the two may amount to _some_ savings, but I doubt it is as significant as, let's say, hiring a foreign Indian worker in India at 1/2 or less the salary.
Speaking of hiring offshore - this may or may not prove to be a value added proposition - if you have some seriously senior, super-technical project managers who can divvy up a project into many well-defined/well-bounded specific tasks (e.g. write code for login/logout procedures for a webapp based on Tomcat, using JAAS as the authentication/mechanism, task #2, integrate JAAS with Active Directory on Windows Server, etc.), delegating these tasks to off-shore people, it could work. But this only works in a mature environment like Microsoft probably. It could work in smaller companies too, but it's much riskier, and it could inhibit the company's growth.
Offshoring is overrated. Hiring local, U.S. talent as well as H1B is much better value. Well, that's my opinion anyway, and I'm sticking to it
Salary... (Score:1)
MS doesn't dire dumbasses, like it or not (Score:2)
With a population of 298 million (Score:2)
(http://kim.biyn.com/)
misreading or misrepresenting (Score:2)
(http://www.daev.org/)
H1-B person here.. (Score:3, Informative)
(http://www.anserinae.net/)
My advice to unemployed US programmers: quit whining. If you aren't getting these jobs, you aren't qualified for them. Get your qualifications, get the experience, and compete with the best. It's what I had to do, and after watching the H1-B flamewar for the last five years, I still don't see why Americans think the global economy-- yes, it's global, accept it-- should go any easier on them than anyone else.
Gates and Salaries (Score:3, Informative)
I work for Microsoft on an H-1B (Score:4, Informative)
While the base salary isn't breaking $100k a lot of the time, Microsoft gives everyone (H-1B or otherwise) a bucketload of benefits that would easily push the cost to MS well over $100k.
Add into the mix the fact that Microsoft has to pay shiteloads of money for legal services, filing fees, premium processing, etc. just to keep us in the country, and you realize that it costs MS a decent amount more to keep H-1Bs in the country. Plus, the stupid Americans like to randomly tear up your visas from time to time if you come from a "suspicious" country, and let me tell you, those are expensive battles.
Pick yer nit or yer teapot (Score:1)
Complete bollocks ! (Score:1)
Assume that Billiams workforce is spread pretty evenly across the earnings spectrum. This is a pretty safe assumption considering how many employees M$ has.
Do the numbers and you will see that he would have to be paying a full 15% of his top earners that kind of money for the statement to be true.
Well, we happen to know that the top earners are almost universally not H1Bs. ( I can name about 10 of the top 50 that are almost universally natural born americans, mostly of Northern European decent).
Yet another example of Billiam spreading semi-truths I'm afraid.
H1B's really get paid the same? (Score:2)
There's something I don't understand...
Many here are quite convinced that H1Bs have to get paid the same as equivalent American workers. The company also has legal fees associated with this. Therefore, H1Bs must cost the company more than equivalent American workers.
If this is all true, why do companies do it? What could motivate them? For example, I find it implausible that there really isn't anybody available in Raleigh that can do network-protocol programming in C (despite what my employer's Labor Condition Applications say), but that's the only explanation, if we believe the comparable-pay arguments. It also presupposes that companies will pay more for higher-quality employees; also rather implausible.
I know the law says they have to get paid comparably... the law also says you can't use Kazaa, but it happens...
As a gun-toting, business-loving Republican... (Score:2)
(http://www.mathewbinkley.org/)
Supply and demand is a bitch sometimes, but it *does* work. If you were to pay, say, $1 million a year, Microsoft would probably have to hire armed guards to keep the horde at bay. If they are having problem finding qualified people at, say, $100k, perhaps they should try $120k, or $150k? But that's crazy talk...
H1B visas function as a corporate subsidy, creating a price-ceiling on domestic wages. It's strange how businesses think market economics is a wonderful thing, unless it happens to be against you. Then they run crying to Washington with a train of lobbyists to ask Uncle Sugar for "help".
There should be a law, that you aren't allowed to pass legislation that doesn't pass the muster of a freshman economics textbook.
Cost to Microsoft (Score:2)
(http://www.uberconcept.com/)
Even so it would still be a pretty stupid thing to say.
Almost True... (Score:1)
verifiable (Score:2)
Could Gates Be Contributing to the Autism Epidemic (Score:2)
(http://www.geocities.com/jim_bowery | Last Journal: Tuesday September 19 2006, @10:20PM)
Maximum by-State bivariate corelations with autism percapita 2000.
The following lines each contain the following items:
1) Correlation coefficient.
2) A function applied to adjust a State's percapita autism.
() means no function applied.
sqrt() means the square root was taken.
log() means the natural logarithm was taken.
3) The bivariate formula predicting the previously adjusted autism rate.
4) r1 is the correlation of the first variable alone with autism.
5) r2 is the correlation of the second variable alone with autism.
To generate a scattergram and see the raw data:
See http://laboratoryofthestates.com/cgi-bin/correlat
then enter "AutismPercapita2000SansOregonAndMass" for the vertical
and the formula given below for the horizontal.
-----------------
0.600310870050065 () sqrt(FinnishPercapita1990*ImmigrantsIndiaPercapit
0.599979036637678 sqrt() log(GSPIndustriesPerGSP1999*ImmigrantsNonWesternP
0.599618721521368 log() log(GSPIndustriesPerGSP1999*ImmigrantsNonWesternP
0.594501164716388 sqrt() log(GSPIndustriesPerGSP2000*ImmigrantsNonWesternP
0.593739683661006 log() log(GSPIndustriesPerGSP2000*ImmigrantsNonWesternP
0.590410355019427 () sqrt(FinnishPercapita1990/UFOReportsPercapitaPerS
0.589344939529547 () (FinnishPercapita1990*ImmigrantsIndiaPercapita199
0.588776855937162 () log(GSPIndustriesPerGSP1999*ImmigrantsNonWesternP
0.586104765698104 () sqrt(FinnishPercapita1990*H1BWithJobsPercapita199
Re:Fraud! (Score:1)
Re:Outsource Bill... Please Outsource... (Score:1)
Re:Fraud! (Score:2)
"I could'a been a contender."
Talent as you define it isn't necessarily talent as Microsoft or Google defines it. Talent alone doesn't make you employable. Not everyone gets a shot at the brass ring.
Re:Is MS looking for people?!? (Score:2)
Everybody, quick, put down Slashdot for just a moment, and get your resume over there!
Re:No need to expand H1B (Score:2)
(http://www.anserinae.net/)