Inaction On Immigration Reform Puts Tech Companies In A Tough Spot
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Joe Sharron, of Chitika, says helping employees obtain work visas costs the company several thousand dollars for each application. But, he adds, tech companies such as the Westborough firm have no choice.
The most controversial aspect of immigration reform – legalizing illegal immigrants and providing a path to citizenship – has little to do with the plight technology companies are facing in a system that provides too few work visas to those with the required education.
Republicans in the U.S. House of Representatives, who have refused to vote on a Senate bill that would usher in comprehensive immigration reform, support proposed bills that would raise the cap on H-1B visas – temporary work visas that allow foreign-born employees to work in the United States for up to 29 months ahead of receiving green cards – from the current 65,000 to 155,000, or to between 115,000 and 180,000 depending on need.
Because too few U.S. citizens graduate with degrees in science, technology, engineering and mathematics (STEM) disciplines to fill the number of available jobs available in those fields, lobbyists working on behalf of technology companies have pushed for passage of such bills so their client companies can have access to more qualified job candidates.
But like the other components of immigration reform, they're unlikely to advance this year, and probably won't until federal lawmakers get through mid-term elections in 2014.
Republicans, who control the House, may have an appetite to approve immigration reform bills on a piecemeal basis, but they're more likely they'll wait to act until after the elections, said Matthew Kolodziej, legislative fellow at the American Immigration Council in Washington D.C. The far-right of the GOP base fears that passing any type of immigration reform will lead to a path to citizenship for illegal immigrants, Kolodziej said. But others within the party – such as business leaders and Evangelicals – have been leaning toward passing some form of immigration legislation. Yet, there have been calls by some in Congress to push legislation through as early as this year, and Kolodziej conceded that “things can turn on a dime” in Washington.
“I think it really just is a matter of whether there will be enough pressure on GOP leadership to allow this to come forward,” Kolodziej said.
Starting Out Is The Easy Part
When it comes to pursuing work in the U.S., starting out is the easy part for foreign nationals, according to Joe Sharron, manager of Global People Assets at Chitika, an online ad network operator based in Westborough.
Chitika has an “extremely diverse workforce,” and Sharron said the company, which also has offices in India, is well-versed in the process of helping its employees obtain visas. Sharron said it costs the company several thousand dollars per application. It's a significant cost, but Sharron said tech companies don't have a choice because it's so difficult to find applicants who are qualified enough to fill open positions.
“It's just a matter of the market being so tight for technology-based companies,” Sharron said. “Unemployment amongst tech workers is probably zero percent right now.”
That translates to a workforce at Chitika comprised of approximately 35 to 40 percent foreign nationals, according to Sharron, most of whom hail from India. Sharron said recruiting talent often begins at colleges and universities. Students begin by completing practical training with company, which allows them to work legally for one year following graduation. Chitika may opt to sponsor the employee for an H-1B visa, which is offered to STEM grads whom the company can prove would serve an unmet workforce need.
While applicants wait, companies can choose to extend their employment for up to 17 months, giving an employee the opportunity to apply for an H-1B visa twice before his or her term expires. Applications are accepted starting April 1 of each year. This past April, the 65,000-visa cap was maxed out within four days, according to Sharron. The previous year, the cap wasn't reached for three to four months, an indication the economy has improved.
An H-1B is a precursor to a green card, and Sharron said the company will often continue sponsoring employees to help them achieve permanent residency. Right now, two Chitika employees are pursuing green cards, he said.
Sharron said the current system has worked so far for Chitika, a relatively small company. With attorneys staying abreast of visa application requirements, the company has not encountered a situation in which an employee has had to leave the country because of an inability to obtain a visa. But given how quickly the cap was reached this year, Sharron said there's always a concern the cap will be inadequate.
Choosing STEM Careers A Matter Of Values
There wouldn't be as great a need for more H-1B visas if more American students were to pursue STEM degrees. The lack of interest among U.S. citizens in STEM-related fields, which typically offer attractive starting salaries with excellent growth potential, is really an issue of values, according to Tom Thomsen, director of Worcester Polytechnic Institute's International House, which guides graduates through the visa process as they pursue jobs, frequently at MetroWest-based companies like MathWorks and EMC.
“In certain countries (like China and India), there is much more emphasis on teaching the skills that are needed at a very early stage, in (subjects like) math, science and chemistry,” Thomsen said.
Thomsen said he's not optimistic that immigration reform is close at hand. Meanwhile, the International House puts emphasis on educating students on the visa process so they, in turn, can educate employers.
“They don't know what's involved, so we sort of give the students tools they need when they interview, so they can explain (the process) to the employer,” Thomsen said.
Thomsen said companies sometimes shy away from hiring foreign nationals because they fear that sponsorship will be too costly and time-consuming. But he pointed out that new STEM graduates require no special treatment for the first nine months of their employment, given immigration laws that allow new graduates to pursue practical training here without visas.
One organization that's worked diligently to press for reform is Compete America, a nonprofit organization advocating for changes to U.S. Immigration policy regarding highly-educated foreign professionals.
Compete America contends that, in order to support innovation in the U.S. economy, policy needs to change to foster a competitive workforce. The organization cites several statistics that illustrate the contribution foreign professionals make to the U.S. economy, including the following:
• Immigrants have founded 25 percent of U.S. venture-backed companies in the last 15 years, according to the National Venture Capital Association;
• Indian and Chinese entrepreneurs founded nearly one-third of Silicon Valley's technology companies, generating more than 72,000 jobs; and
• On average, 50 percent or more of those graduating with advanced STEM degrees each year are foreign nationals.
Compete America also published data on how advanced engineering degrees break down between U.S. citizens and foreign nationals. In Massachusetts, 40 percent of master's degrees in engineering, and 47 percent of engineering doctoral degrees, are earned by students born outside the United States. n
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