Companies are not stupid enough to hire someone incompetent.
Basically, local talent is equal or cheaper than H-1B in most cases because the ancillary expenditure for H-1B is higher. You need access to lawyers, immigration officers, visa fees, support personnel etc. But if the H-1B wages are increased, then the small companies will slowly get shut out of the H-1B options. It will directly impact the startup market in the US. Which means the startups will have to move base to other countries to acquire cheaper talent, like Canada or even India.
That's BS. If that were the case, then why are there so many STEM vacancies? The tech-crunch is because Americans are not opting for STEM courses. And that's because the govt has made loans so easily available that universities have increased course fees and made it unaffordable to most people.
https://www.usnews.com/news/stem-so...w-income-students-nowhere-to-be-found-in-stem
In India, the yearly fees for a Bachelor's engineering seat for a good student can be anywhere from $60 to $800. And then some of these guys get paid $70-85000 per year in the US through H-1B for just holding a Bachelor's degree. Talk about profit margin. The cheap Bachelor's allows Indians to get better educated and also allows them to pursue over-priced Master's in the US.
Most of the Indian employees with H-1Bs have only Bachelor's.
I have numbers for the top 3 in 2017.
Cognizant
Approved: 28908
Bachelor's: 22391
TCS
Approved: 14697
Bachelor's: 11766
Infosys
Approved: 13408
Bachelor's: 10130
So in many cases they are actually getting overpaid for their degrees.
American companies do not invest in the training of employees, the outsourcing companies do.
So basically, it's up to the outsourcing company how they handle their employees. It makes no difference to the American company whether the outsourcing company has more or less attrition as long as the service agreement is met.
Where do you get such nonsense news?
Walmart only has a couple thousand H-1B employees brought in over a decade. They probably have only a few hundred H-1Bs today.