If they could hire someone locally at their desired level of pay, they wouldn't. But while a legitimate talent shortage (at any price) may exist for super elite, specialist roles, there are plenty of citizens who can do typical engineering or IT work. Companies that don't pay enough will have a hard time with hiring though, thus perceiving a shortage.
Employers know it's harder for them to switch jobs so they have leverage. They can't complain or do much if management requires they be on-call in the evening or work late. This makes the H-1B worker more attractive to management at the same salary level, since they'll do more work and won't rock the boat. I've also seen H-1Bs receive the same base salary offer, but over time their variable compensation/RSUs (large portion of TC at many tech jobs) and salary progression are much worse.
I don't think it's unreasonable to limit H-1Bs to exceptional talent, or at least review their total compensation more thoroughly to ensure they aren't putting excessive downward pressure on the wages of ordinary middle-class citizens.
Employers know it's harder for them to switch jobs so they have leverage. They can't complain or do much if management requires they be on-call in the evening or work late. This makes the H-1B worker more attractive to management at the same salary level, since they'll do more work and won't rock the boat. I've also seen H-1Bs receive the same base salary offer, but over time their variable compensation/RSUs (large portion of TC at many tech jobs) and salary progression are much worse.
I don't think it's unreasonable to limit H-1Bs to exceptional talent, or at least review their total compensation more thoroughly to ensure they aren't putting excessive downward pressure on the wages of ordinary middle-class citizens.