Trump's $100,000 H-1B visa adds more pressure to consulting's growing recruitment woes

Core Insights - The introduction of a $100,000 H-1B application fee by President Trump poses significant challenges for consulting firms in talent acquisition, similar to those faced by tech companies [1][7] - Nearly 50% of H-1B applications are linked to professional, scientific, and technical services, highlighting the reliance of consulting firms on foreign skilled workers [2] - The H-1B program has been a crucial source of mid-level consultants with specialized skills, which are hard to find in the domestic market [4] Industry Impact - Consulting firms like Deloitte, EY, and Accenture are among the largest employers of H-1B visa holders, with Deloitte hiring 7,535 workers in the last three years, representing about 1% of its US workforce [5] - Accenture and EY have also significantly relied on H-1B visa holders, with 5,862 and 5,298 hires respectively, accounting for nearly 10% of their US headcounts [5] - The new application fee is expected to increase competition for talent and may lead to accelerated offshoring strategies among consulting firms [7] Strategic Responses - Consulting leaders express concern that the increased costs associated with H-1B visas will add friction to an already competitive talent market [4][6] - Major firms are anticipated to absorb some of the higher visa costs while adjusting their staffing models to maintain continuity [6] - Smaller consulting firms will need to enhance their ability to attract domestic talent, particularly for mid-level positions, to cope with the changes [6]