Growing Trends of Hiring in Latin America

Over the last few years, many US companies have been looking for and hiring talent in Latin America (LatAm) to work remotely and help their companies grow. The first thing that comes to mind is that US or European talents are usually more expensive than LatAm talents, but this is definitely not the only reason.

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  • By Insite Editorial Team
  • 05 Apr, 2024

How Does Remote Hiring in Latin America Work?

The most common way for US companies to find top LatAm talent is through HR agencies such as Insite. These agencies take care of the whole recruitment process to onboard new members, and all administrative tasks, such as payroll, once the new member is hired. This way, companies have the chance to focus on their core tasks.

Types of Hiring in Latin America: Direct Employees vs. Contractors

There are two usual ways of hiring a new team member in LatAm: as a direct employee or as a contractor.

Features of Hiring Direct Employees

This is the most traditional way of hiring, and it usually involves a long-term working relationship within the company. When hiring a direct employee, companies can secure the sense of commitment and loyalty that team members experience. They are likely to stay longer, especially when there are learning and development opportunities involved.

Companies usually offer benefits (health insurance, pension plans, among others) to encourage employees. However, hiring direct employees might be a challenge in LatAm due to legal and administrative obligations.

Features of Hiring a Contractor

This type of contract has become very popular over the last few years. Companies make their own arrangements with contractors, including the details that each party agrees to in terms of salary, paid time off, and working hours. This makes it easier to hire since companies may experience less legal and administrative barriers. Also, there’s a chance to do it with an HR agency that takes care of all these matters!

Benefits of Hiring in Latin America

There are several benefits when hiring talent in LatAm, and pricing options are just one of them. Let’s see some benefits.

Highly Skilled Talent

Many LatAm countries have top-tier education systems which contribute to highly-educated people. As a result, graduates are very skilled and eager to put their talents into practice. Offering challenges within a role is key to attracting LatAm talent.

Cost-Effective Hiring

US talents are usually way more expensive than LatAm talents, since minimum wages are quite lower in LatAm. This way, companies get a top-notch member for a much lower cost. To attract and secure top talents, the wage they are offered needs to be competitive, i.e., quite above their minimum wages.

This is still less than what companies would pay in the US for the same job quality. It’s a complete win-win: workers are better-paid for their job, and companies have to pay less than they would usually do.

Convenient Time Zone Overlap

LatAm and the US share most of their time zones, with no more than a two-hour gap. Teams can communicate nearly in real time, strengthening their synergy and collaboration.

Language Proficiency

Most LatAm countries speak Spanish as their first language, but they are taught English at a very early age thanks to their education systems. A lot of people are bilingual or proficient in English, and usually adapt very well to working with foreign-language-speaking countries.

Cultural Compatibility

LatAm people adapt to new cultures and environments very easily. Also, the US and LatAm share a well-known similarity: their work ethics. People from both countries want to exceed expectations and help companies grow. They’ll go the extra mile to achieve the best possible results!

Tips for Building a Successful Remote Team in LatAm

Here are some key strategies for establishing a remote team:

  • Competitive salaries
  • Comprehensive onboarding processes
  • Clear expectations for team members
  • Professional development opportunities

What Is the Fastest-Growing Industry in Latin America?

When talking about working remotely, the IT industry is the one that has seen massive growth, with LatAm countries offering an array of courses to train talents. The pandemic intensified demand for software developers, with Marketing and Design fields also following suit in remote hiring trends.

Which Countries in Latin America Have the Most Skilled Talent?

There are several factors that contribute to some LatAm countries having top-tier professionals: strong education systems, government support, and English proficiency, just to name a few.

Brazil, Mexico, Argentina, and Colombia have most of LatAm’s tech talent. These countries have enhanced their education systems to prepare more professionals, apart from already teaching English at an early age. Also, they all share a similar work culture with the US, which makes it a perfect match.

Who Is the Largest Employer in Latin America?

Well-known companies such as Amazon, Google, Microsoft, and IBM have already been hiring talent in LatAm for several years. Due to their companies’ size, these are the largest employers in LatAm.

Nonetheless, there are many small companies and start-ups that are becoming aware of the benefits of hiring outside of the US. This is happening not only due to the advantages of having remote teams, but also as a result, i.e., to meet the demand that US workers were no longer able to meet by themselves.

Challenging the Hiring System with Latin Staffing

In an interconnected world, where we can see technology innovations almost every day, getting used to the idea of remote work is what will put your company ahead. Understanding the importance of hiring talent from other parts of the world, and not only within the US, is already playing a crucial role in companies growth and will continue to do so.

There are a lot of advantages in hiring LatAm talents regarding costs, abilities, education, and culture. Partnerships between US companies and LatAm talents are already happening, and they don’t seem to end any time soon. So, why not start too? If you’re looking to hire talent in LatAm, we can help you!