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🌎 THE LATAM RECRUITER - August 2023 Issue

Our collaboration with BoldTeams is going to make procuring equipment for remote teams in LatAm easier. With top-tier recruiting and streamlined remote setups removing logistical hurdles, this partnership means greater convenience for all our clients.

Global Challenges as Catalysts for New Opportunities

If someone had told me a while back that our industry would face the twists and turns it has in the past 6-12 months, I'd have had a hard time believing it. It's been a rollercoaster, right? The tech scene has been in the eye of the storm - promising startups have closed doors, and investment rainchecks have become the norm.

But here's my take: when challenges mount, opportunities arise. And for us? That's LatAm. With all of the business reshuffles and a sharpened focus on the bottom line, many teams have started realizing what hiring nearshore can do for them: scalable talent and consistent cost savings.

English in LatAm: More Than Just a Trend

There's a palpable momentum in Latin America: English proficiency is consistently rising. This isn't just organic growth; it's propelled by a myriad of solutions entering the market, each designed to uplift developers. AI tools are playing a substantial role in this linguistic upsurge.

Yet, beyond the language lies strategy. Increasingly, LatAm talents understand that English isn't just about communication—it's a pivotal advantage for their global career aspirations. Recognizing and embracing this evolution can be our strategic edge as we navigate the future of talent acquisition.

The EOR Enigma

'Employer of Record' (EOR) often echoes in client conversations. Familiar names crop up - Plane (our proud partner, details of our collaboration here), Deel, Oyster, and more. But knowing the name and grasping what it entails are two different things.

• Behind the Price Tag: Many EORs lay out their pricing neatly, but there's a deeper story. The leap from their fee to the payroll cost in LatAm has its intricacies. There are benefits, taxes, and other variables to factor in. And if you're looking for a clear-cut guide on the subject, our article, What is an Employer of Record?, provides a comprehensive look into the world of EORs.

• Contractor vs. Full-time: Understanding the difference between hiring through an EOR as a contractor vs. an employee. It's more than just terminology—it's strategy. For those seeking to streamline their talent acquisition process, especially in the tech domain, our guide on Finding a Developer for Your Startup has more info on this topic.

What CEOs & Hiring Managers Should Know About EOR's

You should consider some hard-hitting truths and strategies to get the most out of the EOR world. Here's the lowdown:

1. Salary Insights: Sure, GlassDoor has numbers, but do you want ballpark figures or the real deal? You'll want to look at sites like TECLA when getting the inside scoop on LatAm salaries. Think of it as having a well-informed advisor in the region.

2. Unpacking EOR Costs: Got a salary figure in mind, like $1,000, $2,000, or $3,000? Don't just settle for the headline EOR fee. Ask for the whole picture, from benefits to taxes and everything in between.

3. Dollar Payments – A Big Deal: It sounds simple, but it matters. Can your candidates get paid in dollars? This can be the difference between an eager "yes" and a hesitant "maybe" in some places.

4. Hiring Choices: About 90% of US companies are comfortable hiring contractors. But before jumping on that bandwagon, weigh it against the perks of using an EOR to hire payroll employees. You might find a strategy that suits you better.

LatAm's Software Nearshoring Potential

To close up, navigating the tech recruitment landscape can be challenging, yet there's a beacon of opportunity in LatAm. As we reflect on recent shifts, it's clear that understanding mechanisms like EORs is paramount. They're not just tools; they're strategic assets. 

LatAm continues to present immense potential, standing resilient against industry upheavals. As we venture forward, we should focus on tapping into this region's rich talent pool and leveraging the resources.

If you're interested in further exploring your strategy and discussing it in more depth, feel free to contact me via email or connect with me on LinkedIn!

Stay in contact!

I hope you enjoyed this edition of the LatAm Recruiter! If you'd like to discuss hiring in LatAm, or get advice about the LatAm market, reach out via LinkedIn or email me at [email protected]. I'd be happy to help!

- Gino Ferrand, CEO and Founder at TECLA.