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🌎 THE LATAM RECRUITER - April 2023 Issue

In this issue: The challenges faced when hiring from Latin America's talent pool, the latest trends in remote work, and tools to enhance your team's skills.  

Latin America's Tech Talent: Challenges and Opportunities

The Latin American tech market boasts highly skilled professionals, but unique challenges exist for hiring due to country-specific legislation, regulations, and cultural differences. 

Research by Daxx and Safeguard Global reveals Latin America as a top destination for North American tech firms seeking software developers. With 80% of HR leaders recognizing the importance of operating in different countries, talent acquisition in Latin America is critical. 

Companies must consider talent availability, labor costs, education, regulations, cultural norms, and the local market to succeed in hiring tech talent from Latin America.

1. Cultural Differences: How They Impact the Workplace

Recruiting in Latin America can be affected by language and culture. There are 33 unique countries in the region, each with its history and identity. A study by Safeguard Globals found that only 14% of companies surveyed have HR representation in every country where they have staff.

Research by McKinsey & Company shows that diverse teams can improve business performance, including revenue growth and profitability. The World Economic Forum study found that companies with diverse teams are better equipped to navigate complex and changing markets.

2. The Significance of Establishing a Personal Brand

A solid personal identity is crucial for professionals seeking work abroad and benefits the company. According to a recent survey by FrontierView talent management, 81.2% of HR executives in Latin America believe their company's brand is the most critical factor in attracting talent. 

Knowing an employer's expectations, mission, future, and work culture is essential for potential candidates. Companies considering these factors can attract top talent and build a successful remote team.

3. Remote Hiring Contributes to Increase in Salaries

According to Deel's Global Hiring Report, salaries worldwide are increasing. Still, Latin America has lower wages due to the region's lower cost of living. Despite this, countries like Brazil, Argentina, and Mexico have seen significant salary gains. The region has a highly skilled and competitive workforce. Companies should offer comprehensive benefits packages alongside salaries to attract top talent in Latin America.

4. The Impact of Perks

In Latin America, a competitive salary is significant. Still, intangible benefits like vacation time, benefits, and growth opportunities are equally crucial for attracting top talent. Being transparent about your corporate culture is favored by candidates. Also, focus on creating a workplace culture that fosters growth and innovation. Remember to consider the power of intangible benefits when hiring in Latin America.

5. Market Opportunities

In the past 15 years, available labor in Latin America has contributed 80% to GDP growth. The region is expected to experience a drop in employment growth of less than 1.1% by 2030, offering opportunities for business expansion. This is unlike countries facing declining populations.

Latin America has the second-highest growth of developers globally, with Brazil, Mexico, Argentina, and Colombia having the largest developer pools. With an estimated annual increase of 1 million developers worldwide, the region has enormous growth potential.

📌 Future of work gems.

Tools to boost your remote team!

• 📝 Rippling: This lets you conveniently handle various aspects of your employees' management, such as payroll, benefits, expenses, devices, apps, and more, all in one place.

• ✍️ Effy: Simplifies performance reviews with templates and an AI summarizing feature, allowing easy employee submission through Slack.

• 💬 Camaradly: It streamlines annual reviews and promotes authentic conversations for feedback, engagement, and growth. It's a culture platform to enhance employee engagement and performance.

💡Key Industry Insights. 

• 💬 The Wall Street Journal reported on a remote work trend where jobs are outsourced overseas due to labor shortages and higher wages. This practice saves organizations 40% in labor costs. It can help retain employees in a competitive labor market by allowing them to relocate while keeping their jobs. According to labor consultants, more companies are turning to this approach.

• 🔍 Alibaba has announced the launch of its own AI chatbot, Tongyi Qianwen, which is similar to ChatGPT. It can turn meetings into notes, write emails, and draft proposals. Other tech giants such as Google and Baidu have also released AI models and chatbots. AI's popularity has grown since ChatGPT's release, and a Goldman Sachs report estimated it could replace 300 million full-time jobs.

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.