Employer of Record in Latin America
Establishing a distributed remote team in Latin America comes with challenges like hiring the right talent, managing their payroll, staying compliant with local laws, and more. These tasks are essential, but also very daunting.
With an Employer of Record (EOR) in Latin America, you can now have a team of your own without setting up a local legal entity. Skuad is an Employer of Record that simplifies hiring and compensation of full-time employees in a foreign country.
Key Payroll and Employment Trends and Stats in the Latin America
Human Resource (HR) strategy work in Latin America is in high demand, with payroll being the key focus. To gain efficiency in their current Latin American (LATAM) operations, an increasing number of global and regional corporations are consolidating administration or shifting to shared services.
- The LATAM payroll market is rapidly developing.
Several years ago, Latin American in-country payroll providers used heterogeneous systems that were only cost efficient due to low-priced labor pools. Companies in LATAM are currently focusing on automating and consolidating payroll.
- Employers in the United States desire to spread their shared services beyond their borders.
In addition, many firms who have implemented a Global Business Services model in Finance and IT are wanting to expand their assistance to back-office activities such as payroll.
- New labor rules add to the complication.
Legislative changes are regular in Brazil, Argentina, Mexico, and other LATAM nations, necessitating modifications to HR administration, compensation calculations, and payroll regulatory reporting, all of which are complicated and prone to ambiguity. Hiring LATAM payroll providers for assistance with tax services, banking, and gross-to-net processing and reporting may be quite beneficial in such situations.
- According to Gallup's State of the Worldwide Workplace: 2021 Report, 45 percent of people in the region say the epidemic has had a substantial impact on their lives, and the proportion of employees who have lost their jobs or businesses (31%) is close to the global average.
- Over half of those working in Latin America and the Caribbean during the outbreak lost pay (57%) and worked fewer hours (57%) while 58% temporarily stopped working.
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How does an employer of record (EOR) work?
Skuad is an Employer of record in Latin America, which serves as a Global HR Platform for companies looking to hire and pay remote talent. Partnering with an employer of record allows organizations to legally and effortlessly hire the best talent in Latin America, without setting up a local legal entity. Skuad manages the hiring and onboarding of employees, runs payroll and provides statutory benefits, gives ongoing legal and HR support, and much more.
Skuad provides Employer of Record services in the following countries of Latin American Region:
Talk to our People Ops experts to discuss your requirements and see how Skuad can help. Book a demo today!