Hire in Latin America (LATAM)

Hire in LATAM

Are you planning to hire in LATAM?

Building a global remote team in today’s job market is one of the key identifiers of growth as it expands an organization’s global reach and consumer base. Another sweet spot to going international is the access to building your team from the global pool of top talent.

While there are many benefits to building a global remote team, the process of hiring in Latin America (LATAM) and building a global team can be complex, challenging, and time-consuming.  However, with the aid of an Employer of Record like Skuad, you can hire in LATAM and enjoy the numerous benefits of growing a global remote team with no hassle.

Employment stats in LATAM

Latin America is the current big thing for local and global ecommerces who want to reach a market where ecommerce is predicted to increase 30% per year through 2025, thanks to a rising digital-savvy population, booming smartphone penetration, and local fintechs. Meanwhile, the advent of new alternative payment methods, whether locally or not, has profoundly revolutionized Latin Americans' relationship with payments by providing them with the most fundamental things: access and inclusion.

• According to Gallup's State of the Worldwide Workplace Report, 45 percent of individuals in the region believe the pandemic has had a significant impact on their life, and the number of employees who have lost a job or business (31%) is comparable to the global average. 
• Over half of individuals working in Latin America and the Caribbean during the epidemic have lost wages (57%) and worked fewer hours (57%) while 58 percent have temporarily ceased working.

COVID-19 not only put a burden on the region's formal economy, but it also put the informal sector – which accounts for almost half of all jobs in Latin America and the Caribbean – under pressure. 

• According to the Center for Strategic and International Studies, real GDP shrinkage is expected to be approximately 8.1%, greater than in any other area of the world. However, unlike in other economic zones, the region's restricted development expectations, along with the economic and social sufferings caused by the virus, formed a perfect storm.

Employee involvement fell by 7% points as the economy weakened, returning to 2015 levels of 24%. From Mexico through Argentina, practically every nation in the area had the world's greatest declines in employee engagement, with the exception of Central America.

Hire with Skuad‍

Skuad’s global HR platform enables you to hire, onboard, manage payroll and ensure full compliance with the employment laws and tax in over 150 countries. Whether you plan to hire full-time employees or contractors, Skuad enables you to hire in LATAM without requiring you to set up a subsidiary, thereby saving time and money while ensuring full compliance with the employment laws and tax regulations.

Hire your dedicated team of professionals in Latin America with the right set of skills that suits best for your organization with the help of Skuad experts.

Hire, onboard, pay, and manage your remote team in LATAM.

• Belize
• Costa Rica
• El Salvador
• Guatemala
• Honduras
• Mexico
• Nicaragua
• Panama
• Argentina
• Bolivia
• Brazil
• Chile
• Colombia
• Ecuador
• Paraguay
• Peru
• Uruguay

To build a global remote team and hire in LATAM, talk to our People Ops experts today, Book a Demo with Skuad.

FAQs

How to hire employees in Latin America?

Companies can hire employees across Latin American countries either by establishing a local legal entity in each country or partnering with an Employer of Record (EOR). An EOR enables companies to employ workers legally without setting up a local subsidiary. It handles employment contracts, payroll, taxes, statutory benefits, and compliance with local labor laws.

What is the minimum wage in Latin America?

Minimum wage levels vary widely across Latin American countries and are usually set by each government. For example:

• Argentina: Around ARS 308,200.00/month (approx. USD 271)
• Brazil: BRL 1,518/month (approx. USD 268)
• Colombia: COP 1,623,500/month (approx. USD 390)

These figures change annually and may differ by region or industry.

What are the employment laws in Latin America?

Labor laws in Latin America tend to be worker-friendly and differ by country, but they commonly include workweeks of 40 to 48 hours, overtime pay, and mandatory paid vacation ranging from 10 to 30 days annually. Most countries also provide public holidays, maternity and paternity leave, require written employment contracts, and enforce notice periods and severance pay for terminations. Employers are generally required to contribute to national social security systems.

How can a U.S. company pay employees in Latin America?

U.S. companies can pay employees in Latin America through several approaches:

• Establish a local entity and run payroll in local currency
• Use an Employer of Record to manage compliant payments and filings
• Partner with global payroll providers who offer multi-currency processing and tax compliance

How to obtain a work permit in Latin America?

Work permit procedures in Latin America vary by country but usually require a local employer to sponsor the foreign worker. The process involves submitting an employment contract, proof of qualifications, and personal documents like a passport, police clearance, and medical certificates. After approval, the worker must apply for a visa or residence permit. Processing times, eligibility criteria, and permit quotas differ depending on the country.