Hiring Latin American (LatAm) developers is one of the unique opportunities that allow businesses to take advantage of the huge economic, cultural, and timezone differential.
So if you’re building a remote team and not considering Latin American tech talent, you’re shooting yourself in the foot.
Latin American developers aren’t just skilled at their jobs, they also have a knack for making everyone around them better. There is a certain “Je ne sais quoi,” about the talent that comes from Central and South America. And research backs me up – The International Journal of Project Management found that LatAm teams showed a 15% higher level of perceived team cohesion compared to US teams. That’s a big deal for remote work.
Think about it: in a world where everyone is working remotely, would you rather have:
- A team where 20% of people feel disconnected (hello, US workers!)
- Or a group that naturally builds stronger connections and genuinely enjoys working together?
This growing trend is reflected in our client base, with the majority opting to hire from LatAm for their tech needs also due to cultural fit but mainly because LATAM offer competitive rates, providing cost savings of 30% to 50% compared to U.S. counterparts.
Now, since you have already decided to hire Latin American developers and want to learn how to do so from an expert’s point of view, keep reading to get actionable insights on how to hire and integrate Latin American developers into your team effectively.
Why Hiring LatAm Developers Works: The Data Behind the Magic
Looking to build a skilled tech team while optimizing budget and collaboration? Here is why hiring from Latin America is a good idea:
Team Orientation
GLOBE (Global Leadership and Organizational Behavior Effectiveness) is one of the biggest studies on workplace culture. They spent over a decade interviewing 18,000 managers in 62 cultures to learn about how people in different societies work with each other. And let me tell you, they found something really interesting about Latin America.
- Colombia takes the lead with a score of 6.09.
- Mexico is not far behind at 6.03.
- Brazil is showing up strong with a score of 5.98.
- Venezuela and Argentina round out the top with scores of 5.95 and 5.87.
- Meanwhile, the US? Well, they’re way down at 3.68 (ouch!).
That’s not just a small difference – we’re talking about nearly DOUBLE the team orientation.
Teamwork Front
On the teamwork front, Harvard Business Review conducted an interesting study on the performance of different cultures in global teams. They observed real projects for six months, evaluating criteria like execution speed and knowledge sharing, among other factors. Ultimately, they estimated that team performance from collectivist cultures, such as those in Latin America, had a 25% higher positive impact than individualistic cultures. That’s not just about feeling good – it’s about getting stuff done better.
Remote Workers? Even Better
According to the Journal of Cross-Cultural Psychology, Latino employees have a 20% to 30% better chance of forming relationships with their peers. And when it comes to remote work specifically:
- 72% of Latin American remote workers reported high satisfaction with team communication (Slack’s 2023 Remote Work Survey)
- Meanwhile, only 64% of US workers can say the same
- Even better: only 12% of Latin Americans feel disconnected from their teams, compared to 20% of US workers (Buffer’s State of Remote Work report)
Hiring Strategies for LATAM Developers
When it comes to hiring LatAm developers, you have multiple choices. The best approach depends on your project needs, budget, and desired level of involvement. But as a rule of thumb look for developers who have technical skills and can demonstrate problem-solving abilities, creativity, and adaptability.
Here’s a breakdown of the main hiring methods and the pros of each:
1. Leverage Specialized Platforms and Agencies tailored:
Partnering with recruitment agencies that specialize in LATAM talent can streamline the hiring process. These agencies have insights into the local job market, cultural nuances, and can assist in identifying candidates who align with your company’s needs.
- DistantJob is ideal for full-time hires, offering comprehensive HR services
DistantJob specializes in assisting businesses of all sizes in recruiting senior software engineers who meet their specific requirements and align with their company culture. We help companies to hire remote developers who not only satisfy technical expectations but also complement their organizational culture and workflows.
Beyond recruitment, we provide an all-in-one HR solution, including payroll or EOR services, managing all legal, financial, and administrative tasks.
- Toptal and Arc: Great for finding top-tier freelance talent.
Toptal offers an extensive network of freelance software developers, designers, and product managers, among other careers. They focus on providing a competitive and transparent hiring process that enables companies to quickly acquire the talent they need.
- Upwork and Fiverr: Suitable for project-based hiring and accessing a wide range of skill levels.
Fiverr is a popular freelance platform that offers over a million experienced software engineers suitable for different company needs.
Upwork is a leading freelance platform that helps companies find and hire skilled freelance developers. With Upwork, you can review the developer´s work samples and client evaluations and gain a clear idea of their level of expertise and past performance.
2. Understand the Labor Laws
Each LATAM country has its own set of labor laws concerning contracts, benefits, and termination procedures. Missteps in these areas can lead to legal complications.
A report highlights that 75% of companies face challenges in navigating the complex web of employment laws across different jurisdictions.
Before hiring Latin American developers, invest time in understanding the specific labor laws of the target LATAM country. Draft comprehensive employment contracts that align with local regulations, clearly outlining roles, responsibilities, and terms of employment.
You might also consider collaborating with legal professionals or recruitment agencies who specialize in the local employment landscape to ensure compliance and smooth onboarding.
3. Conduct Thorough Interviews and Assessments
When evaluating LATAM developers, employ a multi-faceted approach to assess their suitability.
Start with video interviews to gauge communication skills and cultural alignment, ensuring seamless integration with your team.
Next, implement targeted technical assessments or coding challenges to evaluate practical skills and problem-solving abilities in real-world scenarios. To gain deeper insights into their collaborative potential and thought processes, consider conducting pair programming sessions. This hands-on approach allows you to observe firsthand how candidates tackle complex problems, adapt to feedback, and work alongside team members.
By combining these methods, you’ll gain a comprehensive understanding of each candidate’s technical prowess, communication abilities, and cultural fit, enabling you to make informed hiring decisions that strengthen your development team.
4. Consider a Trial Period
Begin with a short-term contract or project to assess the compatibility of the LATAM developer with your team and work style before committing to a long-term partnership.
This approach allows you to evaluate their skills, communication, and cultural fit, ensuring a smoother collaboration in the future.
5. Offer Competitive Compensation and Benefits
While LATAM rates are generally lower than US rates, offering competitive packages is crucial.
When creating pay packages for developers in Latin America (LATAM), it’s important to do your homework on local salaries to make sure your offers are competitive and fair. Look at things like experience, specific skills, and the local economy. But don’t focus just on salary—consider offering a complete benefits package to attract and keep top talent. This could include health insurance, which is very important in many LATAM countries, opportunities for professional growth like attending conferences or training, and even stock options for key positions. By offering a package that covers both financial and career development needs, you’ll make your company more appealing in the competitive LATAM tech market and increase your chances of hiring and keeping the best developers.
6. Navigate Legal and Payment Considerations
Familiarize yourself with local labor laws and tax regulations. Set up reliable payment methods that account for currency differences and potential fluctuations.
Additionally, consider partnering with an Employer of Record (EOR) service to manage legal and administrative tasks on your behalf.
Which LatAm countries have the highest English proficiency among developers
While talent can be found throughout Latin America, certain countries stand out for English proficiency and larger talent pool.
- Argentina has the highest English proficiency in Latin America, making it a prime location for hiring software developers. Many developers in Argentina are fluent in English, particularly in major cities like Buenos Aires, which is known for its strong tech ecosystem and emphasis on English education in universities
- Brazil is the largest tech market in LATAM, known for its robust fintech and e-commerce sectors. While Portuguese is the primary language, Brazil has a significant number of developers with good English skills, especially in major cities like São Paulo and Rio de Janeiro.
- Mexico has a strong focus on software development and a growing startup ecosystem. Mexico ranks well for English proficiency among its tech professionals, with about 47.4% of developers speaking English at an advanced level or higher
- Colombia is rapidly emerging as a tech powerhouse with a business-friendly environment. Colombia also boasts a high level of English proficiency among its developers, especially in tech hubs like Bogotá and Medellín
- Chile is known for its stable economy and government support for tech initiatives. It has a moderate level of English proficiency among developers, particularly in urban areas where tech companies are concentrated
These countries not only provide access to a large talent pool of skilled software developers but also facilitate smoother communication due to their high levels of English proficiency, making them attractive options for companies looking to hire remotely in Latin America.
Overcoming Challenges in Hiring Latin American Developers
When looking to hire LATAM coders, several aspects must be considered to better assess the qualifications and potential of Latin American tech talent.
Diverse Educational Backgrounds
Many developers in Latin America might not follow the traditional educational path of obtaining university degrees. They often gain tech skills through online courses, self-learning, or local companies and universities. Expect resumes to include personal photos and practical courses and certifications over formal degrees.
Flexible Payment Methods
Navigating payments to Latin American countries can be complex due to varying currencies, with exceptions like Ecuador, Panama, and El Salvador, which use the U.S. dollar. Exchange rates play a crucial role and can impact how much employees actually receive. For instance, Argentina has both an official exchange rate and a higher “blue” market rate, potentially leading to significant losses for employees when paid at the official rate.
To mitigate these challenges, your company should consider flexible payment methods. Utilizing international payment platforms like Wise, Payoneer, and PayPal can simplify transactions and ensure that Latin American employees receive a fair amount, accounting for exchange rate differences and minimizing loss.
Paperwork & Tax Laws
Hiring developers from Latin America involves doing some extra work for paperwork that includes tax documentation, worker benefits, and more.
While this may seem like a lot of work, it’s only a matter of familiarizing yourself with local laws. You can also avoid all this and get the help of experts.
At DistantJob, we match you with your ideal candidate and handle all the HR tasks. We offer fully managed HR services tailored to your specific needs.
Conclusion
Hiring LATAM developers offers US companies a unique opportunity to access a wealth of tech talent while optimizing costs and fostering global collaboration. By understanding the LATAM tech landscape, implementing effective hiring strategies, and focusing on seamless integration, businesses can leverage this rich talent pool to drive innovation and growth.
Hiring remote developers from Latin America requires a tailored approach, as what works best can vary significantly from one company to the next. While some may find job boards perfectly suited to their hiring strategy, others like you might benefit more from partnering with a specialized IT recruitment agency.
While hiring skilled developers from Latin America provides many benefits, it still requires work and consideration of local laws, payments, and more.
At DistantJob, we focus on each candidate’s fulfilling all your requirements. In addition to helping you find, hire, and onboard, we also ensure you have a smooth HR experience. Give us a call if you want to know more, or visit us at our office in Montreal.
FAQ on Hiring LATAM Developers
The cost ranges from $10,000 to $50,000 annually, with hourly rates from $20 to $75, depending on experience and the specific country.
Brazil, Mexico, Chile, and Argentina are top choices, each offering a strong tech infrastructure and a large talent pool.
Use online job boards like LinkedIn, engage remote IT recruitment agencies like DistantJob, or use freelancing platforms like Upwork and Toptal.
