November 15, 2022

How to hire remotely in Latin America

Hiring in Latin America increased exponentially in 2021, and the trend has continued in the majority of the region's countries. Several US-based companies, small-to-medium businesses and startups, have identified the benefits of using LATAM workers. Let's find out how you can hire in Colombia in the best, simplest, and legal way!

hire remotely, latam
Yes, a US-based company can hire a remote worker abroad! Learn about the best Latin American countries for hiring, how to do it legally and stress-free, and the benefits of hiring a remote worker.
Linda Saleri
Recruitment Specialist

How to hire remotely in Latin America

The current economic situation has increased the attractiveness of international recruiting for businesses. Growth in the worldwide labor force is being sustained by a number of factors, including the increasing popularity of remote work and the availability of a huge pool of qualified candidates.

In 2021, hiring in Latin America rose by 286%, and this upward trend has continued in the majority of the region's countries.

Marketing and Sales experts are in particularly high demand in nations like Colombia, where the job market is showing signs of improvement.

The advantages of employing LATAM labor have been recognized by several US-based companies. There are a lot of advantages for small businesses and startups to hiring people in the same time zone and in the same region, including the fact that it's cheaper.

Colombia is the fifth largest country in Latin America, and we will examine the benefits and challenges of hiring from this region in this article.

Colombia, one of the best countries to hire people remotely.
Survey of the Country:

  • Population of fifty-eight million  (2020)
  • Bogota is the capital of Colombia
  • Pesos, the currency of Colombia (COP)
  • The average annual income per citizen is 5,332.77 US dollars (2020)
  • The Spanish language is used as the official language of the country.
  • English proficiency
  • Colombia Assume GMT-5 as the standard time zone.

After Brazil and Mexico, Colombians make up the region's third-largest labor force in 2019. If you're looking to fill available positions, you should consider Colombia's extensive talent pool.

The benefits of hiring a remote worker from Colombia 

  1. The multiplicity of qualified talents
    Tech experts of all levels of education and expertise can be found in Colombia.

The National Learning Service (SENA) in Colombia provides free courses and programs in high-demand fields like business, technology, design, and administration. The software is widely used in the area, but it has yet to get the attention of national tech giants.

Also, two Colombian universities—Universidad Nacional de Colombia and Universidad de los Andes—are among the continent's top 15 educational institutions.

  1. Cost efficiency
    Colombia has a lower cost of living than the United States, Canada, and the majority of European Union countries.

    Employing someone in Columbia is much more cost-effective for a firm outside of LatAm than it would be to hire the same type of worker in the company's home nation. But this chance may soon be gone, as the rise of remote work continues to raise wages in parts of the world that used to be poor.

  2. Working hours overlap
    Working with the US is simplified by Colombia's time zone.

    The time zones of the United States' west and east coasts will coincide with those of your Colombian team. You won't be restricted to asynchronous methods of communication but can instead arrange for meetings to take place during normal business hours.

  3. Work Habits
    The Colombian people have a stellar reputation for their dedication, ingenuity, and perseverance on the job.

    Colombians are quick thinkers since they are accustomed to working under pressure and handling emergencies. Because of their warm and friendly culture, Colombians are great teammates and contributors.

How much does it cost to hire talent in Colombia?

The cost of staffing in Colombia varies with the position and industry in which the individual is employed. The following positions are among the most sought after:

  • Marketing (branding, growth, SEM, SEO)
  • Sales (sales development reps, account managers)
  • Tech (Project Managers, UI/UX designers, etc.)
  • Other

Job-seeking Colombians who apply to organizations abroad often want above-average pay. They want salaries that are competitive internationally even if they remain in Colombia. An increased salary is expected if the applicant is able to speak both English and another language fluently.

Here are some typical annual compensation ranges (in US dollars) for in-demand occupations:

  • Marketing Specialists: $24,000 - $50,000 annually
  • SDRs: Between $18,000 and $30,000 annually (without commissions)
  • UI/UX designers: between $30,000 and $54,000 annually
Legal aspects to take into account

Hiring international employees is complex because of the legal protections, taxes, and benefits. To reduce the legal implications of hiring employees in Colombia, you can opt to hire independent contractors instead.

A "services agreement" is the local term for this kind of deal in Colombia (in contrast to an employment agreement). The term "services agreement" is used to describe the practice of contracting out labor to independent third parties in exchange for greater freedom and payment for actual results rather than mere time spent on the job. 

Many foreign companies prefer hiring contractors because:

  • You don’t need to set up a Colombian entity
  • You have more currency flexibility (as it’s forbidden to pay employees in foreign currency)
  • Social security contributions fall on the contractor
  • Documentation for the agreement is minimal

The younger workforce typically prefers working as contractors for several reasons:

  • They prefer the flexibility service agreements afford them 
  • They prefer getting paid in US dollars or other foreign currencies, which is not legal for employees
  • They don’t need employment contracts as proof of income because they get loans from the bank less frequently
  • They use pension funds less frequently and prefer liquid cash

At Outshore we have different services that could help you finding the best talents in the Latam market, book now a discovery call!