During this recent economic downturn, your company may be struggling to stay afloat. Some U.S. companies are experiencing massive layoffs, as VCs are slowing down their funding and startups are cutting costs to extend their runways.
While there are no easy answers in this unstable market, you can keep your tech projects moving forward by hiring remote tech talent from LATAM. In fact, IT salaries in LATAM are a huge opportunity for companies to survive (and perhaps even thrive) during the downturn.
Let’s take a closer look at how the economic downturn is impacting the tech industry and why remote tech hiring from LATAM is an excellent choice in the current market.
Interested in reading the full Tech Salaries and Benefits Trends Report? Download it here.
4 key trends for IT salaries in LATAM
1. Hiring top-tier professionals in LATAM costs around 40% to 60% less compared to equivalent roles in the U.S.
First of all, IT salaries in LATAM offer significant cost savings for U.S. companies – up to 60%! And though hiring LATAM talent has a lower price point, tech professionals in this region are highly talented, so you won’t have to sacrifice quality.
For this reason, U.S. companies have started to embrace the benefits of hiring in Latin America, fueling the demand for remote professionals here. This is true even for companies that have massively frozen or slowed down their hiring plans since early Q2.
2. There’s currently a 10% dip in median IT salaries in LATAM.
What’s more, median IT salaries in LATAM are showing a 10% dip between Q1 and Q2 of this year: from USD 60,000 to USD 54,000, according to our recent report.
This rapid 10% drop is likely the result of companies entering “survival mode” and offering lower compensation ranges. It’s also happening due to an overall lower volume of opportunities in the market.
Interestingly, the trend of a slightly lower median IT salary applies to a range of tech professionals. Even the top 75% paid developers have seen an 11.1% drop between Q1 and Q2. That said, this 10% reduction in IT salaries is likely to stabilize soon as the LATAM talent pool keeps becoming more attractive to U.S. companies.
3. Companies are offering better benefits, attracting candidates in ways beyond IT salaries.
It’s important to note that companies are recruiting engineers in LATAM with increasingly better benefits. For example, some notable boosts in benefits compared to last year include:
- 90% of companies are now delivering career growth for their team members.
- 86% of companies are planning company-wide gatherings and retreats.
- 50% are offering Employee Stock Options, Equity, or some form of Stock.
- 36% of companies are currently providing payment in cryptocurrencies.
- New benefits have come onto the map, such as tuition reimbursement, health insurance reimbursement, gym membership, etc.
Overall, U.S. companies are getting creative and leveraging benefits in order to appeal to IT professionals beyond salary. For companies looking to attract top LATAM engineers, it’s essential to design more competitive job packages by offering these key benefits.
4. Optimized recruiting and hiring processes are essential to recruiting LATAM engineers today.
During this market slowdown, hiring IT professionals in LATAM is a great solution for companies looking to extend their runways while recovering their profitability.
Yet, it can be challenging to recruit engineers from this region if you don’t have the expertise. That’s why companies should optimize and customize their recruitment process in LATAM through an expert partner like Nexton. In this way, they’ll have a better chance of capturing and retaining the best talent in Latin America.
Choose Nexton to hire LATAM engineers
At Nexton, our numbers speak for ourselves: 200+ tech companies have already successfully hired LATAM engineers –and you could be next! By hiring IT professionals in LATAM, your company can:
- Extend its runway
- Cut costs
- Continue to develop the product or product features
- Continue to meet company goals and deadlines
- Recover profitability
- Integrate top-skilled engineers in a cost-effective manner
- … and more!
Get in touch with our Nexton team to learn more about hiring LATAM engineers and reaping the cost benefits today.