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Companies - Hiring Remotely - Tue Oct 25 2022

Key Things to Keep in Mind to Hire Remote Engineers from Latin America

The Latin America software industry is a huge opportunity for U.S. companies seeking top-tier tech professionals.

Even so, it’s important for you to understand the LATAM talent market, as it differs from the U.S. in several ways. To help you get a deeper sense of the Latin America software industry, our experts at Nexton have put together six must-knows to hire remote engineers from this region.

Key considerations to hire remote engineers in LATAM

Leveraging the Latin America software industry is an excellent idea for your tech hiring needs. Here are key considerations to keep in mind as you begin this process.

1. LATAM developer salaries are much lower –even for senior talent.

To start, you can get serious budget savings when outsourcing to Latin America. Though the exact cost will depend on the developer’s experience level and specialization, overall the Latin American tech talent pool is much more cost-effective for both senior and junior levels.

According to our 2022 Compensation Trends for Latin American Engineers, the median annual salary for senior engineers in LATAM is $75,000 USD, compared to the U.S. median annual salary of $140,000 USD. In other words, this is nearly double the cost for the same high quality of talent.

2. LATAM has a largely untapped talent pool.

What’s more, the Latin America software industry is largely untapped, which can help you discover the ideal tech professionals. LATAM developers are known for giving U.S. companies a few key advantages, such as excellent cultural know-how, top English proficiency, matching time zones, and strong industry expertise.

LATAM recruitment cycles also tend to be more stable compared to the U.S. With a rampant developer shortage in the U.S., it’s common for tech professionals to be constantly poached. However, in Latin America, recruitment is more reliable and accessible, with candidates keen to land a job with a U.S. company in the long term.

It’s usually less expensive to recruit candidates in Latin America as well, especially if you work with a talent partner that optimizes the process on your behalf.


3. LATAM developers aren’t typically job-hoppers.

Unlike the U.S. tech talent market, where developers tend to job hop to more lucrative opportunities, the Latin America software industry is steadier.

There are a few reasons why LATAM software engineers are more dedicated to their jobs and have significantly higher retention scores compared to U.S. talent, including:

  • Getting paid in USD – as well as having lower costs of living in general – means that LATAM developers are interested in sticking with a U.S. employer.
  • Benefits packages offered by U.S. companies often beat out local peer jobs in tech.
  • LATAM talent partners tend to look for ideal candidate matches, leading to long-term relationships.

Of course, to reap the benefits of the Latin America software industry, it’s essential to create competitive job packages that are appealing to LATAM developers. To do this, you may need the assistance of a talent partner, as you’ll need to understand regional salary trends, local talent priorities, and more.

4. LATAM engineering backgrounds will look different.

When outsourcing to Latin America, you should also be aware that LATAM engineering backgrounds may be distinct from their U.S. counterparts. To start, LATAM will have unique local universities, as well as a range of startups and companies that you may not be familiar with.

In addition, many successful professionals in the Latin America software industry started their careers in less conventional ways. For example, it’s common for LATAM tech resumes to list coding courses, certificates and freelance work as core experience –instead of more traditional university degrees or jobs with multinational firms.

That’s why you may need an expert to parse different engineering backgrounds and identify the top candidates to hire remote engineers. This is especially true because LATAM resume formatting differs in several ways as well.


5. LATAM developers may not be used to U.S.-style skill tests and interviews.

To hire remote engineers from the region, you should also tailor your skills tests and interviews with LATAM conventions in mind. The Latin America software industry rarely uses skill tests (such as live coding challenges), so engineers here may not be as prepared to showcase their skills this way as U.S. developers.

In addition, interviews in LATAM are often long one-time sessions instead of multiple rounds with different team members. Engineer interview questions in the region also typically focus on personal traits, instead of formal questions such as “Tell us about a time you failed”.

For this reason, it’s a good idea to work with a talent partner that specializes in preparing developers for U.S.-style skills tests and interviews, so you have a better sense of the talent you’re recruiting. At Nexton, we help talented candidates get ready for U.S. tests and interviews, so they can demonstrate their top skills and seniority.

6. LATAM engineers may require some extra paperwork to comply with local labor and tax laws.

Finally, outsourcing to Latin America entails some extra paperwork including tax documentation, payment declarations, worker benefits, and more. Hiring remote engineers in LATAM may seem a bit daunting if you don’t have a local expert to guide you through this process. To ensure you’re fully compliant, you can work with a talent expert like Nexton to handle these hiring logistics.


Maximize your LATAM recruitment efforts with Nexton

The Latin America software industry is ideal for U.S. companies eager to hire first-rate tech talent. As you get started with recruitment in the region, you can utilize our tips above to successfully hire remote engineers from Latin America.

To support your recruitment efforts, you may benefit from partnering with us at Nexton. We specialize in Latin American tech talent and can help connect you with impressive remote software engineers. Get in touch today!

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Blog Team
Nexton empowers companies connecting them with the strongest engineering talent in LATAM.

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