In our Q3 '2022 Compensation Report, we predicted a progressive increase in the demand of LATAM talent by US Companies as a solution for the problem brought by the instability of the economic recession. This trend continues to persist in our Q4 update after we interviewed 420 senior tech professionals and gathered a ton of interesting insights to share with you. Check out some of the highlights from our findings!
Many US companies discovered the benefits of hiring from LATAM in 2022 –and thanks to the cost-effective talent acquisition Latin American tech specialists offer, this trend will increase even further in 2023. In the latest Nexton’s Tech Salary and Benefits Trends Report, it’s mentioned that LATAM professionals' expected salaries are in the range of 40-60% less than their US counterparts, matching seniority and technical proficiency level. Though we see a potential narrowing of this gap during 2023 as the hiring market becomes more competitive, the Latin American talent pool will continue to remain budget-friendly in comparison to the U.S. talent pool for the foreseeable future.
Source: 2023 Tech Salaries and Benefits Trends: Q4'22 Report
Budget is not the only favorable factor taken into consideration by U.S. companies when recruiting remote talent in LATAM. The boom in the Latin American tech industry throughout the last decade has led to important growth in the playing field of specialized tech, making it the most favored location for nearshore developer hiring, with a better time zone compared to Asia and Eastern Europe. Variability and diversity in tech positions are highly sought after by U.S. companies and plentiful in Latin America’s talent pool. Niche roles like Mobile Developer, Product Manager, and Tech Leader can all be found in LATAM; as well as some roles more commonly open, like Back End Engineer, Data Engineer, Data Scientist, DevOps/SRE Engineer, Engineering Manager, and Front End Engineer –all of which were included in Nexton’s Q4 Compensation Report.
As we’ve mentioned previously, LATAM professionals historically expect less from their benefits and salaries than their U.S. counterparts; which has created an important gap over the years as remote hires have become increasingly popular among U.S. companies. However, with a competitive market comes more competitive compensation and contract offers. Throughout 2022, long-term contract recruitment for tech professionals was on the uptrend. This is good news for every member of a remote team, because the salaries offered in the competitive market become more attractive. Another way U.S. companies are working to close the gap is by offering more benefits. Our data shows that benefits like equipment and bonuses have increased during Q4, which was likely a necessity for efficiency and communication after 100% remote work increased even further in Q4. As always, at Nexton, we’re helping companies attract the best quality of remote talent possible, and helping the talent access these amazing opportunities.
Source: 2023 Tech Salaries and Benefits Trends: Q4'22 Report
Like what you’ve read so far? Check out the in-depth version of all these insights and more, along with clear and organized data in Nexton’s 2023 Tech Salaries and Benefits Trends: Q4’22 Report.