The Pros and Cons of Hiring in South America

Keep in mind that Spanish is the official language in most of Latin America countries.
The Pros and Cons of Hiring in South America

In the last years, Latin America has gradually evolved into an exceptional market for doing business. Its region encompasses some of the fastest-growing economies in the world, such as Mexico, Brazil, Chile, the Dominican Republic, Uruguay, Costa Rica, Panama, Colombia, among others. According to the World Bank Group's report, in the past year, economies in Latin America and the Caribbean have improved their ease of doing business, carrying out 25 reforms that help foreign companies to register and comply with labor market regulations efficiently.

So, if you seek to start a business in Latin America, finding the best talent for your company's needs might represent a challenge. That's why it is crucial to pay close attention to the pros and cons when hiring personnel in Latin America.

Pros of Hiring in Latin America

If you are looking to hire skillful talent, then Latin America can be the ideal place for finding a talented and well-educated workforce to favor the growth of your company. In this region, you will encounter a high number of talent actively seeking employment and ready to offer you enriching ideas for the business.

The quality of education in many Latin American countries―thanks to improvements in educational programs― has enabled students to acquire the right work skills and knowledge.


Cost-effectiveness is one of the main aspects you should consider when expanding abroad and hiring talent in new markets. In this case, Latin America is considered as one of the regions with the lowest labor costs in comparison with most of the European countries and the United States.

Considering that in Latin American, you can also find qualified and experienced talent, then it becomes a cost-effective region for your business expansion.

Cons of Hiring in Latin America

Language and Culture Barriers

Keep in mind that Spanish is the official language in most of Latin America countries (except for Brazil as they speak Portuguese). Therefore, if you are not proficient in the language, it would be complicated to establish a proper relationship with your workers, especially because the majority of Latin American countries have a low level of English skills.

Even more, you must understand and comprehend the culture of your destination, taking into account that each LATAM country has its own manners and customs.

Local Regulations and Labor Laws

In order to hire personnel in Latin America, you must get to know and comply with every local regulation and labor law, including particular holidays, minimum wages and working hours, employee benefits, etc.

For example, if we consider that three of the top five countries with the highest working hours are from Latin America―Mexico (1st), Costa Rica (2nd), and Chile (5th)―it is required to think about another kind of employment benefits to retain the best talent.

An international PEO for your hiring process

For all these cons, you should find experienced local partners that will help you with the hiring process in Latin America. In this case, an International PEO will take care of your local talent―from preparing the job offer to terminating an employment relationship. All the hiring processes are prepared and organized in compliance with local labor laws and regulations.

For better employee engagement and retention, with an International PEO, you can offer them additional and outstanding benefits such as life and private medical insurance, and even car leasing.

Hiring personnel in Latin America comes with some challenges and advantages, but with the right International PEO partner, you can get the best out of your foreign investment.

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