An Unconventional Way To Increase Profitability by 30%

It’s no secret that great talent is the key to a company’s success. In fact, a study from the Harvard Business Review shows companies with top-performing employees experience 27% higher revenue per employee than the average business.

This number creeps even higher after implementing some select practices, like employee engagement initiatives.

Unfortunately, many companies struggle with hiring and end up making costly mistakes that hinder their growth and profitability. The cost of making any hire can be three to four times their annual salary. A bad hire can increase this figure significantly due to expensive errors and poor cost efficiency.

But what exactly constitutes a bad hire? It can be someone who:

• Is not a good fit for the company culture
• Lacks the necessary skills or experience
• Simply does not perform well in their role

And it happens more often than you might think. Research shows that nearly 75% of companies have made bad hires at some point.

These mistakes cost companies a significant amount of money, time, and resources. On average, it takes six to nine months of an employee’s salary to find, hire, and train your faulty employee’s replacement, a lengthy and involved process for your entire company.

The link between a company’s hiring practices and revenue is undeniable. Business success relies heavily on having the right people in place to execute your mission and strategies. That’s why you must have a solid and effective hiring process that ensures you hire top-performing workers at all levels of your organization.

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Why Nearshoring Is a Step in the Right Direction

With the current talent shortage in the US job market, companies are finding it increasingly difficult to fill open positions with top-performing candidates. This is especially challenging for specialized roles that require specific skills and experience.

Take Tribu, for example. The San Antonio-based creative agency desperately searched for a web designer with very particular experience. The candidate needed:

• Graphic design talent
• Experience with no-code development platforms like Webflow and Bubble.io
• A grasp of HTML/CSS and Java

They couldn’t find one in the US. The candidate pool was extremely limited, and the ones who did fit the bill were snatched up by bigger corporations with more resources.

It’s a common story. A limited talent pool leads to a longer time to hire, as companies have to sift through a larger number of candidates to find the right fit. It also creates high competition for qualified talent, making it harder for smaller companies to attract and retain top-performing workers. 

All of these challenges ultimately impact your company’s bottom line. A longer time to hire delays productivity and increases costs for training and onboarding new hires. 

High competition drives up salaries and benefits, adding additional expenses to the hiring process. Losing top-performing candidates to larger companies means missing out on potential revenue and growth opportunities.

Nearshoring, also known as nearshore outsourcing, is a powerful solution that involves hiring talent from a nearby country or region. In the case of Tribu, it meant looking to Latin America (LatAm) for their designer. 

Here’s why LatAm is attractive to US businesses:

• Similar time zones: Hiring from LatAm means working with teams that are in a similar (or even the same) time zone as your own. This eliminates the challenges of coordinating between different time zones and allows for better communication and collaboration.
• Similar cultures: Nearshoring to LatAm offers cultural similarities that make it easier for teams to work together and understand each other’s perspectives and ways of working.
• Proximity: With LatAm being a relatively short flight away from the US, it is easier for companies to visit their nearshore teams or for nearshore staff to visit the US team. This strengthens relationships and promotes better teamwork.
• Expanded talent pool: Nearshoring opens up a new pool of qualified candidates that may not be available in the US. English proficiency rates in LatAm are higher than in many other regions around the world, and higher education enrollment rates in the region are rising rapidly, making it an ideal location to find top-performing workers.

But let’s face it. Business owners are most interested in cost savings. 

Companies can save up to 70% in hiring costs by nearshoring to LatAm. For a digital consulting firm like Delve, that meant nearly $500,000 in annual savings. They outsourced three positions, realized the benefits, and ended up filling another seven roles with LatAm talent. 

And these weren’t just customer support or virtual assistants—they were specialized roles, including:

• Senior Programmatic Media Trader
• Marketing Automation Specialist
• Data Scientist
• Ad Ops
• Marketing Data Agent
• Senior Marketing Data Agent
• AdTech Solutions Consultant
• Digital Marketing Consultant
• Team Leader

Each position represents significant savings over local hires, who come with stiff competition, higher salary demands, and longer recruitment periods. Because of lower living costs and a huge talent pool, LatAm professionals have significantly lower salary expectations than their US counterparts. 

To give you a better idea of the difference, let’s compare the average annual salaries for a few commonly outsourced positions:

You can see how the savings can quickly add up, and that’s not even counting the time and effort saved by recruiting with a LatAm recruitment specialist. 

How the Right Nearshore Hiring Partner Can Help

In spite of the many benefits of nearshoring, it’s critical to do it properly to take full advantage of them. Partnering with a LatAm talent specialist like Near can help companies avoid common hiring mistakes and accelerate the hiring process while still saving up to 70% in costs. 

Here’s how:

Specialized knowledge

A LatAm talent specialist has in-depth knowledge and understanding of the region’s job market, including cultural nuances and salary expectations. This ensures that companies are targeting the right candidates for their open positions.

Streamlined process

With experience and expertise in recruiting from LatAm, a specialized agency like Near has a streamlined process for quickly finding top-performing candidates. This saves companies time and resources while ensuring they are presented with highly qualified candidates.

R\nd, a web development company from San Clemente, reduced their hiring timeline to just two weeks by working with Near. That represented 15 to 20 saved recruiting hours for every role. 

Since they are a relatively small company, their regular hiring process included the CEO. By partnering with a talent agency, the CEO could reinvest that time into growing the business instead of vetting candidates. 

Local presence

Near has a presence in LatAm, which means they have a large network of top talent and can easily connect with potential candidates. This eliminates the need for companies to spend time and resources trying to find suitable candidates.

Pre-screened candidates

Near pre-screens all candidates before presenting them to their clients, ensuring that only the most qualified individuals are considered for open positions. This reduces the risk of hiring mistakes and increases the chances of finding the right fit for your team.

Digital Wildcatters looked everywhere for an Outbound Sales Specialist but repeatedly met high salary demands or mismatched job expectations. Near’s pre-screened candidate pool and introductory videos immediately gave them a shortlist and reduced their recruiting timeline by 60%. 

Quick recruitment timeline

Near has a proven track record of successfully placing candidates in as little as two weeks, compared with the average time to hire of 44 days. This means companies can fill open positions faster and increase productivity sooner.

How To Get Started

Hiring the right talent is crucial for any company’s success. But traditional hiring methods can be time-consuming and expensive, hindering your ability to build a high-performing team.

Companies like Near are a game-changer. By partnering with us, you can easily hire top talent from LatAm while saving up to 70% in recruitment costs. Our specialized knowledge and streamlined process can help your company avoid hiring mistakes and accelerate the hiring timeline.

If you want to get started with nearshore hiring, talk to a LatAm recruiting expert who will help you build a tailored hiring plan that guarantees success. We’ll get you nearer to your success story than ever before.

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