The practice of nearshoring from the United States to Latin America (LatAm) is undoubtedly on the rise. Thanks to benefits like cost savings and time zone compatibility, US companies are hiring far more remote talent from countries like Mexico, Brazil, and Argentina than in 2020.
But how can you start taking advantage of LatAm’s large pool of skilled talent? If you have questions about the process of nearshore outsourcing, you’re not alone—many companies face the same challenges when hiring from this region.
In this article, we will share the answers provided by Near’s CEO, Hayden Cohen, to the most frequently asked questions about nearshoring to LatAm.
All of the following information comes from firsthand experience in helping hundreds of US companies hire top talent from LatAm. We’ll provide guidance on a wide range of issues, including how to start the process of nearshoring, set up remote talent for success, and avoid getting scammed.
Top 10 Common Questions About Nearshore Hiring in LatAm
Here are 10 of the questions we hear most about hiring nearshoring in LatAm, along with detailed answers based on our experience helping US companies hire top talent in the region.
Question #1: Why is everybody suddenly talking about hiring globally and nearshoring and offshoring?
The sudden surge in remote hiring began during the pandemic. At that time, companies learned that employees at virtually any level could work remotely from their homes while remaining productive.
It also led to shifts like “The Great Reshuffle,” with millions of workers moving to other jobs. This has resulted in labor shortages in many industries, making it difficult for organizations to fill open roles.
In response, many US companies have expanded their talent pool outside the US.
Additionally, hiring globally offers advantages like lower costs for equally qualified professionals, allowing companies to build high-performing teams within their current budgets.
Question #2: Should I hire from LatAm, Canada, the Philippines, India, or Eastern Europe? How do I evaluate which regions make sense?
Hiring remote talent from India provides access to a larger pool of professionals, especially in technical industries like IT and engineering, at competitive labor costs. Indian professionals are known for their strong technical expertise, making them ideal for tech-driven roles.
The Philippines offers excellent English proficiency and is renowned for its customer service skills, making it a good choice for outsourcing call centers. Filipino professionals adapt well to different cultural contexts, enhancing team integration and effectiveness.
Nearshoring to LatAm provides time zone alignment with the US, facilitating real-time collaboration and significant overhead cost savings. The region provides a highly educated workforce with strong English skills, making it an attractive option for all types of roles. For US companies, it’s often easier to integrate hires from nearshore countries.
All of these regions come with their own pros and cons, and the best choice depends on the specific situation of your company. As a business owner or department manager, you need to consider the following questions:
- Do you need your new hire to work synchronously or asynchronously?
- What is the necessary English level for the role?
- Is the culture in the area in which you are looking for talent a good fit for your company?
- Is the skill level of the talent in the region you are considering high enough for the role?
You should be able to answer these questions before kickstarting your talent search.
Question #3: If I want to hire somebody in a foreign country to work for me, what are my options to make that happen?
When it comes to hiring foreign remote employees or contractors, the process is similar to hiring locally: source, interview, and hire. You can either do this on your own or partner with a staffing or recruitment agency that has the necessary knowledge, network, and resources to hire from your region of choice.
If your company has enough resources, you may be able to handle the hiring process yourself. That said, it’s critical to note that figuring out the nuances of hiring from a foreign country for the first time can be overwhelming and expensive due to the required time investment.
However, partnering up with a recruiting agency that has experience hiring from outsourcing regions like LatAm can be a fast track to successfully hiring the best global talent.
Question #4: Can I get the same quality of talent offshore or nearshore as if I hired someone locally?
Yes, you can hire high-quality talent globally, though it requires you to clarify your needs and vet candidates effectively. Junior to senior positions can be filled with equal or even better quality talent from regions like LatAm.
LatAm is characterized by a highly educated workforce with strong English skills—countries like Costa Rica and Argentina rank among the top 50 nations in terms of English proficiency. For decades, US companies like PWC, Microsoft, and Google have established offices on-site in the region.
Additionally, LatAm talent works in US time zones and shares a similar working culture with the US, which can make them a great fit for US companies and help ensure high-quality work.
Question #5: How can I ensure that remote workers are set up for success and will work successfully?
When it comes to hiring remote talent, you need to make sure that they are set up with the essentials for remote work, such as:
- A fast and stable internet connection
- Professional workspace
- The necessary hardware and software (such as computers, web cameras, and company emails)
Once the basics are covered, you need to provide a bullet-proof remote onboarding process that sets clear expectations and KPIs to measure success
Depending on what works in your organization, you’ll likely need to set short-term goals for the first week and month, as well as long-term goals for the first 90 days and six months. This will give your new hire a clear direction and you a benchmark to compare their performance against.
Question #6: How can I hire offshore/nearshore if I don’t have an entity overseas?
You can partner with a company like Deel for contract and payment management. This will help your company stay compliant, eliminating a potentially stressful burden of hiring international talent.
Another option is working with a staffing agency that can manage these aspects for you as well.
Question #7: What mistakes do companies make when hiring globally?
Despite its many benefits, hiring professionals from another country can be a complex process with various pitfalls. Here are five of the most common mistakes we see US companies make when outsourcing talent globally.
1. Not having objectives for the new hire
Without clear goals and objectives, it’s hard to determine what success looks like. Additionally, if you don’t define the goal you want your new hire to help you achieve, it is more difficult for recruiters to know what to look for in a candidate in terms of skills and experience. So, before you start your search, assess your requirements and set precise goals for your new hire.
2. Not training remote talent
Remote professionals in locations like LatAm are often highly motivated and growth oriented. They are entrusting their career to your company as much as you’re entrusting your company’s success to them.
Invest in training them thoroughly and providing them with opportunities for continuous professional development, and you will reap the rewards of their growth.
3. Thinking of remote workers as resources rather than teammates
Remote workers are just as important to your team as your on-site employees, so you should treat them as such. Ensure effective collaboration by including them in meetings, Slack conversations, and other important communications.
4. Believing you can only hire junior or assistant roles
A common misconception is that you can only hire junior and assistant roles when nearshoring. The truth is you can also hire highly qualified and experienced VPs and managers or even build an entire team with remote talent from LatAm.
5. Only considering cost
While cost savings are a primary reason for nearshoring to LatAm, opting for the cheapest candidate or offering the lowest salary range can result in hiring the wrong person. This one-dimensional approach often leads to a costly hiring-firing cycle.
Instead, balance cost considerations with factors like experience and specialized expertise in your industry. Investing in the right talent from the start will help you make a high-quality hire and save more in the long term.
Question #8: How do I manage concerns about remote workers potentially scamming me or working multiple jobs?
One way to mitigate this is by using time-tracking software that allows you to monitor how much time your workers spend on tasks and how they use their time.
Additionally, you can set clear working hours and deadlines that ensure your workers are working at the right times and doing the work you hired them for.
The most important question you should ask yourself is, “Are they delivering on the projects we assigned to them?” If they are consistently delivering quality results, then you don’t really have anything to worry about.
You need to decide how much you want to trust workers to handle projects independently versus how much you want to monitor them, as this will be a deciding factor in the type of talent that would be willing to work for you—not everyone is willing to have their time tracked in detail.
Question #9: How do I figure out how much to pay LatAm professionals?
The right compensation to pay LatAm talent depends on the professional’s role, seniority, and region. You can use resources like our salary comparison guides to make an estimation.
It is important to mention that there are two talent markets in LatAm:
- The local market: Local companies hire professionals as employees, providing benefits that are mandatory under local labor laws
- The international remote market: LatAm professionals are often hired as contractors to work remotely for companies abroad.
Salary expectations tend to differ between these markets. If your offer matches the one of a local company but doesn’t come with the benefits, you are likely not going to get the best talent. This is why it is important to offer competitive salaries relative to local markets to ensure you get high-quality talent and still save on overhead costs.
Question #10: What are the most common roles being outsourced to LatAm from the US?
At Near, we have filled roles in a wide range of fields, but the most common roles are in accounting and finance, marketing, and software engineering. A few specific roles include:
- Accountants
- Software developers
- Virtual assistants
- Customer support reps
- Digital marketers
However, you can fill virtually any role that can be done remotely with LatAm-based talent.
Start Hiring Nearshore Talent With Ease
Given local skill shortages and the many advantages of nearshoring, it’s never been a better time to choose LatAm to fulfill your talent needs. The right partner can help you make the most of this outsourcing strategy, simplifying the hiring process and giving you access to the region’s top-performing remote professionals.
At Near, we’ve helped over 500 US companies successfully hire talent from LatAm. If you’re ready to transform your hiring strategy, schedule a free consultation today to start building a high-performing remote team.
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