As the tech industry continues to expand, companies are seeking innovative ways to optimize costs without compromising on talent quality. Traditionally, US firms have turned to Asia for outsourcing, but this approach often comes with challenges such as time zone differences and communication barriers.
Latin America emerges as a compelling nearshoring destination, offering significant advantages like time zone alignment and potential cost savings of over 50% compared to US salaries. The region boasts a highly skilled talent pool of Latin American developers with experience from local unicorns and top global companies.
In this blog post, we delve into the salary ranges for English-speaking software engineers in Latin America and compare them to the United States. We’ll also discuss how to tap into this tech talent pool effectively. By understanding the salary landscape, companies can make informed decisions to attract and retain top nearshore developers.
Why Latin America is a Strategic Choice
Latin American software engineers gain diverse experience by working on projects for both local and international markets. Countries in the region, such as Mexico, Brazil, Argentina, and Colombia, are actively closing the tech gap through education and training programs, ensuring a growing pool of skilled professionals. This makes LATAM developers an increasingly attractive option for tech companies looking to expand their teams with remote developers.
Another key advantage is the lower salary expectations. Despite their high expertise, Latin American engineers generally expect more reasonable salaries, making them an attractive option for startups and smaller companies with limited budgets. Hiring in a Latin American country can provide significant cost savings while still maintaining high-quality work.
Time zone compatibility with North America facilitates real-time collaboration and smooth communication, improving team management and productivity. This alignment is particularly beneficial for tech companies that rely on agile methodologies and need quick feedback loops.
While Latin America offers a balanced mix of cost-effectiveness and skilled professionals, companies should also consider offshore developers in Asia or Eastern Europe for potentially greater affordability. However, the benefits of working with LATAM developers, such as cultural affinity and time zone compatibility, often outweigh the cost differences. Assess your specific needs, budget, desired skills, and time zone requirements to make the best decision for your organization.
In summary, by leveraging the talent pool of remote developers in Latin America, tech companies can optimize their budget, enhance team collaboration, and access a growing market of highly skilled professionals.
Learn more in this blog post: https://www.betterway.dev/posts/hiring-software-development-team-latin-america-advantages-challenges-solutions
Salary Ranges for 2024
Based on our data for 2024, here are the salary ranges for English-speaking developers in South America. These ranges may differ from average local market salaries for non-English speakers.
Junior Software Engineer
Experience: <2 years
Salary Range: $30,000 to $54,000
Mid-Level Software Engineer
Experience: 2+ years
Salary Range: $54,000 to $78,000
Senior Software Engineer
Experience: 5+ years
Salary Range: $66,000 to $108,000
Lead Software Engineer
Experience: 8+ years
Salary Range: $84,000 to $132,000
When you hire software developers from a Latin American country, you access a vast pool of skilled professionals. LATAM developers have diverse experience, making them an attractive option for companies seeking comprehensive skill sets.
Below is a comparison chart of salaries between South America and the United States.
Table 1. Comparison of annual salaries for English-speaking software developers in South America and the United States.
Source: Salary ranges in South America, based on BetterWay Devs' salary aspiration data for 2024. Salary ranges in the United States according to GlassDoor for 2024.
How to Hire Latin American Developers
When hiring software developers in South America, companies have several effective options to consider:
- Direct Hiring: Publish job positions on various platforms and hire software development contractors directly. This approach provides more control over the hiring process and allows for direct interaction with potential candidates. By hiring talented LATAM developers directly, tech companies can establish a more personalized recruitment process, ensuring that the selected remote developers align perfectly with the team’s needs and company culture.
- Employer of Record (EOR): Partnering with an Employer of Record (EOR) service, such as Deel, can simplify the hiring process. EOR services handle essential legal and administrative aspects, including payroll, compliance, and benefits management. This solution allows tech companies to focus on finding the right talent while the EOR takes care of the complexities associated with international employment. This is particularly beneficial for companies looking to hire offshore developers without setting up a local entity.
- Recruitment Firms: Engaging a recruitment or staffing firm like BetterWay Devs is another effective strategy. These firms specialize in sourcing and vetting candidates, saving companies valuable time and resources. Recruitment firms typically have extensive networks and expertise in identifying top LATAM developers who meet specific technical and cultural requirements. Agencies can also assist with hiring and payroll management. Some agencies additionally offer a range of other HR services, such as benefits administration, compliance, and employee training.
Recruitment firms usually charge a fee based on a percentage of the candidate's salary or a set amount per hire. It's essential to discuss and negotiate the fee structure to ensure it aligns with your budget and hiring needs. This approach allows companies to balance cost considerations with the benefits of accessing a curated pool of talented software developers.
By carefully evaluating these options and considering the specific needs, budget constraints, and desired skill sets, tech companies can successfully hire top-notch software developers from Latin America. This strategic approach not only optimizes the recruitment process but also leverages the advantages of hiring remote developers in a cost-effective and efficient manner.
Tips for Successful Hiring
To attract top talent, offer benefits common in the region such as providing a computer, private health and life insurance, study time, and local holidays. Additionally, offering flexible work hours and remote work options can be highly appealing to Latin American software developers, as it allows them to balance their professional and personal lives more effectively.
Consider reducing English proficiency requirements for some roles while ensuring bilingual leadership to further optimize costs and promote diversity within your tech company. This strategy enables you to tap into a larger pool of talented developers in Central America and South America, where English proficiency might not be as widespread. By doing so, you can access skilled developers at a lower cost, while still maintaining effective communication through bilingual leaders.
Another effective strategy is to create a strong employer brand that resonates with the values and aspirations of Latin American developers. This includes highlighting opportunities for career growth, continuous learning, and participation in innovative projects. Demonstrating a commitment to employee well-being and professional development can make your tech company an attractive destination for top-notch talent.
Additionally, leveraging local job boards and professional networks can help you reach a wider audience of skilled developers. Collaborating with local universities and coding bootcamps can also be beneficial, as it allows you to connect with emerging talent and provide internship or mentorship opportunities that can lead to long-term hires.
In conclusion, by understanding the salary landscape and benefits of hiring in South America, companies can attract and retain top talent, optimize their budget, and enhance productivity through better team management and real-time collaboration. Offering competitive benefits, reducing language requirements strategically, and building a strong employer brand are key to successfully hiring and retaining Latin American software developers. BetterWay Devs specializes in connecting North American companies with top Latin American engineers.
Contact us for guidance on hiring from the region.
Paula Tellez
BetterWay Devs Inbound Marketing Manager
https://www.linkedin.com/in/paula-tellez/
Suggested Readings
Remote Latin American Developers 2.2X Income Via Global Work
How Much Does it Cost to Hire a Software Developer from LatAm? A Guide for CEOs
Software Developers in Latin America: A Growing Force in the Global Tech Scene
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