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Employer of Record vs Staffing Agency: Which Hiring Solution Is Right for Your Business?

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You need to hire a project coordinator in Colombia. Do you call a staffing agency or an Employer of Record? Most business owners get these two mixed up, and choosing the wrong one costs thousands in wasted recruitment fees, compliance penalties, or hiring delays that stall growth. Here’s the confusion: both services help you hire people. But they do completely different jobs. A staffing agency finds candidates. An Employer of Record employs them legally. One handles recruitment. The other handles payroll, compliance, benefits, and everything that comes after you say “you’re hired.” Understanding this distinction matters because the hiring model you choose determines your costs, compliance risk, speed to hire, and long-term team stability. This guide breaks down exactly what each service does, when to use which, and how Viva Global’s hybrid approach gives you the best of both worlds without the limitations. What Is an Employer of Record (EOR)? An Employer of Record is a third-party organization that becomes the legal employer of your workers in countries where you don’t have a legal business entity. Think of it this way: you want to hire a bookkeeper in Mexico, but you’re a U.S. company with no Mexican subsidiary. Setting up a legal entity in Mexico costs $15,000 to $50,000 upfront, takes 3 to 6 months, and requires ongoing corporate maintenance, local accounting, and annual compliance filings. That’s prohibitively expensive for hiring one or two people. An EOR solves this. Viva Global becomes the legal employer of your Mexican bookkeeper for employment law purposes. We handle everything on the employer side of the relationship: employment contracts compliant with Mexican labor law, monthly payroll processing, income tax withholding and remittance, mandatory benefits administration, and ongoing HR compliance. You manage the bookkeeper’s day-to-day work, assign tasks, review deliverables, and integrate them into your team. We carry the employment liability and administrative burden. What an EOR handles for your international hires: One of the most common misconceptions is that EORs and staffing agencies do the same thing. In reality, they serve very different purposes. The EOR model exists specifically to enable international hiring without the complexity and expense of establishing foreign legal entities. What Is a Staffing Agency? A staffing agency specializes in finding and placing candidates into open positions. They’re recruiters focused on the front end of hiring: sourcing talent, screening resumes, conducting initial interviews, and presenting qualified candidates for your final selection. Staffing agencies play a pivotal role in the job market, assisting companies in filling temporary, part-time, or full-time positions and helping job seekers find employment opportunities that match their skills and career goals. When you engage a staffing agency, they handle the recruitment process so you don’t have to. This includes advertising your open position, tapping into their candidate network, screening applications, conducting preliminary interviews, and negotiating offers on your behalf. What a staffing agency does: What a staffing agency does NOT do: Once you hire the candidate, the staffing agency’s job is done. They don’t become the legal employer. They don’t process ongoing payroll. They don’t handle benefits administration or compliance. Those responsibilities fall on you as the hiring company, unless you partner with an EOR to manage the employment side. Staffing agencies shine when you lack internal recruiting capacity, need to fill positions quickly, or want access to specialized talent pools. But they’re not an employment solution. They’re a recruitment solution. The Key Differences: EOR vs Staffing Agency Let’s clarify exactly where these two models diverge. Legal Employer Status Employer of Record: The EOR is the legal employer on paper. They appear on tax forms, employment contracts, and government filings. Your worker is legally employed by the EOR, even though they perform work exclusively for your company. Staffing Agency: The agency is NOT the legal employer for permanent placements. They find candidates, but once hired, you become the employer (or you use an EOR to assume that role). For temporary placements, some staffing agencies do act as the employer during the assignment, but this is limited to short-term contracts. Scope of Responsibilities Employer of Record: Comprehensive employment management throughout the worker’s entire tenure. Onboarding, payroll, benefits, compliance, HR support, and offboarding. The EOR is involved from day one until the employment relationship ends. Staffing Agency: Recruitment only. Their involvement begins when you have an open position and ends when a candidate accepts your offer. Ongoing employment management is not their responsibility. Timeline and Duration Employer of Record: Designed for long-term employment relationships. The EOR model works best when you’re building a stable, dedicated team that you plan to retain for months or years. Staffing Agency: Can support both temporary and permanent placements. However, for permanent hires, the agency’s role is transactional and concludes at the point of hire. Compliance and Risk Management Employer of Record: The EOR assumes legal liability for employment compliance. EORs are responsible for ensuring that all legal and regulatory requirements are met in the country where the employee is based, reducing risk for your company. Misclassification, payroll tax errors, benefits violations, these risks transfer to the EOR. Staffing Agency: Limited compliance involvement. They may verify that candidates meet job requirements and have work authorization, but they don’t manage ongoing compliance obligations. That burden stays with you. Geographic Capabilities Employer of Record: Purpose-built for international hiring. EORs maintain legal entities or partnerships in dozens of countries, enabling you to hire globally without setting up your own foreign subsidiaries. Staffing Agency: Most staffing agencies operate domestically or regionally. While some have international reach, their focus is finding candidates, not managing cross-border employment compliance. Numbers You Should Know Cost Comparison: EOR vs Staffing Agency Let’s talk numbers. Which model actually costs less? The answer depends on your hiring scenario, but here’s how the economics typically play out. Employer of Record Costs EOR services operate on a subscription model. You pay a monthly fee per employee, which covers all employment-related services. Typical EOR pricing structure: For example, if you hire a $30,000 annual salary project coordinator through

Remote Hiring

Can You Hire Bookkeepers in Latin America? What U.S. Service Business Owners Need to Know in 2025

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Your U.S.-based bookkeeper costs $55,000 annually plus benefits, totaling closer to $66,000 annually. A skilled professional in Latin America with identical qualifications costs $24,000 to $36,000 and works in your time zone. That’s up to a 65% reduction in payroll spend without sacrificing quality. Small service businesses across construction, real estate, professional services, and field operations are discovering what larger companies have known for years: Latin America produces exceptional financial talent at a fraction of domestic costs. But hiring internationally comes with questions. Can LATAM bookkeepers really handle U.S. accounting standards? What about English proficiency? And how do you navigate employment compliance across borders? This guide answers every question you have about hiring bookkeepers from Latin America, including real costs, compliance considerations, what to expect from candidates, and how an Employer of Record makes the entire process risk-free. The Real Cost Comparison: U.S. vs. Latin American Bookkeepers Let’s start with the numbers that matter most to your bottom line. According to the U.S. Bureau of Labor Statistics, hiring a bookkeeper domestically costs approximately $55,000 per year in base salary. But that figure only tells part of the story. When you factor in the true employer costs—payroll taxes, health insurance, retirement contributions, paid time off, and overhead—the total annual investment climbs to $66,000 to $70,000 per employee. For small service businesses operating on tight margins, that’s a significant expense. Construction companies, real estate firms, and professional service providers often need dedicated bookkeeping support but struggle to justify the full cost of a domestic hire. Latin American bookkeepers deliver identical expertise at 70% lower cost. Here’s what you’ll actually pay for qualified LATAM bookkeeping talent: Numbers You Should Know Compare that to the $66,000–$70,000 all-in cost for a U.S. bookkeeper, and the value proposition becomes crystal clear. You’re looking at annual savings of $22,000 to $46,000 per hire—capital you can reinvest into growth, equipment, marketing, or expanding your team. And here’s the kicker: you’re not compromising on quality. 64% of multinational companies operating in Latin America plan to increase their remote financial staff by 2025, precisely because they’ve discovered the talent depth in this region matches or exceeds what’s available domestically. Why Latin American Bookkeepers Are Ideal for U.S. Service Businesses Cost savings grab attention, but they’re not the only reason U.S. companies are turning to Latin America for bookkeeping support. Several strategic advantages make LATAM professionals particularly well-suited for American service businesses. Time Zone Alignment Means Real-Time Collaboration Unlike offshore bookkeepers in Asia or Eastern Europe, Latin American professionals work in time zones that overlap almost perfectly with U.S. business hours. Mexico City operates in Central Time. Colombia, Peru, and Ecuador align with Eastern Time. Argentina and Chile are just one hour ahead of New York. This synchronization transforms how you work together. Need to discuss a discrepancy in accounts payable? Hop on a quick call at 2 PM. Month-end close approaching and you need status updates? Your bookkeeper is online and responsive. Being in similar time zones as North America facilitates real-time collaboration and communication, ensuring swift responses. For construction companies managing job costs across multiple active projects, or real estate firms tracking property-level financials, this real-time accessibility is invaluable. You’re not waiting 12 hours for responses or coordinating awkward 6 AM meetings. Bilingual Professionals Who Understand U.S. Business Practices English proficiency isn’t a gamble when hiring from Latin America—it’s the standard for professional roles. Bookkeepers targeting U.S. companies have invested years developing fluent English communication skills, both written and verbal. But it goes deeper than language. Bilingual bookkeepers bridge communication gaps by interpreting financial terminology in both English and Spanish, ensuring accurate reporting for US stakeholders while understanding Latin American and US business practices. This cultural and operational fluency means your LATAM bookkeeper understands American business norms, fiscal year conventions, tax deadlines, and the software tools you’re already using. They’re not learning your playbook from scratch—they’ve likely supported U.S. companies before. U.S. GAAP Expertise and QuickBooks Proficiency Here’s a concern we hear often: “Can a bookkeeper in Colombia really handle U.S. accounting standards?” The answer is an unequivocal yes. Bookkeeper candidates are experts in US GAAP standards with extensive experience with US GAAP and standard US accounting practices. Many Latin American accounting programs teach U.S. Generally Accepted Accounting Principles alongside local standards precisely because U.S. companies represent major employment opportunities. When it comes to software, QuickBooks dominance transcends borders. LATAM bookkeepers are proficient in QuickBooks Online, QuickBooks Desktop, Xero, and other platforms common in American small businesses. They also bring expertise in complementary tools like Gusto for payroll, Bill.com for AP automation, and Microsoft Excel for financial modeling. For construction companies, this often extends to job costing modules and construction-specific accounting workflows. Your LATAM bookkeeper won’t just record transactions—they’ll help you track project profitability, manage progress billing, and generate WIP (Work in Progress) reports that drive better business decisions. What Construction and Service Businesses Should Expect from LATAM Bookkeepers Let’s get specific about what hiring a bookkeeper from Latin America looks like for your particular industry. For Construction Companies Construction accounting is notoriously complex. You’re managing job costing, progress billing, subcontractor payments, retainage tracking, and equipment depreciation across multiple active projects simultaneously. The construction industry needs to attract around 439,000 new workers in 2025—but that number refers to on-site trades, not back-office support roles. Here’s where Latin American bookkeepers shine for construction firms: Core construction bookkeeping capabilities: A mid-level LATAM bookkeeper costing $24,000 annually can handle these responsibilities for a construction company running $5M to $15M in annual revenue. Compare that to the $60,000+ you’d pay for equivalent domestic talent, and the ROI becomes obvious. For Real Estate Companies Property management and real estate investment firms have unique accounting needs: tracking income and expenses by property, managing security deposits, handling tenant billing, and generating property-level P&Ls for ownership review. LATAM bookkeepers supporting real estate clients typically manage: Your bookkeeper becomes an extension of your property management team, handling the financial operations that keep properties profitable while you focus

Remote Hiring

How to Access LATAM Job Boards Without Local Business Registration (2025 Guide)

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You built the perfect job description. Found the ideal salary range. Clicked “post job” on Computrabajo. Then hit the registration wall: Mexican RFC number required. Colombian RUT mandatory. Proof of local business entity needed. Your LATAM hiring plans just stalled. The platforms where 73% of Latin American professionals actually search for jobs demand local business registration that takes weeks to secure and thousands to set up. LinkedIn becomes your default option, but you’re fishing in a pond that holds less than 30% of the candidate pool. This guide shows you how to access the platforms where candidates actually live, understand real setup costs, and choose the strategy that matches your hiring volume without burning capital on unnecessary infrastructure. Why 7 Out of 10 LATAM Candidates Never Check LinkedIn LinkedIn works fine for senior bilingual roles. For everything else, you’re missing most of the market. A customer service manager in Medellín checks Elempleo every morning. An accountant in Mexico City scrolls OCC Mundial during lunch. A technical support specialist in San José starts with Tecoloco. These platforms have the volume, local trust, and active job seekers that LinkedIn can’t match in these markets. Numbers You Should Know: The challenge? These platforms weren’t built for international employers. Computrabajo Mexico requires your RFC (tax ID) during signup. Elempleo wants Colombian business operation proof. Tecoloco demands Costa Rican incorporation documents. You can’t create an account and start posting like you would on Indeed. This registration barrier explains why U.S. companies either pay premium rates for limited LinkedIn access or work through recruitment agencies charging 15-25% of first-year salary. Both options deliver results, but both cost significantly more than direct platform access. What Platform Access Actually Costs The requirements vary by country, but the pattern holds consistent: local presence matters. Mexico’s Two-Tier Platform System Computrabajo Mexico dominates entry to mid-level hiring. You need a Mexican RFC (tax ID) or registered business entity to create an employer account. Monthly posting packages run $150-300, giving access to candidates actively searching for administrative, customer service, and technical roles. The workaround? Partner with a local recruitment agency that already maintains platform access. You’ll pay for convenience, but you get immediate posting capability without weeks of bureaucratic setup. OCC Mundial serves Mexico’s premium professional market. This platform requires full Mexican business entity registration before you can post a single job. Employer accounts cost $400-800 monthly, with additional fees for resume database access. The candidate quality justifies the premium pricing. You’re reaching experienced professionals who command higher salaries and bring specialized skills. But you’re also committing to significant upfront investment before hiring your first person. Indeed Mexico accepts U.S. company registrations, delivering reduced features without local business presence. Pay-per-application pricing starts at $3-8 per click. Application volumes stay moderate compared to local platforms, and you’re not tapping the same candidate depth. Colombia’s Market Leader Elempleo captures 65% of Colombian online job applications. That market share comes with requirements: you need a Colombian RUT (business tax number) for standard registration. Monthly costs run $200-500 depending on posting volume. Setup takes 2-4 weeks if you’re registering as an international company. Some agencies offer posting services as workarounds, letting you access the platform without direct registration. Computrabajo Colombia operates with similar registration preferences, though agency partnership workarounds exist. Monthly packages cost $120-250. Application volumes stay high, though quality varies. The platform works well for customer service, administrative, and entry-level technical roles. Costa Rica’s Professional Hub Tecoloco dominates with 80% of Costa Rican professionals using the platform regularly. Access requires Costa Rican corporation or partnership registration. Employer accounts cost $300-600 monthly. The setup demands local business licenses and tax registration, but candidate quality justifies the investment. Costa Rican professionals often bring extensive U.S. business experience, high English proficiency, and remote work capabilities that translate immediately to distributed teams. Computrabajo Costa Rica follows similar patterns with business registration requirements or agency partnership options. Monthly costs range $180-400. The candidate pool shows strong English skills and familiarity with North American business practices, making cultural integration smoother. The Real Numbers Behind Platform Access Understanding total costs helps you make smart decisions about DIY registration versus partnership approaches. Direct Registration Investment If you’re registering directly across all three countries, expect $15,000-25,000 in first-year costs. That breaks down to business registration fees of $2,000-5,500 per country, monthly compliance costs of $300-800, legal consultation at $150-300 per hour, and ongoing platform subscription fees. This investment makes sense if you’re hiring 10+ people annually across multiple countries. The per-hire cost drops dramatically once infrastructure is in place. Partnership Route Economics Agencies charge 15-25% of first-year salary or flat project fees of $1,500-3,500 per placement. You get pre-vetted candidate databases, local expertise, cultural guidance, and zero compliance overhead. For companies hiring 1-5 people per year, this route usually costs less than DIY registration. You’re paying for speed and expertise rather than building your own infrastructure. Hybrid Strategy Framework Start with LinkedIn for immediate access at pay-per-use pricing. Add agency partnerships for local platform reach on specific roles. Gradually transition to direct platform access as hiring volume increases. This approach balances speed with long-term cost efficiency. You’re not over-investing in infrastructure before proving your LATAM hiring model works. Want to scale your business with elite LATAM talent at 70% lower U.S. payroll cost? We handle platform access, compliance, and candidate vetting so you can focus on growth. Book a call with us today and tell us what your needs are. Hidden Costs Nobody Mentions VPN services for local platform access add $10-30 monthly. Translation services for platform navigation cost $200-500 for initial setup. Local payment processing setup runs $100-300 per country. Currency exchange fees take 2-4% of every transaction. Factor these into your budget planning. They add up faster than most companies expect. Time investment matters too. Platform setup and learning takes 20-40 hours per country. Job posting optimization requires 5-10 hours per posting. Application screening runs 2-5 minutes per candidate. Cultural orientation learning adds 10-20 hours per country. Executive time diverted from

Remote Hiring

How to Onboard LATAM Employees Successfully in 90 Days (2025 Guide)

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Companies lose $4,129 per failed hire, according to SHRM data. That number doubles for international remote hires who never integrate properly. Yet 73% of U.S. companies still treat onboarding as a one-day orientation followed by radio silence. Here’s the reality: hiring your LATAM team member was the easy part. What happens in the next 90 days decides whether that hire becomes your most reliable contributor or another expensive turnover stat. Remote workers in Latin America show 25-35% higher retention when companies nail the integration process. Most staffing agencies collect their placement fee and disappear. Smart business owners know placement is just the starting line. This guide shows you exactly how to turn that new hire into a long-term asset who sticks around, contributes meaningfully, and makes your investment worthwhile. The First Week Sets Everything in Motion Remote onboarding fails when companies copy-paste their in-office process onto Zoom calls. Add time zones, cultural differences, and varying work expectations, and you get confusion. Fast. Numbers You Should Know: Get it right and your LATAM team members become your most productive, loyal employees. Day One Separates Professional from Amateur Equipment and access setup tells your new hire everything about how you operate. They need to start contributing immediately, not waste three days hunting down login credentials. Ship all equipment two weeks early. Create every system account with temporary passwords and test each login yourself. Prepare a digital welcome packet with your company handbook, team directory, first-week schedule, and role-specific resources. Set up their workspace in project management tools, communication platforms, and file sharing systems before they start. Schedule their first week of meetings. Assign their cultural buddy and brief that person on expectations. The 90-Minute Welcome Session Skip the boring corporate orientation. Structure this as an interactive introduction that covers what matters. Spend 15 minutes on company foundation: your history, mission, core values, current team structure, how their role fits, major clients or projects, and what makes your culture different. Use 30 minutes for team introductions with a photo directory showing names, roles, fun facts, communication preferences, who handles different questions, and informal team dynamics. Take 30 minutes for immediate expectations: first-week goals, specific deliverables, communication protocols, response time expectations, meeting schedules, performance standards, and feedback processes. Save 15 minutes for Q&A, confirming technical setup, and reviewing the first-day schedule. Record this session. You’ll reuse it with every new hire. Cultural Context From Hour One LATAM professionals often come from hierarchical work environments where direct communication with leadership isn’t encouraged. You need to be explicit about your communication style. Tell them immediately: “We encourage questions at all levels and direct communication with anyone on the team.” Make it clear they don’t need permission to suggest improvements or share ideas. Frame mistakes as learning opportunities, not career threats. Emphasize that you value their input regardless of tenure. State plainly that you prefer proactive communication over waiting for perfect solutions. The Cultural Buddy System Works Assign a team member (ideally someone who’s worked remotely or has international experience) for informal check-ins and cultural navigation. This person isn’t their manager. They’re someone safe to ask basic questions without feeling judged. Your buddy handles daily informal check-ins during week one, explains unwritten rules and company norms, supports tool navigation and process questions, translates cultural differences when communication styles clash, and provides an escalation path for issues they’re uncomfortable raising with management. Daily Check-Ins Are Non-Negotiable Yes, daily. For 15 minutes. This isn’t micromanaging. It’s support. Cover technical issues or access problems and solve them immediately. Confirm their understanding of assigned tasks and expectations. Answer questions about company processes or team dynamics. Check their comfort level with communication tools and meeting participation. Address any cultural adjustment challenges. Weeks Two Through Four Build Real Integration This is where most companies mess up. They assume all LATAM professionals communicate the same way, or worse, they ignore cultural differences entirely. Smart managers adapt based on regional patterns while treating each person as an individual. Regional Communication Patterns Matter Mexican team members often prioritize relationship-building over immediate task focus. Their communication style tends toward indirectness; “maybe” often means “probably not.” Family and personal life balance is non-negotiable and deeply valued. Respect for hierarchy exists but openness to input increases with trust. Decision-making may involve more consultation and consensus-building. Colombian professionals use a formal communication style, especially in the first months. They bring a strong work ethic emphasizing quality and thoroughness over pure speed. They prefer collaborative problem-solving and team input. They appreciate structured feedback and clear expectations. Building personal relationships enhances professional effectiveness. Argentinian employees communicate more directly, often closer to U.S. business norms. They value intellectual challenges given their high education levels and technical expertise. They prefer growth opportunities and professional development. They adapt to U.S. business culture faster. They express opinions more readily but still appreciate respectful dialogue. Ask each person directly about their communication preferences rather than making assumptions. Trust Through Systematic Transparency Don’t just invite them to meetings. Give them meaningful roles from week two. Week two: observer role with one question to ask the team. Week three: brief project update or learning share (five minutes maximum). Week four: co-lead a discussion or present a small analysis. This progression builds confidence while demonstrating their value to the existing team. Documentation Eliminates Guesswork Create shared, living documents that everyone can access. Your Team Communication Bible covers response time expectations for different communication types, when to use email versus Slack versus video calls, meeting etiquette and participation guidelines, and how to escalate issues or request help. Project Workflow Guides provide step-by-step processes for common tasks, approval chains and decision-making authority, quality standards and review processes, and template libraries for deliverables and communications. Your Cultural Translation Document explains company-specific terminology and abbreviations, industry jargon, unwritten rules about communication timing, and social norms for team interactions and relationship building. Month One Goals By day 30, your hire should be comfortable participating in team meetings, have established 1:1 relationships with key collaborators,

Remote Hiring

The Complete Guide to Hiring Remote LATAM Talent in 2025

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Over 60% of large U.S. companies now hire from three or more Latin American countries, and remote work participation in the region grew from just 3% in 2019 to 30% by 2023. The conversation around hiring remote talent from Latin America has exploded, but most small business owners still have basic questions about how this actually works and what it really costs. This guide answers those questions directly. You’ll learn what hiring from Latin America actually means, how it differs from other international hiring approaches, what the real costs look like, and how to handle the legal and practical details that trip up most first-time employers. Think of this as hiring a remote worker from another U.S. state, except they happen to live in Mexico City or Bogotá. The result? Access to skilled professionals in operations, customer service, marketing, bookkeeping, and administrative roles at roughly 70% lower payroll costs than domestic hires. More importantly, you’re tapping into talent pools that have been preparing specifically to work with U.S. companies for over two decades. What LATAM Remote Hiring Actually Means Latin America has been building its remote work infrastructure much longer than most people realize. This approach has developed for over 20 years, and what changed recently is the scale and sophistication of available talent. You’re hiring skilled professionals who work remotely from their home countries while contributing to your U.S.-based business. These workers stay in Colombia, Mexico, Costa Rica, or other Latin American countries. No visas. No relocation. No immigration paperwork. They work normal business hours that overlap with yours because of favorable time zones. This differs completely from bringing workers to the United States or setting up manufacturing operations overseas. You’re building a distributed team where some members happen to work from different countries. Numbers You Should Know: Where companies once primarily hired for basic customer service roles, today’s LATAM talent market includes operations managers, marketing coordinators, executive assistants, bookkeepers, customer success specialists, and virtually every white-collar support role you can imagine. Educational systems across Latin America have improved dramatically over the past 15 years. Universities in major cities produce graduates with strong business skills and English proficiency designed specifically for the global marketplace. Many professionals complete additional certifications and training programs to position themselves for U.S. market opportunities. This development means you’re accessing experienced talent pools. You can find professionals who have already worked remotely for U.S. companies, understand American business culture, and have developed the communication and project management skills that make remote collaboration successful. Understanding the Key Terms: Outsourcing, Nearshoring, and Offshoring The terminology around international hiring gets confusing because different terms are used interchangeably when they actually mean different things. Outsourcing traditionally refers to contracting entire business functions or processes to external companies. This could be call centers, entire IT departments, or manufacturing operations. When people hear “outsourcing,” they often picture assembly lines or large service centers. Offshoring specifically means moving business operations to distant countries with significant time zone differences. Think of U.S. companies setting up operations in India or the Philippines, where there’s often a 12+ hour time difference that makes real-time collaboration difficult. Nearshoring refers to moving operations to nearby countries that share similar time zones and often cultural similarities. For U.S. companies, this typically means Latin America. The proximity helps with operational efficiency in terms of time zones, business hours, and cultural alignment. Here’s where it gets interesting. When we talk about hiring remote LATAM talent, you’ll often see this referred to as “outsourcing” even though it’s technically nearshoring. The term outsourcing has evolved. While it traditionally meant contracting entire business functions to external companies, the term now commonly describes hiring full-time employees in countries outside the U.S. Nearshoring is becoming more popular as a term, but outsourcing remains the most widely used way to describe this strategy. In practice, both terms refer to the same thing when we’re talking about directly hiring individuals rather than contracting with third-party companies. You’re building your own team that happens to be distributed across different countries. The Reality of Cost Savings and Fair Compensation Let’s address the elephant in the room. Many business owners worry that paying lower salaries means exploiting workers or that lower costs automatically mean lower quality. Neither concern reflects reality. The cost savings are real and substantial. Companies hiring from Latin America typically reduce payroll costs by approximately 70% compared to U.S. hires for equivalent roles. A customer service manager who commands $65,000 annually in the U.S. might cost $20,000-$25,000 in Latin America. An executive assistant earning $55,000 domestically might cost $18,000-$22,000. But here’s the important part: these salaries represent premium compensation in local markets. Competitive LATAM salaries for remote U.S. work typically run 2-4 times higher than local market rates in those countries 2-4 times higher. You’re not exploiting economic disparities. You’re providing premium opportunities that significantly improve these professionals’ earning potential and career prospects. The lower salary requirements reflect cost of living differences. An operations coordinator in Bogotá or Mexico City needs a fraction of what their San Francisco or New York counterpart requires to maintain a similar or better standard of living. This creates a genuine win-win situation. You reduce labor costs significantly while offering competitive compensation by local standards. Your remote team members gain access to premium opportunities, career growth, and earnings that dramatically improve their quality of life. English Proficiency and Communication Realities One of the biggest concerns about LATAM talent centers on English language capabilities. The reality is more nuanced than simple yes-or-no answers. The professionals you’ll be considering for remote work (college graduates, experienced workers, those specifically targeting U.S. companies) generally have business-level English proficiency. This doesn’t mean they’re native speakers. It means they can handle complex business discussions, write professional emails, understand detailed instructions, and participate effectively in meetings. English proficiency varies significantly by individual, education level, professional experience, and location. Major tech and business hubs like Buenos Aires, Bogotá, Mexico City, and San José score highest for English proficiency among

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