What if you could access top-tier talent at a fraction of the cost without sacrificing quality?

That's the promise of hiring remote workers from Latin America (LATAM). But here's the thing: it's not just about lower salaries. To truly grasp the savings, you need to look at the whole picture, including hidden costs, quality considerations, and the timeline for seeing a return on investment (ROI).

In this blog, I'll break it all down with concrete numbers, address your biggest concerns, and give you a step-by-step plan to make it happen. By the end, you'll have everything you need to decide if LATAM hiring can transform your bottom line.

Let's dive in and explore this opportunity together.

Why LATAM Hiring is a Game-Changer

Hiring in the US can feel like a financial black hole. High salaries, hefty benefits, and relentless office expenses add up fast. LATAM offers a smarter alternative. The region is brimming with skilled professionals: software developers, UX designers, customer support reps, digital marketers, and more. Many speak fluent English, work in time zones aligned with the US, and bring expertise that rivals US talent. The best part? You can save 50-75% on costs. Let's unpack the data and see why this is a no-brainer for businesses looking to optimize their spending.

Managing a distributed team? Check out our 7 essential strategies for building trust that leads to higher productivity and retention.

The Salary Savings You Can't Ignore

The most immediate benefit of hiring from LATAM is the dramatic reduction in payroll costs. Here's a quick comparison of average annual salaries for common roles in the US versus LATAM:

Take a software developer, for example. In the US, you're paying $100,000 a year. In LATAM, that drops to $30,000-$50,000, saving you at least 50% even at the top end. For a UX designer, US salaries can hit $147,000, while in LATAM, $48,000 gets you a skilled professional, delivering savings of up to 70%. These gaps exist because of the lower cost of living in LATAM. In Miami, a comfortable lifestyle costs $7,600 monthly. In Medellín, Colombia, it's just $2,174. LATAM professionals earn salaries that go further locally, passing those savings on to you.

Total Employment Costs: Beyond Salaries

Salaries are just the starting point. In the US, benefits like health insurance, 401k matching, and paid time off add 25-30% to base pay. A $100,000 developer becomes $125,000-$130,000 with benefits. Then there's office overhead such as rent, utilities, equipment, averaging $5,000-$10,000 per employee annually. Total cost? Around $135,000 per hire.

In LATAM, benefits are lighter, typically 14-20% of salary. For a $28,000 developer, that's $4,200-$6,000. Since they work remotely, you skip office costs entirely. Even with an Employer of Record (EOR) fee, say $7,188 annually, your total cost is $43,388-$45,188. That's a savings of $93,812-$93,612 per employee. In Mexico, for instance, benefits and taxes add about 26% to salary. A $28,000 hire there totals $35,800, still a steal compared to $135,000 in the US.

Cost Calculation: A Real-World Example

Let's make this concrete with a detailed cost breakdown for hiring a software developer:

US Developer:

• Base Salary: $100,000
• Benefits (30%): $30,000
• Overhead (office, equipment): $8,000
• Total Annual Cost: $138,000

LATAM Developer:

• Base Salary: $28,000
• Benefits (20%): $6,000
• EOR Fees: $7,188
• Total Annual Cost: $43,188

Annual Savings: $138,000 - $41,188 = $96,812 (70% reduction)

Now, consider a customer support rep:

US Support Rep:

• Base Salary: $50,000
• Benefits (30%): $15,000
• Overhead: $5,000
• Total Annual Cost: $70,000

LATAM Support Rep:

• Base Salary: $15,000
• Benefits (20%): $3,000
• EOR Fees: $7,188
• Total Annual Cost: $25,188

Annual Savings: $70,000 - $25,188 = $44,812 (64% reduction)

Even with EOR fees factored in, the savings are undeniable, and they scale across roles.

When You'll See the ROI

So, when do these savings hit your bottom line? Most businesses see a positive ROI within 2-3 months of hiring from LATAM. Initial costs like onboarding ($1,000-$2,000) and EOR setup are quickly dwarfed by the salary differential. For that $82,812 annual saving on a developer, you're netting $6,901 monthly. A $2,000 onboarding expense is recouped by month three, and from there, it's pure profit. This timeline lets you plan confidently, knowing the investment pays off fast.

Hidden Costs to Watch Out For

Before you jump in, let's talk about potential pitfalls. Hiring from LATAM isn't all smooth sailing, and overlooking these could chip away at your savings:

• Payment Fees: International transfers can cost 1-5% of salary. For a $30,000 hire, that's $300-$1,500 yearly.
• Onboarding Delays: Cultural or language differences might stretch onboarding by 1-3 months.
• Time Zone Challenges: LATAM is close to US time zones (e.g., Bogotá is one hour ahead of EST), but slight mismatches may require extra coordination.

These costs won't derail your strategy, but they're worth planning for.

How to Minimize Hidden Costs

The good news? You can keep these in check with a few smart moves:

1. Optimize Payments: Use platforms like Wise or Payoneer to cut fees to 1-2%, $300-$600 on a $30,000 salary instead of $1,500.
2. Streamline Onboarding: Create a solid process with training materials and a team mentor to shorten the learning curve.
3. Leverage Async Tools: Tools like Slack or Trello reduce the need for real-time meetings, smoothing out time zone hiccups.

Proactive planning keeps your savings intact.

Simplifying Legalities with an EOR

Hiring internationally can feel daunting. Labor laws, taxes, and contracts differ by country, and setting up a local entity is a costly headache. That's where an Employer of Record (EOR) comes in. An EOR acts as the legal employer, handling payroll, compliance, and benefits. You pay a fee, and they take care of the rest.

For example, in Mexico, an EOR charges $599 monthly ($7,188 yearly). For a $28,000 developer with 26% benefits ($7,280), your total cost is $35,280. Compare that to $135,000 in the US, and you're saving $99,720. For lower-salary roles, EOR fees take a bigger bite. A $7,188 fee on a $12,000 hire reduces savings. But for high-value roles, it's a game-changer. Plus, you avoid risks like tax penalties or misclassification fines.

Addressing Quality Concerns

You might be asking, "Are these savings worth it if the talent isn't up to par?" Fair question. But here's the truth: LATAM professionals often match or exceed US standards. Our data shows LATAM developers score within 5% of US peers on technical tests and hit similar productivity benchmarks. The difference? Rigorous vetting. Video interviews, portfolio reviews, and reference checks ensure you get top talent. You're not trading quality for cost; you're getting both.

Industry-Specific Savings Examples

LATAM hiring works across industries. Here's how different sectors benefit:

• Tech Startup: Hired a developer for $30,000 vs. $130,000 in the US (70% savings). The hire built an app that boosted retention by 15%.
• E-commerce: Cut customer support costs from $60,000 to $20,000 (67% savings). The LATAM team achieved a 95% satisfaction rate.
• Healthcare: Reduced admin costs from $50,000 to $18,000 (64% savings). The hire streamlined scheduling, cutting wait times by 20%.

No matter your field, the savings and results speak for themselves.

The Full Picture

To see your true savings, account for every factor. Here's a detailed calculator for a software developer:

This covers everything: salary, benefits, overhead, and more. Even with onboarding and EOR fees, you're saving 68%. And with proper vetting, productivity holds steady.

Multi-Year Savings Projections

The savings grow over time. That $99,812 annual saving on one developer becomes $429,060 over five years (with 3% inflation). For a team of three, that's over $1.2 million. Add in faster time-to-hire (30% less) and lower recruitment costs (20% savings with our agency), and LATAM hiring becomes a strategic powerhouse.

Worried about compliance when hiring LATAM talent? Read our blog on 4 proven strategies that eliminate the headaches.

Your First Steps to Hiring from LATAM

Ready to get started? Here's your action plan:

1. Pick a Role: Start with a non-core but vital position like customer support or admin.
2. Crunch the Numbers: Calculate fully-loaded costs: salary + benefits + overhead for US hires, or salary + benefits + EOR fees for LATAM.
3. Get Expert Help: Schedule a consultation with us to see vetted LATAM candidates tailored to your needs.

We'll guide you through the process, cutting your time-to-hire and recruitment costs.

Is LATAM Hiring Right for You?

This approach can slash costs, boost efficiency, and tap into a rich talent pool. But it's not for everyone. If your business relies heavily on in-person collaboration or has ultra-specific cultural needs, it might not fit. For most businesses, especially in tech, customer service, or creative fields, it's a goldmine. Test it with one hire, track the savings, and scale from there.

The Viva Global Advantage

At Viva Global, we've transformed the remote hiring process through our proprietary Smart Matching System™. We don't just connect you with Latin American talent, we find the perfect match for your specific needs while handling all the complex compliance and administrative aspects.

Our system evaluates not only technical skills but also communication styles, cultural compatibility, and remote work aptitude to ensure seamless integration with your existing team. With access to 10,000+ pre-screened candidates and a streamlined process that delivers top candidates in just 7-10 days, we've eliminated the guesswork from remote hiring.

Ready to transform your team with remote talent from LATAM? Book a free consultation call today!

About the Author

The author is Co-Founder and VP of Sales at Viva Global, a leading remote staffing agency and employer of record specializing in connecting US companies with the top 1% of Latin American talent under the motto "Talent Without Borders." With extensive experience across Fortune 500 companies, top-rated tech firms, and early-stage startups in sales and customer success roles, the author has witnessed firsthand how recruitment processes evolve as companies scale. This diverse background has shaped a unique perspective on talent acquisition that now drives Viva Global's approach to placing remote employees across various industries, helping businesses overcome hiring challenges and build thriving distributed workforces.