In 2024, remote hiring for tech talent in Latin America, particularly in Chile and Colombia, surged significantly. The region saw double-digit growth, driven by the demand for professionals in compatible time zones. Younger workers from Generation Z are being favored by employers, with a shift towards the importance of workplace culture and mental health for employee retention.
The demand for remote tech talent from Latin America surged significantly in 2024, driven primarily by U.S. companies seeking professionals in compatible time zones. According to Deel’s Global Hiring Report, international hiring experienced double-digit growth across the region. Companies like Deel have gained prominence in the HR and payroll sector, especially after the COVID-19 pandemic triggered increased interest in remote work arrangements.
Chile registered the highest growth, with a remarkable 67% increase in remote hiring compared to the previous year, as reported by Bloomberg Linea. Following Chile, Colombia’s remote hiring rose by 55%, while both Mexico and Argentina experienced a 54% increase. Brazil was close behind, exhibiting a 53% growth rate. Despite having a vast talent pool, Argentina’s high inflation posed challenges, leading many companies to avoid hiring from there.
The top hiring destinations in 2024 included cities such as Buenos Aires, Bogotá, São Paulo, and others. Many Latin American professionals expressed a preference for receiving payments in U.S. dollars due to the instability of local currencies. Dollar-denominated payments increased notably, with Argentina reflecting a 7% rise, while Colombia and Mexico saw a 6% increase. Brazil and Chile also reported increases of 4% and 3%, respectively.
Distinctively, the report highlighted a shift toward hiring younger professionals, particularly those from Generation Z, who were born between 1996 and 2012. Although they may lack experience, their enthusiasm and adeptness with technology such as artificial intelligence are appealing traits for businesses. This trend is reflected in the 97% global surge in demand for younger talent. Furthermore, retaining recent graduates has proven easier than keeping seasoned professionals.
Chile experienced the highest increase in young tech hires, reaching a soaring 147%, while Argentina and Mexico both reported jumps exceeding 112%. Generation Z not only enjoyed the fastest wage growth worldwide but also exhibited a decreased likelihood of job-hopping for better pay compared to their millennial counterparts.
Software engineers and developers topped the list of most sought-after roles, followed by customer service representatives and accountants. Deel analyzed data from over one million job contracts globally and noted that 82% of its hiring remained remote.
Latin America has historically faced a talent shortage in the tech industry, yet positive changes are emerging, according to Daniel Peña Ronderos, CEO of DevSavant. He stated that the region is now well-equipped to cater to global tech talent needs, aided by the rise of EdTech platforms. These initiatives provide opportunities for individuals lacking formal qualifications to acquire IT skills through various learning programs.
To enhance talent retention, Ronderos urged companies to offer LatAm professionals benefits comparable to those of U.S. employees, including stock options and performance incentives. Deel’s report suggests that future retention challenges will be minimal, as layoffs in the U.S. reached historic lows, and global layoffs also saw a decline of 21%, coinciding with a drop in job resignations.
Ronderos further emphasized that salary alone cannot secure retention. Increasingly, factors such as mental health support, workplace flexibility, and a culture of trust and stability are pivotal in attracting and maintaining talent in the evolving remote work landscape.
In summary, the demand for remote tech talent from Latin America has dramatically increased in 2024, with notable growth in countries like Chile and Colombia. Young professionals, particularly from Generation Z, have emerged as favorable hires due to their technological proficiency and willingness to engage in remote work environments. Moreover, trends indicate that factors like workplace culture and mental health support will play a significant role in talent retention moving forward, alongside competitive compensation.
Original Source: nearshoreamericas.com
