Hiring in LATAM: What US Businesses Need to Know Before Getting Started

Over the last few years, Latin America has quietly become one of the most popular places for US companies to hire remote talent. From Mexico and Colombia to Brazil and Argentina, the region is full of skilled professionals who understand international work standards and who can collaborate easily across time zones.

The best part? You don’t have to wake up at 5 AM to have a meeting. Most LATAM countries share similar working hours with the US, which makes teamwork effortless compared to other remote regions.

For many small and mid-sized US businesses, hiring in LATAM has become the smartest way to grow without overspending.

Why US companies love hiring in LATAM

Before we go further into the “how,” let’s look at the “why.” What’s driving so many US businesses to look south for their next hires? It comes down to four key advantages, and together, they make LATAM one of the most strategic hiring regions in the world.

• Real-time collaboration thanks to shared time zones

Most of LATAM sits within one to three hours of the US time zones. That means smoother communication, faster project turnarounds, and fewer late-night meetings. For businesses that value agility, this alignment is priceless.

• Skilled talent at a competitive cost

Hiring in LATAM often reduces payroll expenses by 30–60%. But this isn’t about cheap labour - it’s about value. You’re paying fair, local rates for professionals who can deliver work at US quality standards.

• Cultural alignment and strong work ethic

LATAM professionals tend to be proactive, communicative, and client-oriented. They’re accustomed to collaborating with US teams and adapting quickly to Western business practices.

• Expanding access to global skills

From developers and designers to executive assistants and marketers, LATAM’s talent pool spans nearly every business function. Many professionals have worked for global clients before and understand expectations around quality, communication, and deadlines.

Who is hiring in LATAM?

LATAM isn’t just popular with tech giants anymore. In fact, most companies hiring there are small to mid-sized businesses, lean teams that want to scale quickly without taking on heavy operational costs.

These businesses typically have between 1–50 employees, are based in California, New York, Texas, or Florida, and need flexible access to global talent that fits their budgets.

Key industries hiring in LATAM

• Software and IT services: Developers, engineers, QA testers, and DevOps specialists from LATAM are in high demand. They often bring both technical depth and problem-solving creativity.
• Marketing and creative agencies: Designers, copywriters, social media managers, and video editors from LATAM are prized for their creativity and English fluency.
• Consulting and staffing firms: US consultancies hire LATAM-based project coordinators, data analysts, and recruiters to support client delivery and reduce administrative load.
• Gaming and digital entertainment: LATAM’s creative industries are booming - from concept artists to community managers.
• Customer support and sales teams: Bilingual professionals in LATAM help US companies deliver 24/7 customer engagement at sustainable costs.

Why most LATAM professionals work as contractors

In regions like Europe, Employer of Record (EOR) models are common because employees prefer full-time contracts with benefits. In LATAM, however, the opposite is true.

Most professionals prefer contractor arrangements, and businesses follow suit. This preference is driven by a few key factors:

• Cultural familiarity - Freelancing and independent work are well-established career paths. Many LATAM professionals have multiple clients and enjoy the freedom that comes with contracting.
• Speed and flexibility - Contractor agreements can be started quickly without waiting for local registration or long onboarding cycles.
• Tax and administrative simplicity - Contractors often manage their own taxes and social contributions, reducing the employer’s administrative burden.

Main challenges US businesses face when hiring in LATAM

While hiring in LATAM is appealing, it’s not without hurdles. The main challenges US employers face usually fall into four buckets:

• Managing compliance and paperwork

Each LATAM country has its own laws about taxes, contracts, and worker classification. Misclassifying a worker or using the wrong type of agreement can cause issues — even for small businesses.

• Providing benefits and fair support

Most LATAM contractors don’t receive health insurance, paid time off, or pension plans by default. Many US employers want to offer something extra to attract top talent, but don’t know how to do it legally.

• Handling international payments

Paying people across borders involves fluctuating exchange rates, transfer fees, and delays. Managing invoices manually every month can also be time-consuming — especially as your team grows.

• Managing administrative overhead

Coordinating contracts, invoices, and payments across different time zones and currencies can easily overwhelm small HR or finance teams. Without automation or local support, it’s time-consuming and error-prone.

In short, hiring is easy; managing it the right way is where things get tricky.

How to prepare for hiring in LATAM

So, you’ve decided LATAM is the right place to find your next team members, great choice. But before you send out that first contract, it’s important to prepare.

Hiring internationally isn’t just about finding the right person for the job; it’s about setting up the right structure that allows you to hire confidently, stay compliant, and support your team from day one. Here’s where to start:

Step 1: Choose your hiring model wisely

You have two main options:

• Contractors: Ideal for flexible roles, short-term projects, or when you’re hiring multiple people across different countries.

Learn more about hiring contractors with Native Teams

• Employer of Record (EOR): Best for long-term hires or when you want to offer benefits and official employment status.

See how the EOR model works with Native Teams

LATAM tends to favour contractors - but if you plan to retain top talent, exploring EOR options for key roles can pay off.

Step 2: Build a reliable payment system

Nothing damages trust faster than late or incomplete payments. Set up a payment platform that:

• Sends payments in local currencies
• Offers transparent fees
• Keeps a record of all transactions
• Handles taxes and compliance automatically

This not only saves you time but also shows your contractors that you value their work.

Related topic: How to Pay an Independent Contractor in 4 Steps

Step 3: Keep communication clear and consistent

Remote doesn’t mean distant. Set expectations early:

• What are the working hours?
• How often will you check in?
• How do you handle invoices or contract renewals?

Clarity builds confidence, and confident contractors perform better.

Why Native Teams is the right partner for US companies hiring in LATAM

Working with a trusted global partner takes the stress out of hiring and paying international teams. That’s where Native Teams steps in.

• We understand LATAM inside and out: Our local expertise means you don’t have to worry about complex labour laws or payment restrictions. We’ve already built the network, so you can hire faster.
• Transparent pricing, no surprises: Our clients choose us because our pricing is cost-efficient and straightforward. You know exactly what you’re paying for, and we help you keep costs low without cutting corners.
• Simplified payments and admin: Send payments, manage contracts, and handle compliance - all in one dashboard. No need for multiple tools or spreadsheets.
• Better experience for your contractors: Your team deserves smooth onboarding, fast payments, and responsive local support. We make sure every contractor feels valued, helping you retain great talent longer.

Conclusion

Hiring in LATAM is one of the smartest moves a US business can make today. The region offers incredible talent, real-time collaboration, and cost savings that make growth sustainable.

But success depends on how well you prepare - understanding local hiring preferences, choosing the right structure, and managing payments properly.

Ready to grow your team in LATAM?

Whether you’re hiring your first contractor or building a full remote team, Native Teams makes it easy.

• Pay your contractors on time
• Stay compliant in every country
• Manage everything in one simple platform

Book a demo to learn how Native Teams helps US businesses hire and pay LATAM talent - quickly, compliantly, and affordably.