Successful startups have always been scrappy. The current economic climate — marked by skilled labor shortages, market fluctuations, geopolitical turmoil, and a decline in venture capital funding — means that new companies have to be scrappier than ever.
In an uncertain economy, smart founders adapt. In addition to embracing new technologies like artificial intelligence and exploring alternative funding sources, today's entrepreneurs are increasingly broadening their hiring horizons. No longer limited by a single geographical location, a growing number of companies are exploring international markets with deeper, more affordable pools of talented professionals.
LatAm emerges as a global talent hub
Driven by a massive, technically strong, and time zone-aligned workforce, Latin America is fast becoming the new frontier for global hiring. LatAm has outpaced other destinations to be the top region for talented software engineers, according to data from the 2023 HackerRank Developer Skills Report.
In 2024, US companies increased year-over-year hiring in LatAm by a whopping 50 percent. Platforms like Howdy.com are helping to accelerate the trend, boosting US tech innovation and connecting life-changing careers to top performers in South America.
Why startups should hire in LatAm
One of the biggest threats to US growth is talent shortages — especially when it comes to high-demand developers. For startups seeking to grow their companies quickly with experienced and talented staff, hiring in LatAm offers the following benefits:
- Expanded talent pool. The LatAm talent pool runs deep. The area is home to highly educated, highly skilled workers in high-demand professions like software development, finance, and marketing. The 2023 Global Talent Competitive Index (GTCI) cited a growing number of countries across the region as talent champions.
- More value, dollar for dollar. Hiring in South America represents a greater value dollar for dollar. LatAm salaries are significantly lower than their US counterparts, providing access to top-tier, senior professionals at competitive rates. The cost of hiring comparable professionals in the US is much higher and prohibitive for many young, bootstrapping startups.
- Adjacent time zones to the US. No South American city runs more than two hours ahead of the Eastern Standard (EST) time zone. By hiring in LatAm, startups get team members who work alongside them instead of hours ahead or behind.
- Cultural similarities. A sustainable team requires members who fit a company's culture. Thanks to Latin America's cultural and economic ties with the US, Latin American professionals tend to share similar work ethics and business practices with North Americans.
- English proficiency. LatAm's close proximity to the US means English proficiency is high. Most Latin Americans learn English during grade school, and countries like Argentina, Uruguay, Bolivia, Peru, and Chile have all surpassed countries like China and India in English language skills, according to the 2023 EF English Proficiency Index.
- Cross-cultural exchange. With a homogenous workforce, creativity within a startup can be stifled. Hiring LatAm talent brings new perspectives and problem-solving strategies, fueling creativity and innovation.
An uncertain economy coupled with fewer communication and travel barriers and a ballooning talent pool makes hiring in LatAm more attractive than ever. For startups seeking strategic hiring solutions, LatAm represents a vast, underutilized reservoir of skilled, motivated professionals ready to contribute to their growth.
