In the current labor scenario, IT firms, and startups are widening their limits to find and hire the most talented software developers around the world. Even so, expanding their reach to other territories brings some challenges to comply with local labor standards. So, if you are thinking of hiring talent abroad to expand your business, you may need to go through some legal hoops. In this post, we shed some light to help you understand this model and assess who is the Best Employer of Record for hiring software developers in South America
Benefits of using an EOR partner
- Let's start defining Employer of Record as a company legally established to deal with employee salaries and benefits, including taxation, employment benefits, visa application, insurance, performance incentives, and other logistic and administrative task related to payroll and employee relationships.
- Working with an Employer of Record is a cost-effective way to have employees in a foreign country without creating your own local entity. Each country has a different package of benefits and elements of compliance, and this model helps you avoid penalties, offering the same conditions to all your collaborators and reducing the administrative burden associated with talent management.
- Legal payroll administration is difficult to manage for corporate enterprises without the assistance of competent EOR firms. The Best Employer of Record will help them to deal with all the payroll workload, minimize risks, find good quality employees, facilitate with the foreign employee, and maximize their budgets while providing competitive salaries, benefits, and extra perks.
- If you want access to talent global markets, Employers of Record optimize the process with a deeper understanding of the local language, culture, employment laws, and all the small details that help you save time, and money and avoid risks on your side. They are your allies to establish a talent acquisition and management strategy, as experts on the challenges and opportunities that each country offers in these areas.
- An implicit benefit in using a local partner is having them to help you onboard your employees. Their status and proximity allows them to have a more accurate an effective communication during the recruiting and hiring process and in the day to day communication. They know more about the local culture and values of the people and help you to make a more efficient integration of the employee to your local team. It also works the other way around, they are your presence in each country, helping you to deal with specific situations so you can focus on growing your business.
Good Conditions and stability
As we mentioned in our guide to start hiring in South America, if you are looking for long-term engagements you should focus on providing local legal contracts with a competitive salary, so that employees have all the local benefits and stability. You can read more about it here: Where To Start And How To Hire Full-Time Software Developers In South America
Some Employer of Record provide the alternative to engage people as contractors, but in the end that service becomes just a money disruption service; which comes in handy if you have short-term contractors in many countries, but it is not a match if you are looking for top performers and stable working positions.
The real value provided by EOR companies is having on your service a local entity that provides stability to the developer and legal compliance to all parties. Depending on the pricing model, and the type of partnership, is an alternative to manage your teams in the long run. If the partner offers a competitive model, it would save you time, money, and help you develop an authentic and accountable relationship with your foreign workers.
You normally find two types of pricing: A fixed monthly fee per worker or a percentage of the salary plus taxes. And you may also find administrative, onboarding, or termination fees, on top of their basic pricing. As in any industry, you may find different models, so, assessing each pricing proposal for transparency and clarity, and asking for unexpected costs is a good idea.
It’s important to remember that each month you will pay a fee that will include a service commission, the salary base, administrative taxes, employee benefits, health insurance, and vacation accruals, making the employee cost up to 40% or more than the perceived salary. This labor burden is different in each country, and the Employer of Record will know the variations to ease the process.
You should also check for all the benefits included in the fee. Depending of the provider, you can find differing alternatives, and strenghs, including hleping you to find qualified candidates for each of your job opportunities,and other special services, such as renting laptops and other devices, and including extra benefits to your team.
Top Employers of Record to hire developers in Latam
As the company is actively serving in more than 150 countries across the globe and has a good presence in Latin America.
Pricing: You can hire people anywhere around the world with deel.com, beginning at $49 monthly per member for contractors. Deel EOR services are also available for $599. With Deel, you quickly enroll an applicant by creating a personalized agreement that complies with statutory provisions and sending it to them for signature. Employing companies pay the crew as a whole in one lump sum each month and Deel HR guarantee that the workers receive their wages promptly and in the specified form of payment.
Pros: One comprehensive dashboard makes it easier for you to deal with global staff and manage them better. With Deel's support, it becomes easier for you to gain better profits through distributed workforce to serve your clients far and wide.
Companies in North America find this company a reliable solution to hire, handle and manage a remote team of programmers in just a short period. Remote contractors and the global workforce find this payroll and hiring solutions fair enough.
Pricing: OnTop EOR service starts at $299, but it varies depending on the country, this is something that one of their sales rep will be able to provide more information.
GetonTop Pros: On top started as a LATAM company and are currently servicing only the Americas, making them an ideal company for the region.
This is another known global EOR firm with over 150 countries.
Multiplier Pricing: Multiplier's fee starts from $300 a month to cover instant employment contracts, multi-currency payment distributions, insurance administrations, ESOPs, and benefits.
- A broad network of partners around the world
- Good customer feedbacks.
They assist you in maintaining compliance with all statutory benefit standards pertinent to that nation owing to their network of 170 nations. They provide independent, global payroll solutions.
Remote Pricing: Monthly pricing is $699 per employee for EOR services. If it is for global payroll or overseas enterprises, then proposals have to be submitted to request a quotation directly from the technical team. The Contractor Management Plan from remote.com costs $29 per contractor, thus every month.
Flat fee with yearly discount.
BetterWay Devs (betterway.dev)
Our business model is defined as an Advanced Employer of Record. We charge a monthly fee as a regular EOR firm and provide all the legal compliance and legal contracts, but we go way beyond making our service ideal for both tech-savvy companies looking to hire Latin America Developers and also very attractive for this type of professional.
BetterWay Devs Pricing:Our regular fee is 16%, and it can be as low as 12% if you pay us upfront. Different alternatives to match your needs.
We also have an alternative to finance payroll for 30%. Specialized recruiting service included.
BetterWay Devs Pros:
- An unique bold model to employees, they have local contract stability plus a top USD exchange rate.
- We recruit for you, you don’t have to find the employees, and we don’t charge a recruiting fee upfront nor on success.
- We are your local partner, we look after the well-being of your development team, taking care of all the details on your behalf.
- Our fees are transparent and flexible.
- We help you provide perks like gym memberships.
- We rent computers, so you don’t have to ship them abroad.
- We are specialized in software developers
- While our service could be compared to staff augmentation, our fees can be compared with an EOR model making us very competitive.
- Our model maximizes salaries achieving long-term engagements.
BetterWay Devs Cons:
We currently work as an Employer of Record in Colombia, with our own entity registered. For all other south American countries we either hire as contractors or use another EOR as support.
Keep in mind that there are many alternatives, and the choice for the Best Employer of Record in Latin America would depend on your specific needs. Consider the type of profiles you are hiring, your need for sourcing talent, your company culture and values, and your budget to get the best provider.
If you want to know more about our model and services, schedule a call with me here https://calendly.com/pablovelasquez/betterway-dev-intro?month=2022-12
Recommended read: Recommended staff augmentation firms to hire long-term software developers in South america
BetterWay Devs CEO
I Love To Connect Opportunities With Great Latam Talent