2024 Developer Hiring Trends in Latin America: What You Need to Know

Latin America’s tech scene, often dubbed the next Silicon Valley, is buzzing with energy. Ripe with talent, fresh investment, and attractive perks for startups, LatAm and its skilled developers are attracting U.S. companies for all the right reasons.

As 2024 unfolds, several pivotal trends are set to change how you hire, retain, and support your LatAm engineering teams. Using these developer hiring trends in Latin America to your advantage will attract top-tier talent, cultivate a dynamic work environment, and significantly boost retention rates. It’s the key to staying ahead, creating a thriving work environment, and beating the growing talent crisis.

Globally, rising unemployment, widespread layoffs, and growing job security concerns are prompting engineers to reevaluate their work preferences and career values. For those hiring LatAm remote workers, now is the perfect time to reassess your organizational vision and ensure your remote roles align with what engineers need.

Our State of Remote Engineering report covers these essential insights, including economic uncertainties, salary and equity considerations, perspectives on artificial intelligence, job seeker preferences, the evolving interview process, and key insights for business leaders hiring nearshore developers. Understanding these regional trends is crucial for both developers and businesses. Download our report to learn more about the global state of remote hiring and read on to discover Latin America’s key developer market trends.

Latin America is quickly becoming a hotspot for tech innovation and growth. Several factors contribute to this boom, including a large pool of skilled professionals, favorable economic conditions, and supportive government policies.

Rapid growth and talent availability

Latin America is experiencing a tech boom, driven by a large, highly skilled, and well-educated workforce. Over two million technical professionals are currently in the region, with more than 20,000 new engineers entering the workforce annually, representing 28% more growth compared to the US. Forbes notes that Mexico and Brazil alone produce nearly 605,000 software engineering graduates each year. In Mexico, roughly three times the number of engineering and technical students graduate annually compared to the United States.

Favorable economic conditions

Lower labor costs, costs of living, and favorable exchange rates make LatAm an attractive option for North American companies. These factors enable significant savings when hiring in the region. Additionally, private capital investments in LatAm have hit $29.4 billion, further fueling the tech boom.

Successful start-ups and investments

Latin America is home to several hugely successful start-ups, including Chile’s delivery service Cornershop, and Brazil’s fintech business Nubank. These are just two examples of start-ups that have achieved unicorn status, each valued at over $1 billion. 

The region has also seen a significant rise in fintech companies. In 2018, LatAm had just 1,116 fintech startups. By 2021, that number had grown to 2,482, comprising 23% of the world’s fintech businesses, with 80% of LatAm’s fintech companies based in Brazil. Tech industry giants like Google, Dell, and Uber are opening offices across Latin America, and companies like Revolut are launching their services in countries such as Brazil.

Supportive government policies

Governments across Latin American countries are recognizing the importance of technology and digitization. Countries like Mexico, Chile, Colombia, and Brazil are introducing policies and initiatives to support entrepreneurs and start-ups. 

Legal reforms are also being implemented to encourage foreign companies to conduct business in the region. For example, Uruguay offers a 100% income-tax exemption for software exports, making Montevideo a hub for technology, and for video game production, in particular. In the last five years, Mexico has seen its number of tech start-ups triple.

Want a 360º view of global developer trends? Download our 2024 State of Remote Engineering

Strategic location and language advantages

The U.S. is home to over 42 million Spanish speakers, and most LatAm countries speak Spanish as their primary language. This linguistic compatibility, along with rising levels of English proficiency in the region, makes communication seamless, but as you’ll see, there are still challenges in this area. Close time zones between North America and LatAm make scheduling and effective collaboration easier than hiring in Europe, for example.

Reduced reliance on Asia

The post-pandemic push to reduce reliance on Asia has directed more North American companies towards Latin America. Tension between the U.S. and China, along with production delays in China, have made LatAm a more reliable partner. According to Bloomberg, growing geopolitical tensions and pandemic-driven lockdowns in China have contributed to more companies adding production capacities outside of China. As a result, more U.S. and Canadian tech companies are setting their sights on Latin America as a closer, more reliable partner.

Latin America is home to 1.3+ million software engineers and tech professionals, with more than 20,000 new engineers entering the workforce annually. That’s 28% more growth compared to the US. With an average of 30 available candidates per open role, LatAm is three times less competitive for hiring engineers and skilled workers than in the majority of US tech hubs.

Thanks to strong technical universities, city policies prioritizing technology growth, and entrepreneurial-friendly business laws lowering barriers to entry, a new reality for the continent is taking shape. Between its vibrant ecosystems, record-breaking venture capital investments, and unicorn startups popping up across the continent, it’s no surprise that Latin America is one of the hottest regions for building remote technical teams right now.

Experts predict a shortage of four million developers by 2025. With this anticipated shortfall, North American tech companies are turning to Latin America’s workforce to bridge the gap. U.S. companies have increased their year-on-year hiring in LatAm by 50% in 2023, highlighting the growing recognition of LatAm’s talent pool. In the past year alone, international companies’ desire to hire in the region has increased by 156%.

For US tech companies looking to stay competitive, tapping into the LatAm remote workers is a smart move. Here’s why US teams should consider hiring LatAm developers:

• Economic efficiency: Lower labor costs and favorable economic conditions make hiring LatAm developers a cost-effective solution. Salaries in LatAm are 50-60% lower than in US tech hubs. This provides significant savings while still accessing high-quality talent. 
• Enhanced team diversity and performance: Hiring from multiple markets not only diversifies your team but also boosts creativity, performance, and financial returns. According to a McKinsey, diverse teams can increase financial returns by 35%.
• Strong educational foundations: Latin America’s strong educational system produces a large number of skilled developers. 
• Convenient timezones: Close time zones also allow for cohesive team scheduling, making collaboration with LatAm developers as seamless as working with local teams.
• Strategic location and reliable partnerships: The post-pandemic shift to reduce reliance on Asia has made LatAm a more attractive partner for North American companies.

Case study: How PresenceLearning scaled their LatAm team by 150% in 3 months with Terminal

PresenceLearning, a leader in live online special education services for K-12 schools, faced a surge in demand during the pandemic. To address this, they needed to quickly double their engineering resources. In early 2020, they partnered with Terminal to build a remote global tech team. With Terminal’s help, PresenceLearning expanded their engineering team by 150% within three months, integrating ten skilled engineers from across the US and Latin America.

Turning to Latin America has significantly expanded the candidate pool for us. There’s so much good talent. I studied in Latin America myself, so I know firsthand the kind of creative thinking and quality engineers that you’ll find there. Terminal is ‘team augmentation’. It’s anti-outsourcing. The people that Terminal finds are integrated into our team, work-wise, culturally, in every respect, and help us build products and services we are proud of.

Russ Greenspan, CTO of PresenceLearning

What’s more, the time zone alignment with their New York and San Francisco teams facilitated seamless collaboration. “This alignment has been crucial in maintaining productivity and efficiency,” Russ noted.

Now, let’s explore the exciting insights from our 2024 survey on developer hiring trends in Latin America. We’ll cover what developers value most when working with companies and the key factors driving their choices and satisfaction.

Trend #1: Economic uncertainty means Latin American engineers want clear plans and better pay

Economic uncertainty is making LatAm workers crave more clarity and better pay. 

Our data shows that 58% of LatAm engineers want clear information about where their companies are headed. This desire for transparency isn’t just a passing trend—it’s a crucial factor in job satisfaction and retention. Engineers want to feel confident about the stability and future direction of their employers, especially in uncertain economic times. Clear communication about business goals, financial health, and future plans can significantly alleviate concerns and build trust.

A significant 78% of Latin American engineers are planning to look for new jobs in the next 12 months, with nearly half (48%) driven by the need for higher salaries. Unlike their peers in the US and Canada, equity isn’t a major concern for these job seekers. Instead, they prioritize clear, straightforward salary information. In regions where economic instability can be more pronounced, financial security becomes a top priority. Engineers are looking for roles that not only match their skills but also offer financial rewards that provide stability and peace of mind.

Globally, 69% of non-US engineers believe that salary transparency would help them better understand the job market, and 76% want all job listings to include salary ranges, Salary transparency can demystify the hiring process, making it easier for candidates to gauge whether a role meets their financial needs and expectations. It also reflects a company’s commitment to fairness and equality, which can be a significant draw for top talent.

Key Recommendations

Communicate company vision clearly: Regularly update employees on company goals and future plans. Use meetings, newsletters, and internal communications to keep everyone informed. Provide competitive salaries: Offer salaries that match or exceed industry standards. Conduct regular market salary reviews to stay competitive. Include salary ranges in job listings: Be transparent about salary ranges in job postings. Ensure candidates know what to expect from the start. Address economic concerns directly: Discuss economic factors openly with employees. Provide context on how these conditions impact the company.

Want a 360º view of global developer trends? Download our 2024 State of Remote Engineering

Trend #2: Developers Want to Work From Anywhere—Not the Office

Return to the office? Developers say “no thanks.” Remote work remains the preferred choice among global developers. Our survey reveals that 63% of developers want location-independent teams, 54% prefer to work from home full-time, and only 4% are interested in going to the office five days a week. The results highlight a significant disconnect between developer preferences and company policies, as many businesses push for hybrid or full return-to-office models. 

Developers value flexibility and autonomy, making it clear that remote work is not just a trend but a fundamental shift in how they want to work. 

Key Recommendations
Embrace remote work: Offer flexible, location-independent roles. Invest in remote infrastructure: Make effective collaboration easy and seamless by investing in the right tools, and considering new work models.  Support work-life balance: Establish clear remote guidelineswith clear expectations and flexible hours.

Trend #3: Language learning is key for talented developers in LatAm

One trend that really stands out for engaging Latin American developers is the focus on language learning. According to our report, 45% of Latin American engineers prioritize language learning opportunities. This is especially important considering the language barriers they face compared to their peers in Canada, the US, and Europe.

Offering strong language learning programs not only helps bridge communication gaps but also creates a more inclusive and cohesive team environment. When everyone can communicate effectively, collaboration improves, misunderstandings decrease, and overall productivity goes up.  

Language learning also ties in nicely with other popular engagement strategies. For example, frequent team-building activities across regions (46%) are much more effective when language barriers are minimized. Plus, maintaining clear and transparent communication channels (43%) is a lot easier when everyone is comfortable with the working language.

Another key aspect is implementing time-flexible meeting schedules (45%) to accommodate different time zones. This flexibility ensures that all team members can join important discussions and feel valued, no matter where they are.

Combining language learning with initiatives like mentorship programs that bridge cultural differences (40%) and cross-cultural training sessions (34%) can really amplify the benefits. These programs not only boost language skills but also enhance cultural understanding, making the team more cohesive.

Key Recommendations

Offer comprehensive language learning programs: Implement language learning opportunities to help bridge communication gaps. Provide resources like online courses, language software, and opportunities for practice to ensure all team members can communicate effectively. Encourage team-building activities: Organize frequent team-building activities that cross regional boundaries. Plan virtual events and collaborative projects that promote interaction and strengthen team bonds. Maintain clear and transparent communication channels: Ensure that communication channels are open, clear, and transparent. Regularly update and share important information to keep everyone informed and aligned. Implement mentorship programs and cross-cultural training: Develop mentorship programs that bridge cultural differences, enhancing both language skills and cultural understanding. Offer cross-cultural training sessions to help team members appreciate and navigate cultural nuances.

Trend #4: Disorganized interviews are driving Latin American developers away

Interviewing for jobs can be a real headache for engineers, and Latin American developers are no exception. Around 70% of engineers report long delays during the interview process. This isn’t just annoying – it can actually hurt recruitment. In fact, 57% of engineers would turn down a job if they had to go through too many interview rounds.

Latin American engineers, in particular, seem to face even more challenges, with 60% feeling the interview process is just too disorganized. Messy processes frustrate candidates and reflect poorly on the company’s efficiency and professionalism.

These stats paint a clear picture: the current interview processes are failing to meet the needs and expectations of engineering candidates. Long delays and too many interview rounds are the biggest issues, causing nearly 70% and 64% of frustrations respectively. Disorganization and generic, cookie-cutter interviews also rank high on the list of complaints.

Another significant issue is the technical assessment phase. While necessary, many engineers (60%) prefer take-home coding challenges over live coding tests. Take-home assignments allow candidates to demonstrate their skills in a more relaxed, real-world environment. In contrast, only 21% of engineers favor live coding assessments, which can be stressful and may not accurately reflect their abilities.

What’s more, 44% of engineers are frustrated by interviewers who don’t understand the role they’re hiring for. This lack of understanding can lead to irrelevant questions and an inefficient interview process. Video interviews and whiteboard tests, while useful tools, also have their downsides, with 44% and 35% of engineers respectively finding them frustrating. Traveling long distances for in-person interviews is another pain point, affecting 15% of candidates. In an era where remote work is becoming the norm, requiring candidates to travel can seem outdated and unnecessary.

Key Recommendations

Reduce interview rounds: Limit the number of interview rounds to essential ones only. Ensure each round has a clear purpose and adds value to the evaluation process. Minimize delays in hiring: Aim for a quicker turnaround time between interview stages. Keep candidates informed about their status to reduce anxiety and frustration. Organize and customize interviews: Avoid generic questions. Tailor interviews to the specific role and candidate’s background. Ensure interviewers are well-versed in the technical requirements of the position. Revamp technical assessments: Offer take-home coding challenges as the primary method of technical assessment. This approach not only reduces stress for candidates but also provides a more accurate measure of their skills. Train interviewers: Ensure that those conducting the interviews have a deep understanding of the role and the skills required. This can prevent irrelevant questioning and improve the overall interview experience. Embrace remote interviewing: Leverage video interviews and remote assessment tools to make the process more convenient for candidates, especially those who would otherwise need to travel long distances.

Trend #5: Pay, benefits, and stability are top priorities for Latin American developers

When it comes to developer hiring trends for Latin American developers, they are very much in line with their global peers. Our data shows that 87% of Latin American engineers rank pay as their top priority when choosing a company, slightly above the global average of 85%. Benefits follow closely, with 66% listing them as crucial, highlighting the importance of comprehensive health plans and perks. Stability also ranks high, with 60% of Latin American developers placing it in their top five concerns, reflecting a strong desire for job security amidst economic uncertainties.

These insights underscore the necessity for companies to offer competitive salaries and robust benefits packages to attract and retain top talent in Latin America. It’s clear that while exciting office spaces and cultural programs are nice-to-haves, they don’t outweigh the fundamental need for financial security and stability.

Key Recommendations

Offer competitive salaries: Ensure your pay packages are attractive and in line with industry standards. Provide comprehensive benefits: Health plans, retirement packages, and other perks are crucial. Ensure job stability: Communicate your company’s stability and long-term vision. Given the high importance placed on job security, make sure to highlight the stability and business growth prospects of your company. Regular salary reviews: Conduct regular reviews to ensure salaries and benefits remain competitive. Adjustments based on market trends and employee performance can help retain top talent. Transparent communication: Be open about your company’s financial health and future plans. Transparency can reassure employees about their job security and align them with the company’s vision.

Trend #6: Flexible hours are highly valued

After pay, benefits, and stability, flexible hours are a big deal for Latin American developers, with 62% saying it’s a top priority. Compare that to the US, where only 30% of engineers feel the same, and you can see just how important work-life balance is in Latin America. Offering flexible schedules helps developers juggle different time zones and personal commitments more smoothly.

Besides flexible hours, Latin American developers also value learning and development opportunities, with 44% ranking it as important. This is higher than the global average, showing a strong desire for continuous improvement, skill enhancement and language learning options mentioned above. Additionally, 35% of Latin American engineers place a high value on company culture, emphasizing the need for an inclusive and engaging work environment.

Key Recommendations

Promote work-life balance: Give your team the flexibility they need to balance work and life. 62% of Latin American developers say flexible hours are super important, so make it a priority. Accommodate time zones: Adjust schedules to fit different time zones. This makes real-time collaboration easier and lets everyone work when they’re most productive. Offer remote work options: Let your team work from anywhere. Remote work not only meets the demand for flexible hours but also widens your elite talent pool. Flexible leave policies: Create flexible leave policies that allow employees to take time off when they need it. This can boost job satisfaction and prevent burnout. Regular check-ins: Have regular check-ins to see how flexible hours are working for your team. Use their feedback to tweak and improve the system.

What’s trending for LatAm developers in 2024

It’s essential to stay on top of the latest developer hiring trends in LatAm if you want to attract the best talent. Understanding what drives Latin American engineers can give you a real edge in recruitment. Here’s a quick rundown of the key insights and trends shaping the remote developer market in this vibrant region:

• Clarity on company direction: 58% of LatAm engineers seek clear information on where their companies are headed.
• Job search intentions: 78% of LatAm engineers plan to look for a new job within the next 12 months, with 48% driven by salary expectations.
• Equity concerns: Equity is less important for LatAm engineers than their US and Canadian counterparts, ranking as the least important factor when choosing a company.
• Time zone challenges: 38% of Latin American engineers struggle with time zone differences.
• Top criteria for choosing a company for LatAm developers:
  • Pay: 87% consider it the most important factor.
  • Benefits: ranked second in importance.
  • Stability: chosen by 66% as the third most important factor.
  • Flexible hours: preferred by 62%, ranking fourth.
• Interview process frustrations: 60% of LatAm engineers are frustrated by disorganization during the interview process.

Building tomorrow’s tech teams in Latin America

The developer landscape in Latin American countries for 2024 is evolving, shaped by trends like the increased demand for flexibility and remote work and changing job market dynamics. Engineers are looking for roles that offer more autonomy and employers need to align their vision with these new preferences to stay competitive.

To navigate these changes successfully, developers and businesses should stay updated on emerging trends and adjust their strategies accordingly. For a deeper dive into these insights, check out our comprehensive State of Remote Engineering report. Stay ahead of the curve and prepare for the dynamic changes that lie ahead.

Terminal’s active Latin American markets include approximately 500,000 LatAm remote workers developers and related tech professionals. This deep pool of elite LatAm developers offers a valuable resource for US companies looking to save on employer costs while accessing top-tier talent. Start browsing our pool of vetted LatAm developers today. 

By leveraging the unique strengths of the Latin American market, companies can fine-tune their remote recruiting strategies and secure the talent needed to drive innovation and growth.