1. Compensation
Use the salary or monthly rate you expect for the actual role, seniority, language requirements, schedule, and market. A national benchmark can be a planning reference, but it should not replace a role-specific budget.
Hiring economics
LATAM Hiring Cost Guide
A responsible comparison starts with the costs you actually expect to bear—not a headline percentage. Use this framework to model U.S. and LATAM hiring on the same basis.
What belongs in a hiring-cost comparison?
Start with compensation, then add the costs that change with your employment or engagement model. For a U.S. employee that can include payroll taxes, benefits, insurance, recruiting, equipment, and management overhead. For LATAM talent, the comparable line items depend on whether you hire directly, use an employer-of-record arrangement, engage an independent contractor where appropriate, or work through a managed service.
Do not compare a U.S. employee's fully loaded cost with only a LATAM worker's take-home pay. Use equivalent scopes and make every assumption visible.
2. Employer or service overhead
Account for the costs attached to the engagement structure: benefits and payroll costs for employees, employer-of-record fees where used, or transparent service fees for a managed model.
3. Recruiting and replacement
Include internal recruiting time, agency fees where applicable, screening, onboarding, and the likely cost of restarting a search if the first hire does not work out.
4. Operating fit
Time-zone overlap, English proficiency, management load, equipment, security requirements, and travel can affect the real economics even when they do not appear in a salary comparison.
How should a U.S. company compare LATAM talent?
Model the same role twice. On the U.S. side, enter the salary you would realistically offer and your expected employer overhead. On the LATAM side, use the actual quoted or contracted rate for the engagement model you are considering. Keep recruiting, equipment, and one-time costs separate so you can see which assumptions drive the result.
Outland's calculator follows that approach: inputs are editable, assumptions remain visible, and the result is an estimate rather than a savings guarantee.
Run the hiring savings calculator →Questions to answer before choosing a model
- Is the role ongoing, project-based, part-time, or full-time?
- What working hours and U.S. time-zone overlap are actually required?
- Which entity will employ or contract with the worker, and what local legal advice is needed?
- Who handles sourcing, screening, onboarding, payroll or invoicing, and replacement?
- What data, systems, equipment, and security controls will the person access?
- What would make a more expensive candidate the better economic choice?
Model the cost, then evaluate the person.
Cost is one constraint, not the hiring decision. Once your budget is grounded, compare candidates on capability, communication, relevant experience, schedule, and the evidence that they can do the work.