...

How to Hire Employees in Colombia: Complete Guide

Tap into Colombia’s work landscape, top sectors, hiring trends and learn how to hire compliantly.

Hire Employees in Colombia: Remote Hiring Guide

Tap into Colombia’s work landscape, dive into top sectors, stay updated on hiring trends, and master the art of compliant hiring in this country.

Language

Spanish

Time Zone

UTC -5
(-1 hour EST)

Hub Cities

Bogotá, Medellín, Cali, Barranquilla and Cartagena

Top Sectors

Technology, Healthcare, Logistics & Supply chain

Currency

COP (Colombian Peso)
1 USD = 3,886 COP
(as of March 2024)

English Literacy

Ranked 7th
in Latin America

Language

Spanish

Time Zone

UTC -5 (-1 hour EST)

Risk free hiring

Bogotá, Medellín, Cali, Barranquilla and Cartagena

Top Sectors

Technology, Healthcare, Logistics & Supply chain

Currency

COP (Colombian Peso)
1 USD = 3,886 COP (as of March 2024)

English Literacy

Ranked 7th in Latin America

In recent years, remote work has gained significant popularity globally. As companies increasingly recognize the benefits of remote talent, Colombia has emerged as a promising market for those looking to expand their virtual teams.

If you are considering incorporating remote Colombian talent into your team, this guide aims to provide you with an overview of what you need to know to hire workers in Colombia: key considerations, popular roles, salary perceptions, and essential tips for finding, hiring, and retaining top remote professionals.

Workplace Landscape in Colombia

Colombia, known for its entrepreneurial and innovative culture, has undergone a notable shift toward digital transformation. Companies promote remote work opportunities, focused on candidates with advanced digital skills.

Economic growth and diversification in Colombia have opened diverse job opportunities, mainly through startups located in hub cities. Proficiency in digital tools for communication, collaboration, and productivity has become a must for various roles.

Colombia ranks among the top five technological regions in Latin America, with a population of over 50 million. It stands out for having one of the largest tech talent pools in the region in key areas such as software development, e-commerce, fintech, artificial intelligence (AI) & machine learning (ML), cybersecurity, health tech, and biotech.

With over 150,000 employees and around 360 software development companies, the tech talent sector is one of the major job creators in Colombia.

The demand for digital skills such as software development, data science, finance, cloud computing, and cybersecurity is on the rise.

U

Increasing leverage in the use of AI and data analytics to streamline the recruitment process, with tools that analyze resumes, assess candidate suitability, and even conduct initial screening interviews.

Workspace Landscape in Colombia

Characteristics

Talent Hubs in Colombia

Remote Roles to Hire in Colombia

Review Potential Candidates in Colombia

Labor Laws in Colombia

How to Hire Talent in Colombia

Holidays in Colombia

Labor Costs in Colombia vs USA

How to Pay Talent in Colombia

Start Hiring Remote Colombian Talent

colombia-side-banner
cities in colombia,colombian culture,colombia team,Holidays in Colombia,how to hire employees,Culture in colombia,minimum wage in Colombia,education in Colombia,jobs in Colombia,Colombian team,landscape in Colombia,Colombia 2024,work in Colombia,hiring in Colombia,Hire in Colombia,hire employees in colombia,Labor Laws in Colombia,Colombian talent

Characteristics of Colombian Talent

Remote Employment Growth

Post-pandemic, over 80% of Colombian companies maintain a remote work policy at least once a week, particularly in the administration and finance sectors.

Exceptional Education Levels

Colombia has Latin America’s largest share of tech graduates, being computing engineering as one of the most popular careers among students. Additionally, four Colombian universities are ranked among the region’s top 100.

Top Cities Proficient in English

In Colombia, English is increasingly adopted as a second language, particularly in cities like Bogota, Medellin, and Barranquilla, where proficiency levels reach moderate standards.

Talent Hubs in Colombia

To achieve successful hiring in Colombia, it is crucial to focus your search on cities exhibiting specific innovation trends in various sectors. Consider the following:

Bogotá: It has the highest number of tech firms, startups, and innovation centers, specializing in software development, e-commerce, fintech, AI & ML, and more

Medellín: Center of innovation, with tech companies and startups excelling in smart city tech, renewable energy, robotics, VR, gaming, edtech, and more.

Cali: Rising nest for tech companies and startups, particularly in telecommunications, logistics, transportation, agrotech, and food tech.

Barranquilla: A thriving entrepreneurial hotspot in logistics, trade, and services, appealing to investors and new talent.

Cartagena: Emerging as a talent center, this city thrives in tourism, hospitality, and services, making it an ideal spot for startups and entrepreneurs.

Cultural Considerations of Colombian Talent

Working with a remote Colombian team requires grasping their collaborative culture, which emphasizes respect, warmth, and inclusivity. This environment promotes cohesion and collective success, underlining the need for clear, ongoing communication to build trust and maintain productivity.

Additionally, Colombian remote teams particularly value adaptability and a personal touch in work interactions, seeing flexibility in schedules as a way to blend work with life’s other responsibilities.

conntect-with-colombia

Remote Roles to Hire in Colombia

When considering remote hiring in Colombia, certain roles stand out as particularly suitable for remote work, such as:

  • Software Developers and Engineers
  • Business Development Representative
  • Product Manager
  • Customer Success Manager
  • Product Designer
  • Marketing Manager
  • Operations
  • Accounting Manager
  • Technical Recruiter
  • Data Scientist
  • Content Writer

Review Potential Candidates in Colombia

claudia-m
sebastian-m
mariana -s

Labor Laws in Colombia

Colombia has robust labor laws designed to protect workers’ rights. If considering hiring staff in Colombia, it is crucial to be familiar with and comply with the following regulations:

Salary Payment: New employees’ salaries are set through employment contracts and collective agreements, either every 15 days or monthly.

Minimum Wage: Currently, the minimum wage in Colombia is approximately USD 333.26 per month. It is recommended to offer significantly more competitive salaries than the local average.

Holidays: Colombia celebrates 18 national holidays per year, including Labor Day and Colombia’s Independence Day.

Overtime Pay: Employees are entitled to receive compensation for overtime hours if they work more than 48 hours in a standard six-day workweek.

Vacation Rights: After 12 months of work, employees earn up to 15 days of paid vacation, usually taken consecutively.

13th Salary: All workers in Colombia are entitled to receive an additional salary equivalent to one month’s pay, in addition to their monthly salary.

Service Bonus: In Colombia, workers are entitled to receive a bonus equal to one month’s salary per year of service, split into two payments: one half in June and the other half in December.

Social Security Benefits: The social security system in Colombia encompasses workplace safety, healthcare, retirement by age, pension contributions, severance pay, as well as maternity and paternity leave rights, among other provisions.

By diligently complying with these labor regulations, you can ensure a fair and favorable working environment for your employees and business.

How to Hire Talent in Colombia

When considering recruiting talent in Colombia, it is crucial to understand the different options available and the legal implications involved. Here are three effective ways to hire in Colombia:

1. EOR (Employer of Record)

Delegate formal employment management, including payroll, taxes, benefits, and compliance, to Lupa, especially valuable in countries like Colombia with intricate labor laws. Focus on workforce management while Lupa handles salary and benefits negotiations.

2. Contractor

Choose contractors for flexibility and potential savings, but be wary of legal complexities in Colombia. Lupa’s tailored approach ensures compliance and seamless contractor hiring.

3. Staffing Model

Partner with Lupa to streamline recruitment and HR tasks, offering an efficient and scalable solution for global expansion plans.

At Lupa, we specialize in helping you hire new talent with three proven methods. Our goal is to offer you a seamless, risk-free hiring experience that provides peace of mind. With our 120-day guarantee, you can trust that if the hired candidate falls short, you’ll receive a free replacement.

Holidays in Colombia

To ensure respect for the culture and diversity of your Colombian team, it is important to consider providing days off on the following 18 national holidays:

January 1: New Year

January 8: Epiphany Holiday

March 25: Saint Joseph’s Day

March 28: Maundy Thursday

March 29: Good Friday

May 1: Labor Day

May 13: Ascension Day

June 3: Corpus Christi

June 10: Sacred Heart

July 1: Saints Peter and Paul’s Day

July 20: Declaration of Independence

August  7: Battle of Boyacá

August  19: Assumption Day

October 14: Day of Races

November 4: All Saints Day

November 11: Independence of Cartagena

December 8: Immaculate Conception Day

December 25: Christmas

By providing this time for employees to celebrate and honor these significant dates, you will strengthen an inclusive and respectful work environment that acknowledges local traditions.

conntect-with-colombia

Labor Costs in Colombia vs. USA

When hiring remote workers or contractors in Colombia, U.S. companies can enjoy significant savings and greater workforce flexibility, improving operations and stimulating business growth. Here is the annual average salary for highlighted remote roles in Colombia compared to costs in the United States:

Career areas
Colombia
USA
Technology and Data
$50 - 80k
$80 - 100k
Marketing and Sales
$10 - 28k
$50 - 100k
Finance and Accounting
$28 - 42k
$70 - 100k
Human Resources
$22 - 50k
$35 - 70k

How to Pay Talent in Colombia

Paying remote Colombian employees as a U.S. company involves navigating fluctuating exchange rates (between 3.822,05-3.975,74 COP this 2024), Colombia’s banking system, and adhering to both countries’ regulations:

bank-transfers

Bank transfers

A direct and simple payment method to any personal bank account, but it may involve high fees and longer processing times.

paypal

PayPal

PayPal offers fast and secure transactions internationally, but it may have relatively high fees and unfavorable exchange rates.

payoneer

Payoneer

This platform provides online money transfer and digital payment services, Payoneer is often used for freelancer and contractor payments.