How to Hire Employees in Colombia: Complete 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 and establish remote work in Colombia.
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 employees 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.
Hiring Trends in Colombia 2024
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.
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
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
Education in Colombia is robust, with 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. These cities in Colombia are crucial hubs for hiring talent.
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.
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
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.
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
A direct and simple payment method to any personal bank account, but it may involve high fees and longer processing times.
PayPal
PayPal offers fast and secure transactions internationally, but it may have relatively high fees and unfavorable exchange rates.
Payoneer
This platform provides online money transfer and digital payment services, Payoneer is often used for freelancer and contractor payments.
Global payroll providers
Cryptocurrencies
Like Bitcoin or Ethereum offer decentralization and potentially lower fees, but their regulatory concerns may not suit all employees.
Start hiring remote Colombian talent with Lupa
Hiring Colombian employees can diversify your team and boost your Latin American operations. However, cultural knowledge is critical to successfully navigate the hiring process in Colombia. Understanding Colombia’s labor laws and landscape in Colombia will help ensure a smooth hiring process.
At Lupa, we excel in aiding US companies hiring in Colombia, to swiftly recruit, interview, and onboard remote talent throughout Latin America, including Colombia, without any complications or risks.
Our team of experienced recruiters has a deep understanding of the unique requirements of remote contractors and the vast talent pool in Latin America. Using an automated approach and our expansive talent network, we ensure that you find the best fit for your needs in tech, finance, marketing, or other sectors.
For further guidance on compliant hiring practices in Colombia, read our related articles or schedule a consultation with our experts for personalized assistance.