A guide to strategic sourcing in Latin America

A guide to strategic sourcing in Latin America

Latin American (LATAM) employment is recovering from the COVID-19 crisis, but not without its challenges. In 2020, the region experienced a staggering 25 million employment losses. However, there is hope on the horizon. Formal and informal employment has rebounded to pre-pandemic levels in some countries. However, experts recommend that Latin American countries continue generating employment opportunities to attract available in-country workers to fill the talent gap and rebound the labour force.

Meike Niessen headshot - A guide to strategic sourcing in Latin America

Meike Niessen – Account Director

A 2023 Deloitte report highlights that strategic sourcing is becoming increasingly important in Latin America due to the region’s growing economies and increased competition. The report explains that companies must improve their talent procurement processes to remain competitive. Building a sustainable candidate pipeline for volume-based roles and recurring hires is critical to these efforts.

Accessing Latin America’s diverse talent pool

The diverse talent pool is crucial when sourcing permanent workers in LATAM – a region with a rich history and cultural diversity. With over 600 million people, it offers vast talent across various industries; however, while some countries – such as Mexico and Brazil – have large and skilled workforces, others may have limited availability of skill sets. Therefore, firms must thoroughly analyse the local talent market to determine which countries or regions can provide the necessary skills and experience.

How can organisations attract and retain regional talent?

Firms must unlock the power of permanent labour strategic sourcing to attract and keep the best talent in Latin America. They cannot afford to underestimate the essential role of a sourcer – it’s not just an entry-level position anymore. Employers need to move beyond simply filling vacancies and instead position themselves as an employer of choice by harnessing the skills and expertise of experienced sourcers.

Businesses must develop effective talent acquisition strategies to source talent in LATAM. This includes partnering with local staffing agencies, investing in employer branding, and leveraging digital technologies to reach out to candidates. Companies can also use social media and other online platforms to attract top talent and build relationships with universities and schools to find promising young graduates.

Strategic talent sourcing in Latin America allows businesses to tap into the region’s diverse talent pool, bringing in individuals with unique perspectives and experiences that can contribute to the organisations’ success. By sourcing talent from different countries and backgrounds, companies can create a multicultural workforce that combines various skills, ideas, and approaches. Strategic talent sourcing in LATAM involves a structured approach to identifying, attracting, and engaging talent to meet business needs.

This article serves as an employer guide to strategic sourcing in Latin America. It also explores the importance of sourcing permanent talent and how working with a recruitment partner like Pontoon can help firms stay competitive and build sustainable talent pipelines.

Lower labour costs

One of the primary benefits of sourcing full-time talent in Latin America is the lower labour costs compared to other regions. While some LATAM countries, such as Peru and Colombia, have relatively low labour costs compared to other areas, others, such as Chile and Argentina, may be more expensive. Companies need to weigh the cost of labour against the benefits of sourcing permanent workers in a particular location to ensure they make the most cost-effective decision.

Salaries and living costs in many Latin American countries are lower, making it an attractive option for businesses looking to save on costs. Companies can take advantage of this by setting up regional operations or hiring remote workers, which can help reduce operational expenses.

Regulatory and compliance guidance

Businesses must comply with local regulations and labour laws to establish operations in Latin America. This can vary depending on the country, making it essential for companies to understand the local labour market clearly. Strategic talent sourcing in LATAM involves working with talent partners, like Pontoon, who understand the local need, including labour laws and regulations.

Strategic sourcing can also help organisations meet government requirements for diversity and inclusion. By identifying and targeting underrepresented groups, companies can ensure they create a more inclusive workforce while meeting regulatory requirements.

Benefits of targeted in-country sourcing

In-country targeted sourcing campaigns can be an effective way to find high-quality permanent workers in Latin America. These campaigns involve partnering with local recruiting agencies or using branding and streamlined employer value props on social media and job boards to target specific regions or niche talent.

A specialised sourcing function is crucial for organisations as it adds value to every step in the candidate journey. This strategic element must not be siloed but integrated into a firm’s total talent acquisition strategy to achieve the best results. Having an end-to-end recruiter who understands the hiring manager’s experience and provides white-glove service is fundamental. Moreover, coordinating with key stakeholders with different skill sets helps identify the right talent based on specific needs and criteria. An experienced partner like Pontoon can help amplify your talent goals and target a particularly skilled population, seamlessly combining your employer value prop with best-in-class recruiting.

An advisory element, which Pontoon can provide, helps drive the overall process and is necessary for adequately evaluating hiring methods, creating synergies between multiple client and third-party stakeholders. Ultimately, an expert in finding the “needle in the haystack” candidate is a valuable specialised asset that organisations cannot ignore.

Pontoon’s strategic sourcing advantage in Latin America

We successfully deliver our Recruitment Process Outsourcing solution across different locations in Argentina, Brazil, Chile, and Mexico. Piloting engagement for meaningful change management within the region, we create and implement innovative recruitment processes designed to encompass the client brand through our marketing materials and grassroots campaigns.

Pontoon provides hands-on local white glove support through every step of the recruiting process while ensuring that our solution addresses each client’s pain points and business needs. Our Global Delivery Network (GDN), available 24/7, leverages human expertise, AI, automation, and data analytics to find candidates that perfectly align with your needs.

Our targeted sourcing delivers benefits, including helping clients deliver on their DE&I and ESG commitments. Pontoon provides access to untapped talent pools through the GDN, tapping into highly skilled individuals with unique perspectives and experiences that may have been previously overlooked.

Our RPO sourcing solution provides fast access to the best talent for permanent hires in all job types and locations, driving speed, efficiency, and cost savings. For example, Pontoon partnered with a Brazilian Internet technology company to enhance female candidate diversity in the technology sector. We created a multi-channel marketing campaign to attract untapped talent through social campaigns featuring female influencers, local non-profit collaborations, and innovative media strategies. With a focus on relationship management and skill-building, we sourced 200 female-identifying IT professionals in only four months, significantly increasing gender diversity for our client.

Ready to tap into Latin America’s diverse talent pool and strategically source the best permanent workers for your organisation? Don’t underestimate the vital role of a sourcer and enlist the help of a recruitment partner like Pontoon to leverage local expertise, compliance guidance, and innovative sourcing strategies.

Related Post
Thought Leadership