Brazil is one of the most diverse economies in Latin America. As organisations look to expand into the region, it’s crucial to explore contingent hiring options to unlock Brazil’s skilled workforce.
Hitomi Sakuragi – Global Product Manager
Firms are looking for standardised approaches to hiring contingent labour, with a defined infrastructure that addresses compliance concerns. Employers must traverse local regulations, which vary depending on the type of work performed, the industry, and the worker’s classification.
Bianca Machado – Talent Solutions Director, Adecco RPO & Pontoon
This article explores key insights and provides actionable advice for employers considering an MSP in Brazil and seeking to optimise their contingent hiring in the country.
Brazil has a highly diverse skilled workforce due to laudable investments in education and skill-building over the past few decades. The country’s education system encompasses public and private institutions, with universities offering quality higher education across various fields. According to a recent report, around 67% of Brazil’s population is ready to be employed, indicating a large pool of talent for businesses. However, Brazil has been struggling with high unemployment after the economic recession. Significant changes have been introduced with the recent labour reform of 2017, including new hiring and termination practices.
Brazilian companies generally prefer permanent hiring, with contingent workers used on a limited basis for specific jobs. Companies must clearly understand the labour categories where contingent workers can be hired and what job functions they can perform. Employers must also comply with local regulations regarding benefits and other requirements for these workers. The Brazilian Labour Law (Consolidation of Labour Laws) governs all matters related to employment, including working hours, pay, overtime, vacation, and termination of employment. With Pontoon’s and Adecco‘s expertise in the local market, you can secure a competitive advantage through our unique blend of regulatory and hiring expertise.
If your firm is considering setting up operations and hiring in-country, we recommend working with an experienced talent partner to first identify business needs whether SOW (project-based engagement), temporary staffing, or staff augmentation. However, these categories don’t always align with governmental labour categories. For example, staff augmentation (or long-term worker engagement where organisations have direct influence over workers) is uncommon as many companies are risk averse regarding possible co-employment claims and litigation.
Here are a few more things we advise our clients to keep in mind when setting up temporary staffing and outsourcing activities in Brazil:
Finding the right talent in Brazil can be daunting, and companies must adopt appropriate talent acquisition strategies to ensure success. One such approach is to partner with local staffing agencies through talent partners like Pontoon.
Brazilian culture emphasises relationships and social connections, significantly impacting employment in the country. Networking and personal relationships are crucial in securing all job opportunities, and companies often prioritise hiring individuals recommended by trusted contacts. Successful social sourcing campaigns, job fairs, and other initiatives speak to personal relationships and build trust between employers and their staff.
Unlocking Brazil’s skilled contingent labour market requires a deep understanding of local labour regulations, and hiring practices. Companies must partner with local experts and invest the time and effort to co-create the right solution with an experienced talent partner.
In Pontoon’s case, our key strength in Brazil is our delivery network, backed by the experience and local market expertise of Adecco, our sister brand. For example, one of our manufacturing clients needed help hiring production technicians and quality control assistants based in Campo Largo. Teaming up with Adecco staffing, we recruited over 200 workers leveraging our on-site consultants, focused primarily on understanding the client’s delivery specifics and culture, and aligned our processes accordingly.
Ready to tap into Brazil’s diverse and highly skilled talent pool? Contact us today to simplify your contingent hiring strategy.
