Colombia’s tech industry is booming, and companies from all over the world are starting to take notice. Tech education and innovation in the country are starting to rise with universities making efforts to better their programs. That’s leading to a boom in company formation in Colombia. It’s no wonder many foreign companies are gaining notable interest in hiring tech talent in Colombia.
Key takeaways
| Key sectors in Colombia | Key sectors in Colombia include |
| Steps to hiring in Colombia | A local advisor can help you with: Job adverts Networking CV assessment Interviewing Contract writing Onboarding |
| Legality of PEO in Colombia | PEO in Colombia is LEGAL? |
| Minimum wage in Colombia | COP$1,423,500 (aprox USD$330) |
| Employer contributions in Colombia | Total contributions is roughly 28.5% of an employee’s salary, with employers covering 20.5% and employees contributing 8%. |
5 tips for hiring tech talent in Colombia
- Define your needs and requirements.
- Use Online Job Platforms.
- Leverage your Network.
- Consider Cultural Fit.
- Look for Soft Skills.
1 – Define your needs and requirements for hiring tech talent in Colombia
Before you start hiring or looking for potential team members, it’s important to clearly define your needs and requirements for the specific roles you’re looking for.
A well-organized process will help you narrow down the best candidates and filter out unfit ones to save up valuable time.
This includes the skills and experience you’re looking for, the level of English proficiency required, and any other criteria that are important for your project or team.
By having a clear understanding of what you’re looking for, you’ll save time and resources.
2 – Use online job platforms to hire software developers in Colombia
This should be a standard for anyone looking to hire, especially in a foreign country.
Online job platforms are the most popular way for Colombians to find remote jobs; LinkedIn and Glassdoor are great for hiring in any part of the world, while Computrabajo is specific to the Colombian market.
These platforms allow you to post job openings, search for candidates, and connect with potential hires.
When posting your job opening, be sure to include detailed information about the position, including the skills and experience required, as well as the salary range and any other benefits or perks you’re offering.
One great idea is to include a “day in the life” section so job seekers understand what specific tasks they will be doing in the role.
3 – Leverage your network
Colombian business culture is largely based on friendly relationships, and building trust over time.
As such, networking and finding trusting relationships with different people in the tech sector are really important.
Attend local tech events, conferences, meetups, and connect with other professionals in the industry. You could meet tech professionals that can recommend the best talent, or even find your ideal hire directly!
You can also reach out to top universities (Universidad de Los Andes, Universidad Nacional, and Universidad Javeriana are the most notable) to connect with recent graduates and upcoming talent.
The sooner you build a network of trusted professionals the better you’ll do.
4 – Consider cultural fit
Cultural fit is an important consideration when hiring anywhere in the world, but it’s vital when hiring software developers in Colombia; depending on where you’re looking, the work culture can be very similar or vary greatly from your own.
Inland cities like Medellín and Bogotá are more formal in their work culture, whereas coastal cities like Cartagena tend to have a more relaxed and informal way of work; none is better than the other, but one might adjust better to your specific needs.
It’s important to look for candidates who align with your company’s culture and values, as well as those who have a good understanding of the local business culture.
When interviewing candidates, be sure to ask questions that help you assess their fit with your team and company culture.
5 – Look for soft skills
While technical skills are important, soft skills are also a key consideration when hiring tech talent in Colombia.
Look for candidates who have strong communication skills, can work well in a team, are assertive, and are adaptable and open to learning new things.
Soft skills are often what sets top performers apart from the rest, so it’s important to evaluate candidates on both technical and non-technical abilities.
How much it costs to hire people in Colombia
The cost of hiring in Colombia is less than it would be in richer nations, yet workers are often well qualified and skilled. With significant investment in education over a number of years, the Colombia now has a surfeit of graduates in the labor market that it cannot provide local jobs for. This means that the labor market in Colombia is relatively competitive for an incoming prospective employer.
The minimum wage in Colombia is COP$1,423,500 (aprox USD$330). However, this is not necessarily the rate that you should be offering. In top sectors that require qualified and skilled workers, you will need to offer at least market standard rate. A local hiring expert in Colombia will be invaluable in making sure that you are not overpaying or offering unattractive rates that make it hard to recruit quality talent.
Employers in Colombia must make social security contributions equal to 20.5% of an employee’s wage. The employer must withhold tax from an employee’s remuneration on a progressive scale according to salary. There is an annual bonus known as prima in Colombia, which is paid in two parts: midyear and Christmas. Each payment is equivalent to half a month’s base wage.
Two options for hiring: establish a company or PEO
When entering the market and hiring in Colombia, there are essentially two options available to investors and entrepreneurs. The most common way of doing so is through full company formation to establish a presence in the jurisdiction. However, this may take time and effort, meaning that it is worth considering another option as well, using a Professional Employer Organization (PEO).
PEO: fast and agile
A Professional Employer Organization (PEO), also known as a ‘Registered Employer’ or ‘Employer of Record’, is an organization that provides and supports companies with their human resources functions, from the early stages of recruitment to the payment of taxes and benefits. PEOs undertake the fundamental and time-consuming tasks of human resources teams, allowing companies to focus on the growth and success of their business.
The services of a PEO are particularly useful when businesses seek to hire a local workforce but do not wish to establish a local legal entity. Simply put, a PEO makes it easy to hire staff in Colombia through an outsourced provider. It means you can enter the market and start hiring quickly, without having to commit to full entry until you are sure that it is what you want to do. It is worth noting that regionally there is beginning to be more regulation and PEO in Colombia may not be viable in the future.
The long-term option: direct hiring
This is the gold standard of hiring in Colombia, as it will give you full control over your employees as well as being sure that you will be compliant for the long term. It also gives you a higher status with potential job applicants, who will see you as a more secure long-term employer.
Before you start hiring employees in Colombia, you will first need to get a sense of the legal, financial and cultural lay of the land. Things such as how to sort out the red tape associated with incorporation and how to manage payroll, for example. With a permanent legal presence in Colombia, you will be fully liable for compliance with local law.
A local expert will help when hiring in Colombia, as they will have an extensive network of qualified professionals for top jobs as well as a good idea of the local labor market. They will be able to advise on the best rates to offer and what type of profile you should be targeting. With anti-discrimination legislation important in Colombia, especially for top jobs, they can make sure you are making a fair offer which complies with local law.
After placing adverts and receiving applications, you will want to move towards interviewing potential candidates. This should be done by both a team manager and HR representative at minimum, to make sure that everything is watertight in legal terms. You may want to include other people into the process in order to make a better assessment of the candidate.
It is entirely possible that you may wish to have a second interview, possibly involving other team members as discussed above. It is also common in the region and when hiring in Colombia to provide candidates with an aptitude task to be completed. This usually takes the form of a dummy task that simulates the type of job that will be done in the future and confirm that they possess the skills cited on their CV.
Contracts, too, will be important. A local advisor will be up to speed on what you can and cannot offer. Bear in mind that you will have to follow all the rules established by Colombia. In Colombia, this includes clear conditions for termination of a contract for fixed term or project-based work.
Finally, your local advisor will be able to help you with the stages of both the hiring and onboarding process. They will make sure that you comply with standard requirements such as compulsory medical checks and make sure that any probation period is within the boundaries of those established by the labor law in Colombia. This is generally three months.
Labor laws and regulations in Colombia
Before making a move into the jurisdiction, it’s important for companies to understand the labor rights and responsibilities of both employers and employees in Colombia. What follows are a few things that foreign business owners should know about when it comes to the local work culture:
- Work hours – The standard workday in Colombia is eight hours, with the standard workweek up to 46 hours.
- Public holidays – There are 22 public holidays in Colombia each year.
- Vacation time – Workers in Colombia are eligible for 15 days of vacation annually. Women are entitled to 18 weeks’ maternity leave.
- Contract types – There are essentially two types of contract in Colombia, indefinite employment and fixed-term employment although others exist in specific circumstances
FAQs on hiring tech talent in Colombia
Based on our extensive experience these are the common questions we receive from clients when looking at hiring tech talent in Colombia.
1. Why hire talent in Colombia?
Hiring tech talent in Colombia can be a great way to build a strong and competitive team, and it can be a great investment for companies looking to expand their business in Latin America.
2. Can I hire top talent in Colombia?
Competitive pricing, a strong educational system, and extremely qualified professionals make hiring software developers in Colombia a great choice.
3. What is the level of English for professionals in Colombia?
University graduates are expected to complete English language proficiency to at least an intermediate level. In professional fields, especially tech, English is a pre-requisite among high-skill workers.
4. How many software developers are there in Latin America?
The Association of Computer Science and Information Technology states that there are over 2 million tech professionals within Latin America, with Colombia an important part of that.
Biz Latin Hub can help you with hiring tech talent in Colombia
At Biz Latin Hub, we offer a comprehensive range of market entry and back-office solutions across Latin America and the Caribbean.
With offices in Bogotá, Cartagena, and other key cities in the region, along with trusted partners in other markets, our extensive reach makes us well-suited to support cross-border operations and multi-jurisdiction market entries.
As well as knowledge about hiring software developers in Colombia, our portfolio of services includes hiring & PEO accounting & taxation, company formation, bank account opening, and corporate legal services.
Contact us today to find out more about how we can assist you in finding top talent or otherwise doing business in Latin America and the Caribbean.
If this article on tips for hiring tech talent in Colombia was of interest to you, check out the rest of our coverage of the region. Or read about our team and expert authors.
