Hiring Employees in Central America

Hiring Employees In Central AmericaHere in the United States, HR Administration and Employee Management both come with their own laundry list of policies, liabilities and costs—things like insurance benefits, unemployment, and worker’s compensation—all things that are outside of your core expertise. Expand your business into a new country or region such as Central America and this administrative workload could double if not triple.

For starters, here’s what you’ll need to investigate before hiring in Central America:

  • Although geographically tied to one another, each of the countries in Central America has its own unique labor law framework. You’ll need to comply with each country’s local laws, policies, employment practices and employee-protection laws.
  • Know how to find out more about your candidates. The majority of background checks conducted here in the US only have access to US records, information that will be irrelevant for hiring someone overseas.
  • Know how payroll works. You’ll likely need to implement a procedure to ensure that each bank account used to process payments is in accordance with internal policies but also with the particular country’s banking laws.
  • Wage and Hour Laws: What is the minimum wage in the country you wish to do business in? How many hours per week can workers work? Is there such thing as overtime?
  • Will new employees need to travel or work certain months of the year in a different country? If so, knowing how to process travel and working visas is important.
  • Benefits: The benefits you offer to your employees here in the US will likely be of no benefit to an employee in Central America. What types of health insurance benefits or comparable options are there in Central America?

Intimidated? Here’s a thought to make your life easier…

The process associated with hiring overseas shouldn’t discourage you from expanding. Many of the Central American countries have tremendous business opportunities.

For years, PEOs have provided thousands of US businesses with HR Administration and Employee Management Solutions. HR normally takes valuable time away from focusing on strategic growth and exposes you to huge financial risk if not handled to the letter of the law, but businesses that operate through the co-employment relationship hand these time consuming tasks and worries over to their PEO. The end result? Peace of mind and more time to focus on growing your business. You may have never considered utilizing a PEO until just now, when things are about to get sticky.

PEO Advantage is proud to announce that international PEO opportunities await you. Through our preferred network of vendors, we have options available to assist with hiring in Central America. More importantly, these international PEOs provide a level of expertise surrounding international benefits, payroll, employment law and more!

We know that selecting the right PEO in itself is a big task. So, simply contact us with your workforce expansion plans, and we’ll be happy to help you find the perfect PEO partner.


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