US leaders expanding into LatAm often struggle to set compensation. Overpaying can create inefficiencies, while underpaying risks churn and poor performance. The goal is to create competitive, fair structures tailored to local markets.
Benchmark local salaries
Compensation must reflect regional norms and current market conditions.
- Market rates. Senior engineers in LatAm often earn 40%–60% less than in the US.
- City-specific variation. Bogotá, São Paulo, and Mexico City differ significantly.
- Annual reviews. Salaries should adjust to inflation and market changes.
Balance fairness with competitiveness
Compensation affects retention, motivation, and brand perception.
- Fair pay. Salaries should exceed local averages to attract top talent.
- Performance-based bonuses. Incentives help align rewards with outcomes.
- Equity options. Offering stock can build long-term loyalty.
Factor in benefits and perks
Salary is only part of the package and should be paired with the right benefits.
- Healthcare. Supplement local coverage where necessary.
- Learning stipends. Support professional growth and certifications.
- Flexibility. Remote-friendly policies add non-monetary value.
How Howdy.com simplifies compensation
Setting the right pay structure can be complex without local expertise. Howdy.com provides transparent guidance and infrastructure for fair, competitive packages.
- Transparent benchmarking. Data-driven insights for each LatAm market.
- Integrated payroll. Benefits and salaries managed locally.
- Retention focus. Compensation structures aligned with career growth.
- One invoice. Predictable monthly costs for US companies.
Conclusion
Fair, competitive compensation is the foundation of retention. Howdy.com provides the tools and expertise to build sustainable packages that attract and keep top LatAm talent.