Chile Talent Market Overview
Market Appeal: | Chile’s IT sector is growing rapidly, with a market expected to grow by $3.9 billion from 2022-2027. |
Most common roles US companies hire in Chile: | Chile’s IT sector includes AI integration, digital information, and IT services like education, training, consulting, development, integration, and hardware/software support |
Skill Density: | The country has 100k tech professionals and 4,000+ companies involved in software services, making it a significant hub for tech talent in Latin America |
Cost Advantage of hiring in Chile: | The average salary for software engineers in Chile is 50-60% less than those in the U.S. The average salary in Chile typically falls below levels seen in other South American nations like Mexico |
Ease of Hire: | Chile is ranked #1 in LATAM for ease of business, creating a favorable environment for tech hiring |
Working Hours Overlap with US time zones: | Chile is located in GMT-4, the same as EST, allowing up to 8 hours of overlap with U.S. companies |
Typical Working Week in Chile | In 2024, the weekly schedule will be 44 hours, in 2026, it will be 42 hours, and by 2028, it will reach the intended 40 hours per week. |
Public and Local Holidays in Chile | 17 public holidays |
Most common talent hiring / engaging methods that US companies use in Chile | Hiring in Chile is facilitated by various methods, including contracting, staff augmentation, and Employer of Record (EOR) service |
The most common payment methods that US companies use to pay talent in Chile | Popular payment methods include Parallax, bank transfers, cryptocurrencies, PayPal, Wise, Payoneer, Stripe, and Skrill. These methods are chosen for their ease of use, security, and speed of transaction processing, especially for international payment |
Cultural Compatibility with US companies | When hiring tech talent in Chile, US companies benefit from high English proficiency, particularly in Santiago, and cultural similarities such as professional work ethics and a focus on quality outcomes. |
English level by EF EPI score in Chile | Chile is Above the global average. It was ranked 52nd out of 113 countries. |
Average Retention Rates in Chile | Chile was ranked as the highest Latin American country for employee retention |
Global brands that hire in Chile | Microsoft, JPMorgan Chase & Co |
Talent Market Capacity | 100k tech professionals, including 60k software engineers |
EMPLOYER TAXES | – |
Tech Talent Market Capacity
Chile Infrastructure:
Internet Connectivity:
As of 2023, internet has become a crucial part of Chilean society, with approximately 17.69 million people, or 90.2% of the national population, having access to an internet connection.
This figure aligns with the reported 17.7 million internet users in Chile in the same year, marking a substantial increase of about 7.6 million online users over the previous decade.
The Chilean government has introduced a comprehensive plan, focusing on areas without connectivity and aiming to bridge the digital gap. This plan includes multisectoral work with a focus on regulation for connectivity, digital infrastructure, and ensuring connectivity for everyone.
Mobile Penetration:
Chile boasts the highest penetration of mobile connections in the region, with a staggering 147% rate or 28.84 million cellular mobile connections.
This high rate of mobile penetration is reflective of the widespread adoption of mobile technology in the country, significantly exceeding the total population count.
Download and Upload Speeds on Mobile Networks:
For mobile network experience, the fastest overall experience in Chile is observed on WOM’s network, with average download speeds of 24.5Mbps and upload speeds of 8.8Mbps
Chilean Salary Insights
Common Leave in Chile
Paid time off: 15 days of paid annual leave
Maternity leave: 18 weeks of paid maternity leave
Paternity leave: 14 calendar days of paid paternity leave
Common Benefits in Chile
Meal Vouchers
Health Insurance
Flexible/Remote Work
Life insurance
Holiday schedule in Chile 2024
- Monday, January 1, 2024New Year’s Day
- Monday, January 8, 2024Epiphany Holiday
- Friday, March 29, 2024Good Friday
- Saturday, March 30, 2024Easter Saturday
- Wednesday, May 1, 2024Labour Day
- Tuesday, May 21, 2024Navy Day
- Thursday, June 20, 2024National Day of Indigenous Peoples
- Saturday, June 29, 2024Feast of St Peter and St Paul
- Tuesday, July 16, 2024Our Lady of Mount Carmel
- Thursday, August 15, 2024Assumption Day
- Wednesday, September 18, 2024Independence Day
- Thursday, September 19, 2024Army Day
- Monday, October 14, 2024Day of the Race
- Thursday, October 31, 2024Reformation Day
- Friday, November 1, 2024All Saints’ Day
- Sunday, December 8, 2024Immaculate Conception
- Wednesday, December 25, 2024Christmas Day
Payments
In Chile, tech talent typically use a mix of local and international payment methods: Bank Transfers, PayPal, Skrill, Western Union, Payoneer and also Cryptocurrencies.
Payment Frequency: Typically, payments are made monthly.
Talent Acquisition
Hiring developers in Chile can be more cost-effective than in regions like the U.S. and Europe. The average salaries for top developers in Chile are significantly lower than their U.S. counterparts for various programming languages and platforms. For example, a Python developer in the U.S. might earn between $175,000 – $195,000, while in Chile, the range is $68,000 – $96,000. Similarly, for JavaScript, the U.S. range is $165,000 – $185,000 compared to Chile’s $63,000 – $90,000
Job Search Platforms: Popular platforms for job seekers in Chile include Computrabajo, Indeed, Chiletrabajos, Trabajando, and Empleospublicos.cl. These platforms are ranked by traffic and engagement, reflecting their popularity and effectiveness in connecting job seekers with potential employers.
Talent Acquisition: Companies like GoGloby.io play a crucial role in sourcing talent in Chile. They focus on aligning the recruitment process with the specific skills and characteristics needed for team members. Such companies often provide additional support and services like customer service managers and cloud-based platforms for better recruitment management
Interview Behavior:
Probation Period: The probation period is 90 days.
Working Culture in Chile
Shared Cultural Similarities: Latin America, including Chile, shares cultural similarities with North America and Europe, which is conducive to collaboration. For instance, there is a shared emphasis on professional work ethics, respect for deadlines, and a focus on high-quality outcomes. Additionally, Latin American professionals often display a strong entrepreneurial spirit, adaptability, and a proactive approach, aligning well with the dynamic nature of the tech industry.
Working Culture in Chile: The business culture in Chile is formal and conservative. Appearance, status, and respect play crucial roles. Business structures are hierarchical, with decisions typically made at the top levels. It’s common for meetings to begin with top-level executives.
Cultural Compatibility: Chileans prioritize building long-lasting, trustworthy personal relationships in business. Meetings often start with polite social talk, focusing on an associate’s personal life and family. Business is conducted between individuals rather than companies, and thus, concluding business can take time. Patience and investment in relationship-building are key.
Relationships: Building strong relationships is important in Chilean business culture. Having a ‘pituto’, a network or connection, can be beneficial for getting connected with others and sharing information.
Time & Punctuality: It’s important to be punctual for meetings. However, getting down to business might take time, and it’s common for work hours to be extended to accommodate this. Patience is advised when waiting for responses or discussing matters in person
Employment Termination in Chile
Termination process:
Employees can be terminated with just cause, for reasons such as dishonesty, negligence, fraud, or any other work-related offenses, and although the managerial staff can be dismissed at will, a severance package is mandated by law.
Notification Period Guidelines:
An employer must provide at least 30 days’ notice of an employee’s termination.
Severance pay:
Employees dismissed for business reasons (e.g., redundancy) are entitled to a severance package equivalent to a month’s wages, while employees guilty of violating their contract or other serious offenses won’t be entitled to severance pay.
Frequently Asked Questions
Regarding the quality of tech talent in Chile compared to the U.S., Chile is recognized for its significant technological growth, especially in the tech sector, earning the nickname “Chilecon Valley.” The country’s programmers are highly skilled and well-educated, with a strong presence in software development. Five Chilean universities are ranked in the top 30 in Latin America, and 95% of computer science graduates find employment within a year. Chilean developers excel in areas such as statistical programming, computer programming, data analysis, and mobile development. Moreover, their English proficiency is high, facilitating seamless collaboration with U.S. companies.
Chile’s employment models include Contract, Acts on Work at Home and Remote Work, a shortened workday, extended paternity leave, and gender equality initiatives
In Chile, tech talent typically use a mix of local and international payment methods: Bank Transfers, PayPal, Skrill, Western Union, Payoneer and also Cryptocurrencies.