When you need to recruit and hire employees for your parent company, where do you turn? Maybe you post your listings on industry job boards, or you reach out to people on...
Read MoreWhen you need to recruit and hire employees for your parent company, where do you turn? Maybe you post your listings on industry job boards, or you reach out to people on LinkedIn. It may not be possible to use the same practices in El Salvador, so how do you hire El Salvador employees while taking care of so many other tasks?
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When you need to recruit and hire employees for your parent company, where do you turn? Maybe you post your listings on industry job boards, or you reach out to people on LinkedIn. It may not be possible to use the same practices in El Salvador, so how do you hire El Salvador employees while taking care of so many other tasks?
Globalization Partners understands the challenges of hiring during an expansion, and we can provide El Salvador hiring outsourcing services on your behalf. We’ll recruit individuals for your positions or hire people you’ve already hand-selected. If you hire through our global PEO, you can start working in a day or two, and employees can be productive from day one.
Steady economic growth in El Salvador has led to more job opportunities, especially in the capital of San Salvador. As more expat workers enter the country, you may find that some job applicants speak English. If you want to find expats, you can advertise jobs on LinkedIn, LatinTopJobs, and GoAbroad.com. The San Salvador newspaper Diario Latino is also a great place to advertise jobs for both residents and nonresidents. Keep in mind there will be additional requirements when hiring someone from a different country.
One of your biggest requirements as an employer is to meet the country’s employment compliance laws. Failing to follow the right recruiting regulations or discrimination laws after hiring could lead to fines, legal ramifications, and business delays.
For example, the law prohibits children under the age of 12 from entering the workforce. Minors 12 and older can work as long as it does not interfere with their schooling or harm their health.
Currently, the country’s Labor Code expressly forbids discrimination related to union membership. This law is different from those in other Latin American countries, which often prohibit discrimination against age, gender, race, religion, and a variety of other factors. As a company, it’s important to establish your own regulations to avoid discriminatory practices and staff your business in El Salvador with a diverse workforce. You can also highlight these efforts when hiring to show candidates your commitment to creating a safe and welcoming workplace.
The best way to hire employees in El Salvador is through an oral or written contract, though we recommend a strong written contract in Spanish. Every employment contract needs to include compensation, benefits, health insurance options, termination requirements, entitlement terms, workings hours, and more. Make sure your offer letters and contracts always include compensation and salary amounts in U.S. dollars.
El Salvador’s employment compliance laws depend on whether you hire foreign or local employees. You cannot hire more than 10% of your company as foreign employees, and those foreigners cannot receive more than 15% of total salaries paid to employees. Once you hire an employee, you have to register them in the Salvadoran Social Security Institute (ISSS) and the Pension Fund Association (AFP).
Keep in mind that laws and regulations also apply to working hours and overtime. El Salvador has a six-day workweek that totals 44 hours. Overtime should get paid at 100% of the employee’s base salary, and workers can create their own hours by working an extra hour on weekdays to take more time off on the weekend.
You can onboard employees using any type of process that works best for your company. We recommend reviewing the employment contract with new employees during their first week to ensure both parties agree to all the terms. Then, you should enroll all new employees in a training program based on their position.
You don’t have to set up a subsidiary in El Salvador before hiring employees. Globalization Partners offers a better way through El Salvador hiring outsourcing. We’ll hire your employees through our El Salvador PEO and ensure that they have a positive hiring experience and can start working productively from day one. Plus, we’ll make sure your company meets El Salvador’s employment compliance laws, taking the risk associated with compliance off your shoulders.
You don’t have to stay awake at night worried about your expansion. Globalization Partners is here to make your hiring experience and entire expansion easier. Reach out to us today to learn more about El Salvador hiring outsourcing and our global expansion solution.
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