If you need manpower for a short-term or limited-scale project, or simply wish to get to know the market prior to making a deeper commercial commitment, you should consider hiring staff through a professional employer organization (PEO) in Costa Rica. Because when you hire staff through a PEO firm in Costa Rica, they act as the official employer in the eyes of local authorities, meeting all statutory responsibilities and managing their payroll, while you retain full control over their schedules and responsibilities.
Many investors choose hiring via a PEO as a stop-gap to be able to get to work right away while they register a company in Costa Rica. Note that a PEO can also be known as an employer of record (EOR).
Costa Rica is well-known for being one of the most stable and prosperous countries in Latin America, boasting some of the lowest violent crime statistics in the region, as well as one of the highest levels of gross national income (GNI), which stood at $11,700 per capita in 2019 (all figures in USD).
That GNI was reached after close to 40 years of near-continuous growth, with gross domestic product (GDP) only seeing an annual reduction during one year between 1981 and 2019, to reach $61.8 billion at the end of that period.
Costa Rica’s strong growth, political stability, and low crime make the country a popular destination for expats, tourists, and foreign investors alike, with the country registering more than $2.5 billion of foreign direct investment (FDI) in 2019.
The country boasts a growing tech scene, a well-established professional services sector, and highly-developed tourism and agriculture sectors, as well as a strong manufacturing base producing key exports such as pharmaceuticals, electrical machinery, and medical equipment.
If you are interested in doing business in one of Latin America’s most stable and prosperous countries, read on to understand how hiring via a professional employer organization in Costa Rica could be your ideal choice. Or go ahead and contact us now to discuss your business options.
Why hire via a professional employer organization?
By hiring via a PEO in Costa Rica you will hand over responsibility for the management of the salaries and benefits of local workers to the PEO firm, while retaining full control over what those staff are doing. As such, hiring via a professional employer organization represents a way of entering the market without having to go through company formation or any other kind of entity set-up.
This is particularly attractive if you are planning a short-term or limited-scale operation in the country and would rather avoid having to form and soon after liquidate a company. It is also a good option if you either want to get to know the market better before starting a business, or if you simply wish to get operations moving quickly.
Because a professional employer organization in Costa Rica will have an established recruitment network and a good knowledge of the local job market, meaning you can have workers within a couple of weeks, or even just a few days, of signing the service agreement with the PEO firm, depending on the profiles you are seeking.
Furthermore, when you hire via a PEO in Costa Rica, you benefit from the guarantee of being in compliance with all local regulations and norms, while the PEO firm will be able to provide ongoing advice on regulatory updates or legislative changes that may affect your interests.
While hiring via a PEO in Costa Rica will obviously come with a cost per employee hired, that will usually be significantly less expensive than going through the company formation process, while offering you the opportunity to enter and exit the market rapidly.
The responsibilities that a professional employer organization in Costa Rica will fulfill include:
- Drafting and executing employment contracts for hired employees
- Management of the whole hiring process, including resume analysis, interviewing candidates, and managing all related documentation
- Calculating and paying salaries
- Guaranteeing all statutory benefits and leave
Advantages of hiring via a PEO in Costa Rica
There are numerous advantages involved in hiring via a professional employer organization in Costa Rica, including:
Legal representation: Your PEO firm in Costa Rica will act as your legal representative in all matters related to the workers it hires on your behalf. Their team of corporate and employment lawyers will respond to any issues that may arise, representing you before local authorities where necessary.
Compliance: As part of the services agreement you sign with a PEO in Costa Rica, will be the guarantee of compliance with all local legislation and norms, meaning that you can rest assured that your company will remain in good standing with local authorities and will avoid fines or penalties.
Recruitment: Your professional employer organization in Costa Rica will not only have a well-established recruitment network capable of finding suitable staff rapidly, but it’s recruiters will also have a sound knowledge of the best local educational institutes and courses, helping them to effectively vet the prospective candidates they present you with.
Rapid entry/exit: When you hire via a PEO in Costa Rica, you benefit from the fact that you can get to work in the market in the time it takes to find the right people — which could be just days in the case of an entry-level position — as well as being able to exit in just the time it takes for workers to serve a statutory notice period. This represents an extremely nimble form of market entry.
Biz Latin Hub offers hiring & PEO services in Costa Rica
At Biz Latin Hub, our team of multilingual hiring & PEO experts in Costa Rica has extensive experience in finding, hiring, and managing the payroll of suitable staff for foreign investors. With our complete portfolio of back-office solutions, including legal, accounting, commercial representation, and company formation services, we can be your single point contact to oversee your market entry and ongoing operations in Costa Rica, or any of the other 17 countries around Latin America and the Caribbean where we are present.
Reach out to us now for a consultation or free quote.
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