How to Choose the Best Salary Benchmarking Approach in LATAM

For recruiters and startup founders working in Latin America's growing tech market, salary benchmarking plays a crucial role in hiring success. Many still count on traditional headhunter recommendations when setting salaries, but this approach has its challenges. Meanwhile, DIY salary benchmarking tools with real-time, localized compensation data are offering new ways to make smarter hiring decisions.

🧐 Why Headhunter Salary Benchmarks May Miss the Mark

Headhunters contribute valuable insights from their candidate placement experience. However, their salary benchmarks often have limitations:

• Static and Limited Data: Headhunter insights typically rely on past placements or outdated market surveys, lacking the detail and real-time updates needed for LATAM's shifting tech labor markets.
• Potential Bias Toward Higher Salaries: Since their fees depend on placements, salary suggestions may lean toward the higher end to increase commissions, which can affect startups’ budgeting.
• Low Transparency: The methods behind offered salary figures often remain unclear, making it difficult for hiring teams to independently assess competitiveness or fairness.

While their expertise in market dynamics is valuable, depending exclusively on headhunter benchmarks can limit flexibility in tailoring competitive offers to regional nuances.

📊 Advantages of Real-Time DIY Salary Benchmarking Platforms

Platforms like Get on Board’s Insights Pro enable HR teams to make compensation decisions based directly on data without involving intermediaries. Key benefits include:

• Up-to-Date, Detailed Data: Access continuously refreshed salary information categorized by role, location, experience, and skills to reflect the true labor market across LATAM.
• Cost Savings: By avoiding external fees, startups can optimize salary budgets and allocate more resources toward growth or benefits.
• Transparency and Flexibility: DIY tools let hiring teams simulate different salary scenarios, benchmark against competitors, and customize offers based on unique talent profiles and company strategies.
• Wide Market Scope: Unlike headhunters who often focus on specific regions or senior roles, data platforms cover a broad range of job categories and multiple LATAM markets, supporting scalable hiring.

Using real-time data platforms empowers startups and recruiters to leave guesswork behind and align compensation packages with the actual market landscape.

Taking advantage of these insights allows teams to design competitive offers grounded in current market realities. For example, consulting the latest salary gap reports in LATAM’s tech jobs helps identify disparities and develop more equitable, attractive packages.

💡 Practical Tips for Using DIY Salary Benchmarking

• Combine Multiple Data Sources: Use platforms like Get on Board’s compensation tool along with internal data and employee feedback for a well-rounded perspective.
• Update Benchmarks Regularly: Tech markets evolve quickly; schedule quarterly reviews to keep salary offers relevant.
• Segment by Role and Location: Consider economic differences across LATAM cities and remote work options to fine-tune salary levels.
• Include Total Compensation: Look beyond salary to benefits, equity, and career growth opportunities when benchmarking offers.
• Test and Refine: Pilot your benchmarking approach with select roles, then adjust based on acceptance rates and employee retention.

Accurate, timely salary data is essential for Latin America’s tech ecosystem. Choosing a DIY approach with up-to-date tools helps you stay informed and craft competitive packages that attract and keep top talent while managing costs carefully.

Explore real salary data with Insights Pro; create offers that resonate without headhunter markups and equip yourself to compete effectively for talent.