Argentina: Hiring in an Unstable Economy

Argentina is one of the most difficult countries in which to do business right now, and yet our clients find great talent in the Southern cone. The economy remains extremely unstable, with a reported inflation rate of about 42 percent in 2014. The “real” inflation reported by people in-country is much higher; prices are listed on chalkboards, and prices for goods posted in the morning are likely to change by afternoon.

Many companies are constantly battling with the influence of inflation on the minimum wage and labor unions are pushing hard for employee rights, even while employees ask to be paid under the table in US dollars. An employee asking to be paid gross as a contractor is an illegal but understandable request, which may work well for everyone until the employee is terminated . . . at which point the employee may report having been illegally employed by a foreign employer.

With such strict labor laws, noncompliance, once discovered, is extremely expensive to fix.

When a company intends to hire in a country with an economy as unstable as Argentina, our Global Employee Leasing Platform is an excellent solution. Rather than investing in legal infrastructure, bank accounts, and capital that can literally disappear overnight, we put your employees on our already-established local entity, and thus lift the risk of foreign direct investment from your shoulders to ours. No one can stop inflation, but we can help you hire and retain great talent in Argentina with minimal risk and investment.

Contact us if you would like to discuss hiring in Argentina.