Your Trusted Partner for Recruitment in Costa Rica

To better fulfill your recruitment needs, we at Remote People are here to help you find top talent in Costa Rica more effectively than recruiting on your own. Our team understands the local language, customs, and the intricacies of the Costa Rican talent market, giving you a significant advantage in securing the right candidates.

We know where to advertise your job openings to ensure maximum exposure and attract the best talent. Additionally, we assist in designing competitive, locally-appropriate compensation packages that not only appeal to top candidates but also help you optimize costs. 

Get in touch with us to navigate Costa Rica’s recruitment landscape with confidence and ease.

Key Takeaways

  1. Costa Rica has one of Latin America’s strongest economies.
  2. The government’s prioritization of education has cultivated a highly qualified and skilled national labor force.
  3. Companies may use recruitment agencies that specialize in temporary, permanent, executive, or industry-specific employment.
  4. When choosing an agency, companies should prioritize the agency’s experience and expertise in recruiting candidates for specific industry roles.

Located in Central America with the Pacific Ocean to the West and Caribbean Sea to the East, Costa Rica is home to one of Latin America’s most skilled and educated workforces. The country’s proximity to the U.S and its large expat population makes doing business and hiring in Costa Rica advantageous for many English-speaking companies.

Prior to the Covid-19 pandemic, Costa Rica enjoyed economic and political stability fueled by government investments in human capital and a thriving tourism sector. Though the effects of the pandemic still linger with regards to youth unemployment and inflation, developments in eco-tourism in addition to the expansion of forest coverage and the promotion of FDI have helped fuel a strong economic recovery. 

As the government pursues new free trade agreements with local and global allies and incentivizes businesses through free trade zones, Costa Rica’s economy is poised for strong and impressively fast growth. The country’s history of attracting high tech-level investments makes the IT sector a prominent space for upcoming local and foreign businesses whilst its national beaches and parks offer huge investment potential for companies in the eco-tourism sector.

Overview of Costa Rica Recruitment Industry

Costa Rica has long prioritized the education of its youth and in 1949 became the first country in the world to abolish its military, redirecting the funds towards education, healthcare and environmental sustainability. The country prides itself in providing universal free public education, affording employers access to a skilled and highly-qualified workforce. 

The country’s focus on education has led to a high literacy rate of 98% and a competitive paid employment rate of 68% for men in the labor force and 41% for women. Individuals who have completed upper secondary education are likely to enter higher paid jobs where the employment rate is currently 43%. 

In Costa-Rica, girls and women lead in educational attainment, with 34% of women receiving tertiary education compared to 30% of men. However, the same pattern is not reflected in the labor market where 84% of men who have received below upper secondary educational level are employed compared to 43% of women with the same attainment level.

The OECD and WorldBank have stressed the importance of facilitating employment opportunities for women as key to strengthening the country’s economic growth and global competitiveness. Moreover, the country’s large investment in human capital means that education is a prerequisite for employment, thus limiting opportunities for less skilled/non-skilled workers.

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What are the Benefits of Recruiting in Costa Rica?

Costa Rica’s large American expat population means that a big percentage of the country are proficient in English, making connecting companies with highly-qualified talent a much easier endeavor for recruiters. As Costa Rica’s workforce is particularly competitive, migrant workers with high qualifications tend to find work easily with the large majority of these opportunities coming from urbanized areas such as the capital, San José.

Since 1997, when the first microchip manufacturing plant was established in the country, Costa Rica has been an important base for tech firms, with corporations such as Microsoft, Amazon, and Dell all establishing firms in the country. Significant infrastructure developments and foreign investment in IT have also enhanced the growth of the IT sector.  In order to sustain their operations, tech firms are in demand of highly skilled and experienced professionals. Their demands have afforded both recruiters and employees a steady flow of employment opportunities.

The nature of Costa Rica’s education system also gives employers in the nation an advantage. Costa Rica uses a dual education system that combines classroom teaching with practical training to afford students the knowledge and skills they need to be successful in the labor market. This training also helps employers minimize skills gaps or skills mismatches in their workforce, benefiting both the employer and employee.

What Legal Considerations Apply when Recruiting in Costa Rica?

The Labor Code governs and regulates employer obligations, labor relations, and working conditions.

Contracts

Employment contracts in Costa Rica must be written in Spanish or English and provided within a month of the employee’s employment commencing. Verbal agreements are acceptable in the case of temporary agricultural work but written contracts are mandatory for all other forms of formal employment. The employment contract should clearly state: the requirements of the job, start-date, workplace address, salary, work hours, benefits, termination provisions and probation conditions.

The most common forms of employment contract in Costa Rica include indefinite and fixed-term contracts. The former contract refers to an arrangement with no determined end-date, providing the employee with continuous employment. The latter refers to a contract with a set-end date. Fixed-term contracts may only be provided for a duration of one year, though if technical training is required, the duration of the contract may be extended to five years.

Working Hours & Overtime

Under Section 136 of the Labor Code, employees may only work a maximum of eight hours per day and 48 hours per week. If an employee is working a night shift, the maximum amount of hours they are permitted to work is reduced to seven. Employees who work for more than eight hours are entitled to compensation, which must be awarded at a rate of at least 1.5 times the employee’s regular wage.

Paid time off (PTO)

Employees in Costa Rica are entitled to two weeks of paid vacation leave for every fifty weeks worked or one day of vacation leave for every month worked. Employees may also take unlimited sick leave, provided a medical note that includes the doctor’s recommendation for the length of leave is submitted to the Caja Costarricense de Seguro Social (CCSS). Sick leave is paid at a rate of 50% by the employer for the first three days of leave and 60% by the CCSS from the fourth day.

Employees who suffer a work-related injury or contract an occupational disease are entitled to compensation from the CCSS.

Parental Leave

Expectant mothers are entitled to eight months of maternity leave where four of the months are paid by the employer at a rate of 50% and the remaining four months are paid by the CCSS. An employee’s contract may not be terminated during this time.

All employees must be registered with the CCSS by their employer. The CCSS provides healthcare, pension funds, and sick leave for employees in Costa Rica and is supported by the Ministry of Health. Employers are required to contribute 34.5% of the employee’s salary to the CCSS and employees must make a contribution of 9.7%.

Downsides of Recruiting in Costa Rica

Though Costa Rica enjoys a relatively high employment rate, the majority of job opportunities available are targeted toward skilled workers. This means that more and more less educated workers are becoming reliant on social security. In addition to deteriorating opportunities for the less-educated, female labor force participation in Costa Rica is also very low, leading to inequity and a lack of diversity in the workplace.

In order to mitigate these concerns, Costa Rica will need to incentivise employers to provide specialized training programs while continuing to promote female employment opportunities in alignment with global trends.

How to Choose a Recruitment Agency in Costa Rica

Companies must consider both their long-term goals and budget requirements when choosing a recruitment agency in Costa Rica. The agency should provide a clear, effective and affordable service that is informed by and structured around the company’s specific workforce needs. Agencies should collaborate with companies to understand the company’s hiring needs and use this knowledge to inform efficient and cost-effective hiring strategies.

It is important that companies choose a recruitment agency with the relevant industry expertise and experience. Recruitment agencies tend to differ in the services they offer, with some providing a specialized service that focuses on one particular industry and others affording companies more generalized staffing solutions. Companies must ensure that the provider they choose has a strong track record of connecting companies with skilled professionals who can support their long-term goals.

It is imperative that the recruitment agency has the legal expertise needed to ensure that companies remain compliant with Costa Rica’s labor and taxation laws. As compliance failures can threaten both a company’s financial security and reputation, it is crucial that the provider is experienced in helping companies navigate foreign employment laws.

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Navigating the complexities of hiring and workforce management across different countries can be challenging. Partnering with a top international hiring agency ensures you stay compliant with local labor laws, streamline the hiring process, and secure top talent. Learn how Remote People can help you recruit in the following countries:

Recruitment Agencies in the Americas
Antigua and Barbuda Argentina Bahamas
Barbados Belize Bolivia
Brazil Canada Chile
Colombia Costa Rica Cuba
Dominica Dominican Republic Ecuador
El Salvador Guatemala Guyana
Haiti Honduras Jamaica
Mexico Montserrat Paraguay
Peru Puerto Rico Suriname
United States United States Virgin Islands Uruguay

Ready to expand your team in Costa Rica? Remote People’s recruitment services offer efficient and customized solutions for your hiring needs.

Contact us today to discuss how we can support your business in Costa Rica.