Your Trusted Partner for Recruitment in Guatemala

To better fulfill your recruitment needs, we at Remote People are here to help you find top talent in Guatemala more effectively than recruiting on your own. Our team understands the local language, customs, and the intricacies of the Guatemalan 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 Guatemala recruitment landscape with confidence and ease.

Key Takeaways

  1. Guatemala has one of Latin America’s largest economies.
  2. Guatemala’s proximity to North America and large English-speaking population makes hiring and doing business in the country efficient and straightforward.
  3. The government is committed to strengthening public infrastructure and increasing public sector efficiency.
  4. Recruitment agencies can ensure that companies hire top-performing talent in Guatemala.

Situated south of Mexico, the Central American country Guatemala boasts one of Latin America’s strongest economies. Between the years 2014 and 2023, Guatemala showed steady and stable economic growth, averaging above both Latin America and the Caribbean, with a 3.2% increase in GDP.

Despite damages to public infrastructure following hurricanes Eta and Iota in 2020, Guatemala’s economy has remained resilient, with a GDP growth of 4.0% projected for 2024. Guatemala is home to an abundance of natural resources, many of which have provided exciting investment and employment opportunities for foreign and national businesses.

The country is rich in uranium, petroleum, gold, silver, copper, and cobalt and is also home to volcanoes and ancient Mayan sites, which have generated multiple opportunities in the tourism sector. Guatemala benefits from its close proximity to the U.S., which has a strong English-speaking population, easing business processes and facilitating employment for foreign investors. 

Companies looking to optimize their human capital and take advantage of Guatemala’s diverse and opportunistic economy may be greatly advantaged by enlisting the help of a recruitment agency.

Overview of Guatemala Recruitment Industry

In January 2024, President Bernardo Arévelo took office after campaigning to improve and facilitate social and economic investments, reduce corruption, and increase the public sector’s efficiency. The president’s mission statements reflect his recognition of current structural inefficiencies and mark a hopeful shift towards formal sector employment.

A study conducted by the ILO (International Labor Organization) in 2021 showed that the informal economy still accounted for the majority of employment in Guatemala, employing 65.3% of Guatemala’s labor force. The largest sector for employment in Guatemala is currently the agriculture, forestry, and fishing industry (30.4%), followed by the vehicle and repairs industry (19.4%)

Although a strong informal sector has historically driven Guatemala’s economic growth, particularly through the agriculture industry, increased job creation in the private and public sectors is crucial to diversifying and expanding Guatemala’s economy.

Recent developments in infrastructure and technology have seen Guatemala begin to establish itself as an attractive hub for tech start-tups. Guatemala’s growing technology sector coupled with increases in connectivity should facilitate better job creation in the private sector.

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What Legal Considerations Apply when Recruiting in Guatemala?

Employers hiring talent in Guatemala benefit from the country’s skilled and cost-effective labor force. When operating in Guatemala, businesses will have access to highly qualified talent who are adept at leveraging the latest technology to drive business success.

However, in Guatemala, talent can be hired legally at a much lower cost than in the U.S. or other European countries. According to the Anker Research Institute, endorsed by the Global Living Wage Coalition, the monthly living wage (2022) in Guatemala is GTQ 4646 (approx. $603), significantly lower than the U.S. minimum wage of $1256.7 per month. Another key advantage of hiring in Guatemala is the country’s proximity to North America.

Guatemala’s shared border with Mexico to the North helps facilitate smooth integration for businesses looking to expand their operations in or near the U.S. Increased connectivity thanks to the introduction of two new air services between the U.S and Guatemala is also expected to positively impact the economy as a result of increased trade and investment. Reduced airfares and easier routes of entry have additionally helped improve migration to Guatemala, thus increasing the country’s pool of migrant workers.

Businesses in Guatemala additionally benefit from a range of tax incentives and free trade zones. These government backed initiatives mean that businesses operating in certain areas may be eligible for tax deductions and exemptions for a set period, typically ranging from five to ten years.

As a result, not only can businesses hire talent at a reduced cost, but equally optimize the efficiency and cost-effectiveness of their operations. Labor relations and working conditions in Guatemala are governed by the Labor Code (Código de Trabajo).

Working Hours

The standard working week in Guatemala is 44 hours, typically divided into six days of eight hours per day. Workers are not permitted to work more than 12 hours per day, including overtime.

Work beyond the employee’s scheduled hours will be considered overtime and must be compensated at a rate of 1.5 times the employee’s regular hourly wage for weekdays and two times the employee’s normal wage for work on holidays or Sundays.

Annual Leave

Employees in Guatemala are entitled to a minimum of 15 days of annual leave, provided they have completed a year of service. Employees who have worked for more than a year will generally be entitled to compensation according to their length of service. The amount of sick leave an employee is entitled to will also depend on their length of service.

Employees who have worked for a minimum of nine months are typically entitled to sick leave paid at half the rate of their regular wage. Pregnant employees are entitled to three months of fully paid maternity leave, and fathers may take two paid days of paternity leave. In the event of complications, maternity leave may be extended.

Guatemalan Social Security Institute

The Guatemalan Social Security Institute (IGSS) is responsible for providing financial protection for workers in the event of sickness, retirement and other social issues. Employers are required to contribute 9.67% of the employee’s salary to the IGSS whilst employees are only required to contribute 3.0%.

Mandatory social security contributions help fund two main national welfare schemes: health insurance and the Pension Fund.

Taxation System

Employers hiring in Guatemala will also need to be aware of taxation laws. As of 2024, Guatemala levies a progressive taxation system ranging from 5.0% to 7.0% for personal income.

Corporate income tax is also levied at a standard rate of 25%, though some businesses involved in exports may be eligible for a reduced rate of 5.0% to 10%, depending on their income. The standard VAT rate in Guatemala is 12%.

What are the Benefits of Recruiting in Guatemala?

Guatemala offers several strategic advantages for companies seeking to expand their talent pools. One notable benefit is its location and time zone, which closely align with those of North America. This proximity allows for easier collaboration, real-time communication, and more efficient project management when working with U.S.-based teams.

Additionally, the country’s strong bilingual culture, with many professionals fluent in both Spanish and English, supports seamless integration into multinational business operations. The country’s growing talent pool, particularly in fields like customer support, IT, and engineering, makes recruiting in Guatemala an attractive option for companies looking to diversify their workforce.

Competitive labor costs and a stable business environment further increase its appeal, helping organizations reduce operational expenses without compromising on quality. Moreover, Guatemala’s cultural familiarity and professionalism ensure that new hires can quickly adapt and excel within an international corporate environment.

Finally, government and private-sector initiatives supporting education, training, and innovation have contributed to a skilled workforce ready to meet the demands of the global market. As a result, organizations that choose to recruit in Guatemala can benefit from a well-prepared, adaptable, and cost-effective labor force, positioning them for long-term success.

What are the Downsides of Recruiting in Guatemala?

Whilst Guatemala has shown impressive economic resilience over the last few years, the country’s vulnerability to external shocks such as hurricanes and other natural disasters still remain challenges for businesses in the region.

The 2020 hurricanes Eta and Iota caused infrastructure-related losses equivalent to 0.56% of the country’s GDP and additional agricultural losses of approximately 0.20%.

Although developments are in progress to strengthen the country’s infrastructure and food security, recruiters should be aware of these challenges when hiring talent in Guatemala.

How to Choose a Recruitment Agency in Guatemala

When choosing a recruitment agency in Guatemala, companies will need to prioritize the agency’s expertise and experience in helping companies connect with skilled professionals. The agency will need to have a strong understanding of Guatemala’s labor force and use this knowledge to inform its recruitment strategies.

The agency should clearly understand the requirements and nuances of different industry roles to ensure that shortlisted candidates and their specific workforce needs are suitable for the company. It is crucial that recruitment agencies have the legal expertise needed to help companies navigate Guatemala’s legal environment. The agency will need to be well-versed in hiring laws and customs, ensuring that the company’s recruitment practices are compliant and consistent with national standards.

The agency will also need to have a good grasp of national labor law to ensure that all social security contributions are accounted for and considered when hiring a new employee. Companies should choose a provider with a strong track record for relevant and strategic employee placements.

Employers may wish to review the agency’s client testimonials to assess the standard of their processes and ensure that they are the right fit for the company’s hiring needs. The recruitment agency will need to be professional and efficient from start to finish, ensuring compliance from the sourcing and vetting of candidates all the way through to signing the employment contract.

Recruit Top Talent Across the Americas with Our Recruitment Expertise

Navigating the complexities of hiring and workforce management across different countries can be challenging. Partnering with a reliable recruitment 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 Guatemala? Remote People’s recruitment services offer tailored solutions to meet your hiring needs. Contact us today to discuss how we can help your business grow in Guatemala.