The new global economic landscape: how remote work redefines cross-border hiring

A transformative economic shift

The global economy is undergoing a seismic transformation. Recent U.S. policies—from tariff increases to stricter trade regulations—are forcing businesses to rethink traditional operating models. In this climate of protectionism and supply chain volatility, remote work has evolved from a temporary solution to a strategic imperative. Companies that embrace borderless talent acquisition, particularly in regions like Latin America, are gaining a decisive competitive edge.

The U.S. trade policy reset and its global ripple effects

Reshaping the rules of global commerce

The Biden administration’s Worker-Centered Trade Policy and initiatives like the CHIPS and Science Act prioritize domestic production while imposing new barriers on international trade. Key impacts include:

• Higher tariffs on imports (e.g., steel, aluminum, and technology components)
• Stricter compliance requirements for cross-border transactions
• Incentives for nearshoring to “friendly” regions like Latin America

These changes make traditional offshoring to Asia more costly and complex, pushing businesses toward agile alternatives like remote hiring.

The remote work advantage in a protectionist era

Remote teams offer a workaround to trade barriers by:

• Avoiding import/export costs: Talent is “delivered” digitally, bypassing physical supply chains.
• Mitigating geopolitical risks: Diversifying talent pools across stable LATAM countries reduces dependency on single regions.
• Accelerating time-to-market: Hiring pre-vetted remote professionals takes weeks, not months.

Latin America: the uncontested hub for remote talent

Why LATAM outshines other regions

Top LATAM roles for remote hiring

• Software developers (Python, JavaScript, .NET)
• Customer support/Sales (Bilingual English-Spanish)
• Digital marketing specialists (SEO, paid ads)
• Finance & accounting (QuickBooks, CPAs)

Case in point: A Texas-based SaaS company reduced payroll costs by 40% by hiring Colombian developers through Roots’ EOR model while maintaining U.S. productivity standards.

Employer of record vs. independent contractors:
choosing the right model

• Software developers (Python, JavaScript, .NET)
• Customer support/Sales (Bilingual English-Spanish)
• Digital marketing specialists (SEO, paid ads)
• Finance & accounting (QuickBooks, CPAs)

Case in point: A Texas-based SaaS company reduced payroll costs by 40% by hiring Colombian developers through Roots’ EOR model while maintaining U.S. productivity standards.

Employer of Record (EOR) – the turnkey solution

Ideal for businesses that want:

• Full-time hires with long-term commitments
• Local compliance handled (taxes, benefits, labor laws)
• Seamless onboarding (Roots manages payroll, contracts, and HR)

Contractor engagement – flexibility first

Best for:

• Project-based work (e.g., 6-month design sprint)
• Testing new markets before full expansion
• Specialized skills (AI/ML engineers, niche consultants)
• Pro Tip: Roots’ platform lets you switch between EOR and contractor models as needs evolve.

Navigating legal and operational pitfalls

Common challenges in cross-border hiring and how Roots mitigates them:

• Misclassification risks: We ensure contractors meet local labor criteria to avoid penalties.
• Tax complexity: Automated payroll systems handle deductions for LATAM countries.
• IP protection: Built-in NDA and contract templates safeguard your assets.
  Why Partner with Roots?

Global hiring made simple

In an era of economic uncertainty, Roots provides the infrastructure to hire, pay, and retain top LATAM talent—without setting up local entities. Our EOR and contractor solutions include:

• 100% compliant employment contracts
• 2-week onboarding for new hires
• 24/7 support for HR and payroll queries

Speak with our global hiring experts today