Introduction
Building nearshore teams in LATAM is one of the smartest moves for companies in the U.S. and Canada. You get great talent, similar time zones, and strong cultural alignment. However, many teams fail because companies rush the process or overlook key steps.
To help you build a nearshore team that actually performs, here are the most common mistakes – and how to avoid them.
1. Hiring Without a Clear Role Blueprint
Many companies start hiring before they know exactly what they want. As a result, the new team member receives unclear tasks and shifting expectations.
How to Avoid This Mistake
- Write a detailed role description.
- Define KPIs and daily responsibilities.
- Align internal teams before interviews.
Clear expectations lead to faster ramp-up and higher performance.
2. Treating LATAM Talent Like External Contractors
One of the biggest errors when creating nearshore teams in LATAM is treating talent like temporary vendors rather than real team members.
How to Avoid This Mistake
- Give nearshore employees full access to communication channels.
- Include them in key meetings.
- Share context, goals, and internal updates.
When people feel included, their output improves.
3. Ignoring Cultural and Communication Differences
Even though LATAM talent often speaks excellent English, communication style still varies. Ignoring these differences creates friction.
How to Avoid This Mistake
- Set communication standards early.
- Encourage open feedback.
- Train management on cultural nuances.
Better communication means better results.
4. Skipping Proper Onboarding
Some companies bring nearshore hires into the team without a proper plan. This leads to confusion, delays, and frustration.
How to Avoid This Mistake
- Use a 30-60-90 day onboarding plan.
- Assign a mentor or team buddy.
- Share SOPs, tools, and cultural expectations.
Good onboarding increases retention and productivity.
5. Overlooking Legal, Payroll, and Compliance Rules
Every country in LATAM has its own labor laws. Skipping compliance to “save time” can cause legal issues.
How to Avoid This Mistake
- Use a provider who manages payroll, contracts, and compliance such as Arvenda.
- Understand local regulations.
- Offer competitive and compliant benefits.
Compliance protects both the company and the employee.
6. Offering Salary Only and No Benefits
Many companies make this mistake when building nearshore teams in LATAM. Benefits matter just as much as compensation.
How to Avoid This Mistake
- Provide healthcare, paid leave, and wellness benefits.
- Review benefits regularly to stay competitive.
- Show long-term commitment to your team.
Good benefits attract better talent.
7. Not Providing Career Growth Opportunities
Without growth, even the best talent eventually leaves. This is a common issue in nearshore structures where roles feel “static.”
How to Avoid This Mistake
- Create a clear growth path.
- Offer continued education or certifications.
- Recognize achievements openly.
Growth boosts loyalty and performance.
Conclusion
Building nearshore teams in LATAM is one of the most effective ways to expand your operations. When done correctly, you gain strong talent, smoother workflows, and long-term success. By avoiding these common mistakes and following the strategies above, you set your team up to thrive.
If you want support with recruitment, onboarding, payroll, compliance, and benefits, Arvenda can help you build a nearshore team that operates like a true extension of your company.
