11 articles Articles posted in HR & recruiting

Intro to recruiting in Brazil

Recruiting in Brazil is one of the biggest challenges awaiting future startups.  The job market is different in Brazil to the US and Europe.  Part-time is also much less common, partly due to cultural norms. Temporary jobs are much less common, partly due to the legal complexity of hiring these types of jobs. Hiring staff legally is also difficult for a foreign company and there is extremely complicated legislation around jobs which involve using the …

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How much do employees cost in Brazil

How much do employees cost in Brazil

Anyone will tell you that employee costs are extremely expensive in Brazil and they are easy to underestimate.   Despite the fact everyone knows this, the actual taxes and benefits are usually left for the accountant to deal with.  This is no good for an entrepreneur how needs to write a business plan. So, to make it easy for you to plan your costs, here is a simulation the costs of hiring someone CLT at a salary of …

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Is it legal to hire my entire staff as PJ in Brazil?

In terms of taxes and benefits, hiring PJ aka outsourcing is cheaper than hiring as an employee (CLT). However, my Brazilian accountant once told me: its only illegal if you get caught. I did fire the accountant but its a sad truth that many startups do this when there aren’t supposed to and pass under the radar. From hours of conversations with lawyers, I have gathered that it is illegal in Brazil to: (i) outsource the …

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How stock options work in Brazil

Stock options are less commonly used in Brazil than the US for two reason.  Firstly, there are few local examples of people who got rich through stock options to educate the potential value of an option.  Secondly, having a stake in a company implies risks for the entrepreneur. As long as the entrepreneur has stock, they are personally liable for tax and labour disputes. The most common stock options in Brazil are reverse stock options. In …

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How to recruit a co-founder in Brazil

Finding a co-founder in Brazil is extremely difficult to do and extremely important to get right.  I lost count of the horror stories I have heard about choosing the wrong business partner.  Here are the top tips regarding co-founders: 1) Get involved in the local startup scene.  Go to startup meetup and tech events.  There you will meet many people who can help you, either by introducing you to potential partners or as references for …

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How to recruit software developers in Brazil

Finding software developers and programmers in Brazil is not easy but its clearly a critical skill to master.  The availability of good coders will depend on where you are, what programming language you are developing in, and how much you have to spend. The best schools for computer scientist are in Campinas, Belo Horizonte and São Paulo.  This explains why so many startups decide to set up camp there and I recommend taking this into consideration …

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How to recruit customer service and sales positions

The job market is different in Brazil to the US and Europe. Part-time work and temporary position are much less common, partly due to cultural norms and partly due to the legal complexity of hiring these types of jobs. Hiring staff legally is also difficult for a foreign company and there is extremely complicated legislation around jobs like telesales and customer service. Here is a beginner’s guide to recruiting for telesales and customer service in Brazil. …

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Internships at startups in Brazil

Internships can be an ideal way to either find out more about living and working in Brazil, or staffing some areas of your startups for reasonably cheap.  There are various programs at top US universities that setup internships between students and Brazilian companies, and many of these programs would love to send students to work at startups. At my first startup, we took interns from Harvard (David Rockefeller Centre for Latin American Studies), Princeton (Princeton …

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Top 6 things to look for in a resume in Brazil

I spend about 7 seconds looking at a resume.  Not sure if this is above or below average.  Since resumes are usually painfully low quality, I I apply a quick mental filter when reviewing a resume.  Here are the 6 things I look for: 1) Did someone I know and trust recommend this candidate? This limits how much I trust the candidate and their CV. 2) Did they go to a top university? USP, UNICAMP, …

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Why people ask their employers to fire them in Brazil

When I arrived in Brazil, I was surprised at how common this practice was.  So I found out why it happens. If you are working CLT (work contract) in Brazil, your company is obliged to pay 8% of your salary into a severance fund called FGTS. As an employee, you can only access this fund if you are fired (or terminally ill or buying a property). If an employee quits they can’t access this fund …

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