When a founder asks what nearshore staffing costs, the answers they get are hard to compare. One provider quotes a percentage. Another quotes a monthly rate. A third quotes a flat fee. Each one is pricing a different part of the hire.

Every LatAm hire has three costs: the person's salary, the fee you pay to find them, and the cost of employing them legally. This guide explains how the three main pricing models handle each part, and what to ask before you sign.

15 to 25%Typical contingency recruiting fee, as a share of first-year salary
$599+Published monthly employer of record fee per employee at the largest providers
$0Change in a flat fee when the salary goes up

Sources: AIHR, recruitment fees glossary. Deel and Remote published pricing, 2026.

The three costs in every hire

Salary is what the person earns. It is the largest number and the one most founders already have in mind. For a sense of scale, the US Bureau of Labor Statistics put the median US software developer wage at $135,980 in May 2025. We break down LatAm salary levels in what it actually costs to hire a senior engineer in LatAm.

The provider's fee is what you pay a recruiter or staffing firm. This is where pricing models differ most. It can be a percentage of salary, a monthly markup, or a flat amount.

The employment cost is what it takes to pay the person legally every month. That usually means a contractor agreement or an employer of record (EOR). Some staffing firms include this in their monthly rate. Recruiters who only place the hire do not.

Percentage-of-salary fees

This is the most common model in recruiting. On a contingency search, you pay nothing until you hire, then pay a share of the person's first-year salary. AIHR puts the typical range at 15 to 25 percent for contingency searches and 25 to 40 percent for retained searches.

The fee rises with the salary. Here is what that looks like at three salary levels:

Annual salaryFee at 15%Fee at 20%Fee at 25%
$48,000$7,200$9,600$12,000
$70,000$10,500$14,000$17,500
$135,980 (US median developer)$20,397$27,196$33,995

Fee amounts calculated from the salary shown. US salary from the Bureau of Labor Statistics, May 2025.

Hiring in LatAm already lowers the fee in dollar terms, because the salary is lower. The structure stays the same, though. A recruiter paid on percentage earns more when the offer goes up.

A candidate asks for $70,000 instead of the $60,000 you planned. At a 20 percent fee, your recruiting cost goes from $12,000 to $14,000 at the same moment your salary cost goes up by $10,000.

The recruiter is the person advising you on how to respond. Under a percentage model, saying yes also raises their fee.

Flat-fee recruiting

A flat fee is a fixed price per hire. It does not change with the salary you agree on. You know the recruiting cost before the search starts, and it stays the same through the offer.

The main benefit is the incentive. A recruiter on a flat fee has no financial reason to push compensation higher, so their advice on the offer is about what will get the person to accept and stay. It also makes budgeting simpler when you are planning several hires.

Flat fees vary by provider and by role. Ask what the fee includes, since some flat-fee firms only send resumes while others run the full search, screening, and offer process. Sur's model is explained on our pricing page.

Monthly staffing rates

In a staffing model, the provider employs the person and bills you every month. The bill covers the salary plus the provider's fee. Some providers show the two numbers separately. Others combine them into one rate, so you do not see how much of each payment goes to the person.

The upside is simplicity. You do not deal with contracts, payroll, or local compliance. The downside is that the fee never ends. A one-time placement fee is paid once. A monthly fee is paid every month the person works for you, and over two or three years it usually adds up to more.

Before you choose this model, ask what the fee is in dollars per month, if it rises when the salary does, and what it costs to move the person onto your own payroll later.

The cost of employing someone

If you hire through a recruiter, you still need a way to pay the person. There are two common options.

Contractor agreements are the simplest. The person invoices you and you pay them. Contractor management platforms charge a small monthly fee, usually $29 to $49 per contractor per month at the largest providers.

An employer of record becomes the legal employer in the person's country and handles payroll, taxes, and benefits. The largest providers publish rates of $599 to $699 per employee per month, or about $7,200 to $8,400 a year. That fee does not include the employer taxes and contributions the country requires, which are added on top.

The three models side by side

FactorPercentage feeFlat feeMonthly staffing
When you payOnce, at hireOnce, at hireEvery month
If salary goes upFee goes upFee stays the sameDepends on the contract
Who employs the personYou, or your EORYou, or your EORThe provider
Cost over two yearsFee plus employment costFee plus employment costFee repeats every month

What to ask any provider

When a percentage fee or monthly rate makes sense

A retained search on a percentage fee can make sense for a senior leadership hire where you want a dedicated search firm and the salary is the main point of negotiation.

Monthly staffing makes sense when you want no involvement in payroll or compliance, or when you expect the role to last a short time. In both cases, the convenience is real. Compare the total over the period you expect to keep the person, not only the first invoice.

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