Election year, uncertainty, population index below the poverty line 39%, insecurity, country risk 2,113 points, exchange rate gap, August inflation 10.8% and multinationals leaving the country are just some of the challenges that Argentina is going through . But, despite the complex scenario, there are companies that are committed to investing in Argentina. It seems like a lie? Maybe, but where some feel turbulence, others see opportunity.
Unlike other election years, 2023 has been a super dynamic year and everything indicates that it will continue like this until the end of the year.
If you ask me, I think it has to do with several things. Mainly, the world today is much more integrated than before 2020 when it comes to the world of work. The consequence has been the emigration of professionals of all ages, between 20 and 65 years old, who decided to try their luck on another continent. This has caused a great movement in the internal labor market, resulting in the job search market being very competitive. Even more so for those employers who need to have certain cutting-edge technological and leadership capabilities.
The lack of people to fill strategic roles is global and organizations go out of their way to find the best possible value proposition. When evaluating job proposals, the big “pass or no pass” of executives in Argentina are:
- In-person / hybridity: Obviously this is for those staff positions that allow employees to work from home. It is very difficult to attract candidates to join an organization if they are not offered a hybrid model. Period, and that simple. Today everyone has taken stock of their lives and the result is the following:
Candidates prioritize 2×3 and 3×2 style presence schemes. Everyone has proven that to create culture a certain degree of presence is needed. Without seeing each other in person it is very difficult to build trust, brainstorm, put together a strategic plan and build a real team. But, of course, there is no need to go to the office every day for that. Therefore, companies that require full presence (always, not just for a special project or situation) fall into the category of those that require “signing in,” becoming less attractive in the market.
This also negatively impacts the reputation of that organization, as it is seen as old, and lowers its employer brand in the market.
1. Salary adjustment policy for inflation: Nowadays, customs and customs are monthly adjustments or every two months at most. Most organizations adjust their prices at least once a month. Therefore, employees are not very happy if their compensation does not follow that same scheme.
2. Ensure that employee compensation is competitive: There are companies of the same nationality, with similar products, comparable billing, and similar culture. However, the salary schemes of both companies show large gaps. This is the easiest way to lose valuable people.
3. Salaries in hard currency: Along with presence, the big stars of the moment. Legally all organizations can pay in hard currency. If the company can get the dollars, it can pay in dollars. Whether you pay inside or outside Argentina is another issue because it already has to do with the reach that each collaborator has and whether or not they have a regional role. Obviously, you must pay taxes according to the law in all cases.
4. Additional benefits: Work from anywhere is a highly valued benefit, especially among young people. Especially for those who work in technology. This is a global trend where organizations enable employees to work from different cities and set a limit of days annually to do so.
So, in this war for talent, what can companies do to be more attractive? What can they do to make them aspirational companies to work for?
My recommendation is to put a lot of focus on the culture and employer brand. The first step is to develop an open, respectful, participatory culture and then define a value proposition as an employer by identifying what factors make your company that unique place to work.
Sandra Olive is Managing Partner at Backer & Partners, specialized in executive search for Senior Management and Culture and Leadership Consulting.
by Sandra Olive
