We continue to delve into the peculiarities of the main labour markets with our specialists, through a new format: the GB Interviews.
This time it is Brazil’s turn, a country where the automotive, agriculture and service sectors are the basis of the economy. Luiz Gustavo Aranha, our Country Manager in Brazil, reveals everything you need to know before looking for talent in this country.
Luiz, we would like to start this interview dedicated to Brazil by asking you: what are the main difficulties in recruiting in your country?
I would say that the most difficult thing in my country is finding qualified candidates with good experience and demonstrable professional achievements.
How would you describe the Brazilian labour market? Is it a highly skilled labour market?
The Brazilian labour market is a market receptive to change. Nowadays, these changes are becoming more and more frequent, and many professionals find themselves working on projects without actually being a part of the company.
Regarding your second question, not the entire the Brazilian market is highly qualified. Sao Paulo, for example, has better candidates than other states.
What would you say are the most developed sectors in Brazil?
I would say that agriculture, automotive, services and retail are the sectors on which the economy is based in my country.
And what are the most in-demand professions?
Nowadays, technology and financial professions are the most sought-after in Brazil.
What are the peculiarities of the labour market in Brazil?
The salary bands in Brazil, as in all countries, depending on the type of work; the training and experience of the person can also be higher or lower. In addition, every employee is entitled to an annual bonus which is paid twice; in November and December.
Working hours in Brazil are 8 hours a day and 40 to 44 hours a week, depending on whether the worker works 5 or 6 days a week. After 6 hours of work, an employee is allowed a break of at least one hour. Every other day, workers must also have 11 consecutive hours off work, and at least one day off per week.
The most common employee benefits are health insurance, life insurance or a savings fund, although it depends on the company. Apart from fluency in Portuguese, knowledge of different languages is a definite plus.
How do you retain talent in the Brazilian market?
Talent is retained through challenging projects with a good working environment and by setting tangible goals that provide an economic return for employees.
In Brazil, is there any prejudice in the labour market when it comes to hiring non-local candidates?
Employment opportunities for non-locals exist mainly for middle and high positions in the market. However, a poor command of the language can be a problem as they may not be familiar with the terms. Brazil has a big cultural difference between regions, which make us particularly receptive.
What would you say is the proportion of small and medium-sized companies or family businesses versus large companies or multinationals?
Our market is characterised by a large majority of small and medium-sized enterprises, including family businesses. I would say that they account for 80% of the national market.
What new developments in legislation affect human resources?
Labour legislation has recently changed for the better, with major effects on labour relations and greater freedom for employees and employers. The biggest problem is still hiring and firing costs and income taxes. This issue is currently being discussed by the government to reduce labour taxes.
We are giving a good overview of the characteristics of the labour market, aren’t we?
Yes, but all these details are very important, they mean the difference between finding the person you need or wasting your company’s time and money, delaying projects…
Luiz, now for companies, what are the most common notice periods in your country when a candidate announces that he/she is leaving?
The legal notice period is 30 days.
Would you say that companies have a very strong corporate culture?
Large multinationals and those that are market leaders own and invest in corporate culture. On the other hand, smaller companies find it more difficult to invest in this area, which limits them from developing a strong corporate culture.
What are the main aspects that a company should be aware of before considering recruiting candidates in Brazil?
The company needs to understand the labour laws and taxes in Brazil. The cost of recruitment can represent an increase of almost 60% of the value of the candidate. My recommendation is to contact a specialist in the field before recruiting.
What details are not taken into account by companies setting up in Brazil?
The business environment in Brazil is complex and requires companies to have a clear understanding of local rules and regulations. Therefore, I would recommend hiring specialists in this area.
When hiring a candidate, what do companies valued most?
I would say that the candidate’s experience and previous track record are the issues most valued by companies in Brazil.
Luiz, which skills are most in demand locally?
Without a doubt, languages are the most demanded skill.
And what is more common, temporary contracts or permanent contracts?
Curiously enough, temporary hiring is more common at the end of the year, when demand from companies and services increases.
In companies, is there trade union pressure or wage tables based on agreements? Or, on the contrary, are they governed by the free market?
Nowadays, trade unions are not very active, they have considerably reduced their actions in companies. Even so, there is more union pressure in sectors such as automotive, finance and industry in general.
Is flexible working common in companies?
Yes, it is. In Brazil, flexible working is common. Moreover, with the arrival of Covid-19, the way of working in companies has changed, and many companies have found it necessary to move the office to the home office.
Luiz, how do candidates search for jobs and do they use social networks or job portals to do so?
Yes, candidates are often active on networks such as LinkedIn, but they also use specialised job portals. Nowadays, everything is automated by companies that have their own HR department or outsource the area.
What do candidates’ value most when looking for a job?
When looking for a job, they value the salary, the project and the location.
What does it mean for local talent to work for a Spanish company, and is it attractive?
Any foreign company is considered attractive as long as it has prospects for professional growth and opportunities for cultural and professional exchange.
Tell us a little about education in Brazil, which universities are most highly valued?
I would say that the most valued universities are USP Sao Paulo, Insper SP, Ibmec Rio de Janeiro, Unicamp – Campinas, FGV-SP and Faap-Sp.
And what types of studies are most valued?
Studies in Engineering, Technology, Finance, Medicine and Business Administration are the most valued.
Luiz, to finish, we would like to know about you, what do you love about recruitment?
The happiness of seeing clients grow and seeing the candidates we selected thrive along the same lines. This shows that we are on the right track and that the work has been done well. After 11 years recruiting in Brazil, I can say that we maintain a loyal client portfolio because these companies have identified in us a service and quality that other recruitment companies do not respect or consider secondary.
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