Written by Renzo Medina, Office Administrator – Peru
Recruitment can often be likened to a long-term relationship. It begins with a blind date and, ideally, evolves into a lasting partnership where both parties collaborate to ensure the connection remains healthy and stable.
What transpires when this relationship commences between individuals from different countries? Two cultures, each with its own nuances, may inevitably encounter certain challenges, what we might term cultural clashes. These misunderstandings often stem from a lack of research or awareness about each other’s contexts. Questions arise, such as: “Is this customary for you as it is for me?” Could this be considered a misstep?
In today’s globalised economy, numerous companies are venturing beyond their home countries, establishing operations in new cities and nations to broaden their reach. Latin America, particularly Peru, has garnered significant attention, not only due to its strategic location but also because of its increasing prominence in the region. A prime example is the inauguration of the Port of Chancay, poised to become the largest in Latin America, which will reduce shipping times and open new trade routes.
Nonetheless, as with any relationship, certain errors recur more frequently than they should. Therefore, if you’re contemplating hiring in Peru or elsewhere in Latin America, here are seven common mistakes foreign companies make when attempting to integrate with local teams.
Spoiler alert: most can be avoided with proper preparation, much like remembering to mute your microphone during a video call.
1. Assuming Universal English Proficiency
It’s a common misconception that, given the global prevalence of English, everyone possesses a high level of proficiency. However, this assumption is a rookie error. While English proficiency has improved in Spanish-speaking countries, it still lags behind other regions. Certain sectors (particularly executive roles or multinational environments) may exhibit higher levels of proficiency, but this isn’t the norm across all levels. Such disparities can lead to communication breakdowns from the outset, creating invisible barriers that complicate subsequent interactions.
Occasionally, you might encounter the ideal candidate: someone multilingual and adept in multicultural settings. Yet, challenges arise when discussions become technical or when there’s an expectation to comprehend and respond to idiomatic expressions native to English speakers. These situations often result in misunderstandings and mistranslations, so it is important to be mindful of such issues potentially arising.
2. Failing to Adapt Organisational Culture to the Local Context
Implementing rigid organisational models without modification, as if they were universally applicable templates, seldom yields success. Elements such as flexible working hours, after-work activities, employee benefits, and even email etiquette possess local nuances that must be acknowledged.
Attempting to transplant a corporate culture without tailoring it to the local environment is akin to navigating Lima with a map of another city: some streets might align, but you’re likely to encounter unnecessary detours or, worse, become completely disoriented.
3. Overlooking Local Labour Laws and Employee Benefits
In Peru, labour legislation tends to be notably protective of workers. Specific benefits, such as bonuses (Gratificacion), severance pay (CTS), and distinct vacation policies, are integral aspects that may not exist or be interpreted differently in other countries.
Consider the Peruvian “gratificación” compared to Chile’s equivalent. Despite their geographical proximity, the differences are significant in terms of nomenclature, amount, and legal requirements. In Chile, it is called “aguinaldo” and is not mandatory in the private sector and typically represents a percentage of the salary. Conversely, in Peru, the “gratificación” equates to 100% of the monthly remuneration without deductions and is a legally mandated benefit paid twice a year: in July for Independence Day and in December for Christmas.
This example underscores how a single concept can vary markedly even among neighbouring countries. To add to the complexity, in Peru, the “aguinaldo” refers to an additional, voluntary incentive provided by companies in December, often in the form of gift vouchers or Christmas hampers or other useful gifts for the workers and their family.
Without a thorough understanding of these nuances, it’s easy to make mistakes, either through ignorance or, more detrimentally, by inadvertently fostering a negative work environment.
4. Poorly Communicated Expectations from the Outset
Frequently, contracts are signed or agreements made without clear discussions regarding role expectations, short- and medium-term objectives, or preferred working styles. This initial misalignment might seem trivial but can evolve into persistent misunderstandings, frustration, and even early turnover.
It’s comparable to inviting someone to dinner without mentioning you’re vegan: everyone arrives with different expectations, leading to confusion. In the workplace, such ambiguity can result in misdirected tasks, unmet goals, or a disconnect between offerings and actual needs.
Investing time to align expectations from the beginning is not a luxury; it is a strategic necessity that can distinguish between a successful hire and a failed experience.
5. Neglecting to Adapt Leadership Styles to Local Norms
Leadership in Peru, as in many Latin American countries, often emphasises relational and emotional aspects more than in other cultures. Focusing solely on results isn’t sufficient; the manner in which goals are achieved holds significant importance. Human interaction, daily rapport, and approachability are crucial elements that can be as influential as performance metrics.
Adopting a more distant, direct, or rigid leadership style—common in countries like Germany or Japan—risks being perceived as cold, authoritarian, or indifferent. Such perceptions can quickly erode trust, commitment, and team motivation. In Peru, where interpersonal trust, empathy, and mutual respect are foundational to a positive work environment, overlooking these cultural sensitivities can have profound repercussions. Moreover, micromanagement is generally frowned upon and often viewed as a form of workplace harassment.
In essence, leading without considering cultural sensitivities is like starting the week without coffee: progress is possible, but the journey is unnecessarily arduous.
6. Underestimating the Importance of Workplace Atmosphere
In Latin America, and particularly in Peru, the work environment is pivotal for team cohesion and performance. Celebrations for birthdays, shared meals, greetings on special occasions, and daily courtesies aren’t mere extras; they are integral to the organisational culture.
Adopting a purely transactional approach—focusing solely on results, metrics, or deadlines—can be perceived as impersonal or disconnected. In settings where human warmth and interpersonal relationships are valued alongside operational efficiency, neglecting these social codes can be a significant miscalculation. It’s not about compromising professionalism but recognising that, here, human connections are part of the job.
7. Disregarding Input from the Local Team
It might seem elementary, yet it’s often overlooked: no one understands the local reality better than those who live and work within it daily. Actively listening to local teams, providing them with a platform to voice opinions, and valuing their suggestions isn’t just respectful—it’s a smart strategy.
Imposing decisions without dialogue or downplaying the perspectives of on-the-ground teams risks implementing actions misaligned with the actual context. It’s akin to entering a match without knowing the players’ positions: coordination falters, avoidable errors occur, and the team lacks unified direction.
Incorporating local talent into decision-making processes isn’t merely courteous; it’s essential for adaptability and success in the region.
Contemplating Recruitment in Peru?
Expanding into a new country transcends strategic decisions; it’s a commitment to understanding, adapting, and building genuine relationships within a different context. Hiring in Peru—or any part of Latin America—involves more than reviewing CVs or signing contracts. It demands cultural sensitivity, open dialogue, and the recognition that operational norms vary across regions.
The mistakes discussed in this post aren’t necessarily indicators of failure but opportunities to improve from the outset. As with any long-term relationship, success stems from listening, learning, and collaborative effort—not imposition.
If you’re evaluating the prospect of establishing operations or hiring talent in Peru—or another country in the region—it’s advisable to proceed with informed guidance. Ensure your entry into the country feels less like an intrusion and more like a partnership.We can assist in localising your organisational culture, navigating legal intricacies, and assembling a local team that not only comprehends your vision but also contributes to its growth from day one. Let’s initiate a conversation. Crossing borders shouldn’t equate to crossing fingers.
Harris Gomez Group METS Lawyers ® opened its doors in 1997 as an Australian legal and commercial firm. In 2001, we expanded our practice to the international market with the establishment of our office in Santiago, Chile. This international expansion meant that as an English speaking law firm we could provide an essential bridge for Australian companies with interests and activities in Latin America, and to provide legal advice in Chile, Peru and the rest of Latin America. In opening this office, HGG became the first Australian law firm with an office in Latin America.
As Legal and Commercial Advisors, we partner with innovative businesses in resources, technology and sustainability by providing strategy, legal and corporate services. Our goal is to see innovative businesses establish and thrive in Latin America and Australia. We are proud members of Austmine and the Australia Latin American Business Council.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. It does not create a solicitor-client relationship, and readers should seek independent legal advice for their specific circumstances. Harris Gomez Group accepts no liability for reliance on this content.