Last updated: October 27, 2026
The Short Answer
Direct hire and staffing are 2 ways to hire full-time talent in Latin America through a partner. With CloudTask Direct Hire, you pay 20% to 30% of first-year base salary once, and the hire joins your payroll. With Managed Staffing, you pay one all-in monthly rate and CloudTask is the contracting party. You direct the work in both.
Staffing vs Recruiting: What Is Direct Hire, and What Is Staffing?
Staffing and recruiting split on who holds the contract once the search ends: in recruiting you do and pay one fee, in staffing the partner does and bills you monthly. Both start the same way. At CloudTask, you get 3 to 5 profiles within 48 hours, each candidate screened on a live call for English, track record and tools.
What is direct hire recruiting?
Direct hire recruiting is a model where a partner finds and vets the candidate and you hire that person onto your own payroll. CloudTask's Direct Hire fee covers sourcing from the CloudTask talent network, screening and vetting, a shortlist of matched candidates, interview coordination and offer support. You pay 20% to 30% of first-year base salary, one time, quoted per role and paid when the candidate accepts. From that day on, payroll and compliance sit with you.
What is Managed Staffing?
Managed Staffing is CloudTask's staffing model: one all-in monthly rate per person, with CloudTask as the contracting party. The pricing page lists what the rate covers: worker payments, compliance and employment administration, onboarding support at day 7, 30 and 60, ongoing check-ins, and time and activity tracking if you want it. You pay no placement fee. Nierman Practice Management, a dental billing service, has added 30+ hires on Managed Staffing.
Where an employer of record fits
An employer of record (EOR) such as Deel, Remote or Oyster legally employs a person you already found, in that person's country, for a monthly fee per employee. Deel lists $599 per EOR employee per month. Remote and Oyster each list $699 per employee per month (all 3 checked October 12, 2026). The EOR handles the employment paperwork. Finding and vetting the candidate stays your job.
| Partner type | Finds the person | Holds the contract | How you pay |
|---|---|---|---|
| Recruiter (Direct Hire) | Yes | You, or your EOR | One-time fee |
| Employer of record | No | The EOR | Monthly fee per employee, plus salary |
| Staffing partner (Managed Staffing) | Yes | The partner (CloudTask is the contracting party) | One monthly rate per person |
Contract-to-hire is a third path
Contract-to-hire means the person starts as a contractor for a trial period, and you decide later whether to bring them onto your payroll. CloudTask publishes 2 models, Direct Hire and Managed Staffing. If you want a trial-then-hire setup with any partner, ask before you sign whether you can move a hire from staffing to your own payroll, and what that move costs.
Direct Hire vs Managed Staffing: Side by Side
CloudTask's 2 models differ on who holds the contract, how you pay and how long the guarantee runs. Both start with the same search, the same shortlist and a $299 deposit per hire. Every row below comes from CloudTask's pricing and how it works pages.
| Factor | Direct Hire | Managed Staffing |
|---|---|---|
| Who holds the contract | You. Your hire joins your payroll | CloudTask is the contracting party |
| Payroll and compliance | You, or your EOR | Handled by CloudTask |
| Fee | 20% to 30% of first-year base salary, one time, quoted per role, paid when the candidate accepts | One all-in monthly rate per person, nothing added to it. No placement fee |
| To start | $299 deposit per hire, credited toward the placement fee | $299 deposit per hire, credited toward the first monthly payment |
| Shortlist | 3 to 5 screened profiles within 48 hours | 3 to 5 screened profiles within 48 hours |
| Replacement guarantee | 6 months, 1 replacement, same job description | 24 months, replacements not capped |
| Minimum term | None | 6-month minimum term for roles that create demand |
| Day-to-day direction | You | You, with CloudTask check-ins and escalation |
| Ending the engagement | Local labor rules, or your EOR's terms | Ask for notice and exit terms before you sign |
Key point: Both models give you the same search and the same control over the work. You are choosing who carries payroll and compliance, whether you pay once or monthly, and which guarantee you want.
Who Employs the Person and Who Runs Payroll?
In CloudTask Direct Hire, the hire joins your payroll and "payroll and compliance stay yours throughout," in the words of the pricing page. In Managed Staffing, CloudTask is the contracting party and handles worker payments, compliance and employment administration inside the monthly rate.
Direct Hire in Latin America raises a question US founders rarely face at home: how do you pay someone in Colombia or Mexico without a local company? You have 3 routes:
- Your own entity in the hire's country. It gives you the most control and takes the most setup.
- An employer of record, at $599 to $699 per employee per month at Deel, Remote and Oyster (October 2026 list prices).
- A contractor agreement, the lightest setup. Check with local counsel how the hire's country treats a contractor who keeps fixed hours under your direction.
Ask any Direct Hire partner which route their clients use in the hire's country, and whether they help set it up. If you want none of the 3, Managed Staffing removes the question: you get 1 invoice per person.
How Much Does Each Model Cost?
A CloudTask hire in Latin America costs up to 75% less than an equivalent US hire in either model. Between the 2 models, timing makes the difference: Direct Hire puts a fee up front and leaves employment costs to you, while Managed Staffing folds everything into one monthly number. For salaries, see what a hire costs in Latin America.
What Direct Hire costs
CloudTask's Direct Hire fee is 20% to 30% of first-year base salary, quoted per role. Take a mid-level SDR. Hire With Near publishes a range of $2,000 to $2,500 a month for that role in Latin America (checked October 12, 2026). At $2,500 a month, base salary is $30,000 a year and the fee lands between $6,000 and $9,000. For comparison, the Bridge Group's 2025 SDR report puts the median US SDR base at $55K.
For a market reference, HireTalent.ph (updated August 2026) cites direct hire fees of 15% to 25% of first-year base and staffing markups of 30% to 70% on pay. Those are general market ranges. CloudTask quotes its own.
What the Managed Staffing rate includes
CloudTask's Managed Staffing rate is one all-in monthly price per person: "That is the number, and there is nothing added to it." It covers the person's pay, compliance and employment administration, payroll processing, onboarding support and ongoing check-ins. CloudTask quotes the rate per role, so ask for it on your first call.
Comparing the 2 over 12 and 24 months
To compare the models, add up Direct Hire's full cost and divide by the months you expect the person to stay. The table uses the SDR example above, with an EOR as the employment route.
| Direct Hire cost item | 12 months | 24 months |
|---|---|---|
| Base salary ($2,500 a month) | $30,000 | $60,000 |
| CloudTask Direct Hire fee (20% to 30%, one time) | $6,000 to $9,000 | $6,000 to $9,000 |
| EOR fee ($599 to $699 a month) | $7,188 to $8,388 | $14,376 to $16,776 |
| Total | $43,188 to $47,388 | $80,376 to $85,776 |
| Monthly equivalent | $3,599 to $3,949 | $3,349 to $3,574 |
Hold your Managed Staffing quote for the same role against the last row. The longer the person stays, the more months absorb the one-time fee, so Direct Hire's monthly equivalent drops over time. The totals leave out commission, equipment and any employer costs your EOR bills on top of its fee. Ask your EOR for a full quote in the hire's country.
What Happens If the Hire Doesn't Work Out?
CloudTask Direct Hire carries a 6-month replacement guarantee with 1 replacement for the same job description and no placement fee on the replacement. Managed Staffing carries a 24-month guarantee, and replacements are not capped. If early turnover worries you, read why LATAM hires don't stick before you pick.
Published replacement guarantees among LATAM hiring partners run from 60 days to the length of the engagement. Each figure below comes from the company's own site, checked October 12, 2026:
| Partner and model | Published guarantee |
|---|---|
| CloudTask Direct Hire | 6 months, 1 replacement, same job description |
| CloudTask Managed Staffing | 24 months, replacements not capped |
| Hire With Near, direct hire | 180-day |
| Hire With Near, staffing | For the duration of the engagement |
| South, headhunting | 120-day replacement guarantee |
| Somewhere, Direct Hire | 6 months, 1 free replacement |
| Somewhere, Talent On-Demand | Unlimited free replacements |
| LatamCent | 60-day replacement guarantee |
| RemotelyTalents | 90-day replacement guarantee |
Key point: Read a guarantee next to its model. CloudTask, Hire With Near and Somewhere each publish both models, and in all 3 the monthly model carries the longer coverage.
Minimum Terms and Commitments
CloudTask Direct Hire has no minimum term. Managed Staffing runs on a 6-month minimum term for roles that create demand: outbound SDRs, BDRs, demand generation and full-cycle AEs.
Sales roles need that runway anyway. The Bridge Group's 2025 report puts the average SDR ramp at 3.0 months, so plan the first 6 months around ramp in either model.
You Direct the Work in Both Models
CloudTask's how it works page says it for Managed Staffing: "You direct the work." In Direct Hire you manage the person as your own hire. Either way, the hire reports to your team and follows your priorities.
Managed Staffing adds a layer around that relationship. CloudTask runs onboarding check-ins at day 7, 30 and 60, you see hours and activity if you turned tracking on, and CloudTask steps in "when something is off." Direct Hire hands the relationship to you from day one.
Ending the Engagement
Ending a Direct Hire follows the labor rules of the hire's country, or your EOR's terms if you use one. Read those before the first day, since notice and severance rules differ across Latin America.
For Managed Staffing, the exit terms live in your agreement. Ask any staffing partner, CloudTask included, these 4 questions before you sign:
- How much notice do I give to end an engagement?
- What happens when the minimum term ends? Does the engagement roll monthly?
- Can I move the person onto my own payroll later, and what does that cost?
- Who handles the final payment and paperwork with the worker?
Which Model Fits Your Company and Role?
CloudTask opens both models to every role it places, so your setup decides more than the job title. The matrix below follows CloudTask's published terms.
| Your situation | Model to look at first | Why |
|---|---|---|
| Your sales leader will coach an SDR, BDR or AE live every day | Direct Hire | CloudTask's pricing page points demand roles here: live call feedback and daily coaching work best coming from your sales leader, and there is no minimum term |
| You want an SDR, BDR or AE without running payroll abroad | Managed Staffing | Payroll and compliance included; 6-month minimum term applies |
| First LATAM hire, no entity, no EOR | Managed Staffing | 1 invoice per person, no employment setup on your side |
| Ops, billing or support roles that will scale | Managed Staffing | Nierman added 30+ hires on this model |
| You already have a LATAM entity or an EOR | Direct Hire | One fee, no monthly rate, no minimum term |
| You want the longest guarantee | Managed Staffing | 24 months with replacements not capped, vs 6 months and 1 replacement |
Weighing a partner against running the search yourself is a different decision. See hiring on your own vs hiring with CloudTask and CloudTask vs recruiters.
Key Takeaways
- Direct Hire: you pay 20% to 30% of first-year base salary once, the hire joins your payroll, and the guarantee covers 6 months with 1 replacement.
- Managed Staffing: one all-in monthly rate per person, CloudTask is the contracting party, and the guarantee covers 24 months with replacements not capped.
- You direct the work in both models. The models change who carries payroll and compliance.
- For a Direct Hire in Latin America, budget for an employment route: your entity, an EOR ($599 to $699 a month at Deel, Remote and Oyster) or a contractor agreement.
- Managed Staffing carries a 6-month minimum term for roles that create demand. Direct Hire has no minimum term.
Frequently Asked Questions
What is direct hire recruiting?
Direct hire recruiting is a model where a recruiting partner sources, screens and presents candidates, and you hire the chosen person onto your own payroll. You pay a one-time fee instead of a monthly rate. At CloudTask, the Direct Hire fee is 20% to 30% of first-year base salary, quoted per role and paid when the candidate accepts. Payroll and compliance stay with you.
Who pays the fee for direct hire?
The hiring company pays the direct hire fee, not the candidate. At CloudTask, you pay 20% to 30% of the hire's first-year base salary, one time, when the candidate accepts. The $299 deposit per hire is credited toward that fee. If the hire leaves within 6 months, CloudTask runs the search again with no second fee.
What are the downsides of direct hire?
Direct hire puts payroll, compliance and the legal setup on you. In Latin America that means your own entity, an employer of record at $599 to $699 per employee per month, or a contractor agreement. At CloudTask the Direct Hire guarantee covers 6 months and 1 replacement, against 24 months with replacements not capped on Managed Staffing. You also pay the full fee when the candidate accepts.
Do I need an employer of record to direct hire in Latin America?
A Direct Hire joins your payroll, so you need a legal way to pay them in their country: your own entity, an employer of record or a compliant contractor agreement. Deel, Remote and Oyster list EOR prices of $599 to $699 per employee per month. With Managed Staffing, CloudTask is the contracting party and handles worker payments and compliance, so you skip that setup.
Is there a minimum contract term?
Direct Hire at CloudTask has no minimum term. Managed Staffing has a 6-month minimum term for roles that create demand: outbound SDRs, BDRs, demand generation and full-cycle AEs. Ask any partner for notice and exit terms in writing before you sign.
Start Your Search
CloudTask has placed more than 10,000 hires since 2016, with 85% still in seat past 90 days. Each hire carries a $299 deposit, credited toward the placement fee on Direct Hire or the first monthly payment on Managed Staffing. It is not a subscription. You get 3 to 5 profiles within 48 hours, each screened on a live call.
Start your search or compare both models on the pricing page.
