Source: Marchello74/Shutterstock
Brazil has been a popular tourist destination for many years. Located in South America, it has the largest coastlines in the world and shares borders with every other country apart from Ecuador and Chile.
It is known for its vibrant culture, diverse geography, great weather and, of course, natural beauty. But from a business perspective, what makes Brazil so unique?
With more than 214 million inhabitants and an area of 8.5 million square kilometres, Brazil is the fifth-largest country in the world. The country also has a large employee population of over 80 million people. Brazil possesses several key strengths across its agriculture, construction, hospitality, energy, infrastructure, process and tech industries.
Moreover, Brazil offers a favourable business environment with various tax incentives, low labour costs, and a growing economy. The government has made significant efforts to encourage foreign investment, and the country has several economic zones that offer special benefits and facilities for foreign investors.
As a rapidly developing economy, the country's Human Development Index (HDI) ranks at 0.754, placing it 87th in the world, while its Gross Domestic Product (GDP) totalled USD$1.445 trillion in 2020.
Market Trends
The economic and political changes in the country have impacted market trends. Examining the distribution of brand value of top Brazilian brands in the previous year can provide insight into the momentum of this industry.
Also, as the market adapts to changing circumstances, this transformation has presented new opportunities for businesses to explore sustainable and environmentally-friendly approaches. On the other hand, consumers in Brazil are increasingly conscious of environmental issues and are demanding more eco-friendly products and services from companies. As a result, it is essential for companies in the country to embrace sustainability as a core value to stay current and relevant nowadays.
Let's take a deeper look atat some of the current market trends in Brazil.
1. Renewable energy is on the rise
Source: ANEEL and ABSOLAR updated on March, 2023.
Brazil has a tremendous competitive advantage. Renewable energy sources account for more than 80 per cent of Brazil's electricity matrix, led by hydroelectric, solar and wind, while the global average is 30 per cent. This can be an essential path for economic recovery.
Brazil is a world leader in renewable energy job creation, accounting for over 1 million vacancies in the sector. Renewable energy generation is on the radar of multinationals such as Equinor, Neoenergia, EDP, Engie, and Petrobras.
The latest RECAI rankings presented Brazil in 14th place. RECAI ranks the top 40 countries worldwide on the attractiveness of their renewable energy investment and deployment opportunities, a key part of the energy transition.
2. Increased focus on carbon credits
Some companies still need to reduce their emissions of gases that cause global warming, and they are resorting to the carbon credit market. But how does it work? They compensate for carbon emissions by buying credits from carbon capture projects.
Due to the Amazon rainforest and its biodiversity, Brazil has enormous potential to turn environmental preservation into a profitable business. A carbon credit means that a ton of carbon dioxide is not released into the atmosphere because of an area that has been conserved or reforested.
According to McKinsey, Brazil could generate up to $5 billion a year in carbon credits and 1,5 million jobs by 2030. Despite the expressive numbers, the country still needs regulation for this type of negotiation. Transactions occur in a voluntary market, and independent entities audit credits.
3. Tech is booming
Brazil presents an opportunity for establishing a well-recognised tech cluster in Latin America for innovative businesses, with different cities competing for the "Brazil's Silicon Valley" title. São Paulo stands out since it has an established culture of entrepreneurship and provides a beneficial business environment, making it one of the leading cities in this regard.
On the green tech startup landscape, companies such as Carbonext and Solfácil have demonstrated their relevance for venture capital financing, emphasising the demand for energy and tech professionals with green skills and technical familiarity with artificial intelligence and machine learning.
Also, projects like the Porto Maravalley in Rio de Janeiro illustrate Brazil's increasing demand for technology clusters, particularly in major cities such as Rio.
4. Oil and gas remains a strategic sector
Brazil is one of the world's largest oil and gas producers, and the sector is a vital part of the country's economy. Currently, Brazil is in 9th place in the global ranking, remaining in the same position as in 2020.
Like many other industries, oil and gas have been impacted by the energy transition and the recent pandemic of COVID-19. However, the sector has significant opportunities, like Brazil's pre-salt reserves and technological advances.
Best ways to attract and retain talent in Brazil
In addition to competitive remuneration, providing considerate benefits is very important for recruiting or retaining top-notch talent in Brazil. But that’s not all of it. An organisation's culture, work environment, and people all hold importance, along with appealing benefits tailored for Brazilians, flexible work arrangements, and a well-defined career progression programs.
Source: Vergani Fotografia/Shutterstock
Appealing benefits
During the initial stages of the recruitment process, benefits play a crucial role, particularly when it comes to the job description and the final offer. A plethora of benefits are available, but some of the most sought-after ones include gym memberships, meal vouchers with substantial value, post-graduate programs, language course scholarships, private pension schemes, and so on.
In sectors where remuneration is comparable, the divergence can be attributed to the type of benefits offered. Hence, having multiple options for additional compensation is crucial for attracting and retaining the best talent.
Flexible Work
Over the past few years, offering flexible work arrangements has emerged as a key factor in attracting talent and ensuring employee satisfaction. The ability to have greater autonomy over one's own working hours and location of work has had a significant impact on how individuals perceive the balance between work and personal life.
This trend holds true in Brazil as well, where companies that prioritise providing their workforce with the freedom to determine their own schedules are more likely to attract and retain talent that values flexibility.
Structured career pathway
Career progression holds significant sway over job candidates, with even the younger generation displaying a strong motivation to progress and develop their careers through learning. In a survey conducted by Workplace Intelligence and Amazon, 66% of the workforce expressed the likelihood of switching jobs within a year due to the lack of opportunities for career growth and skill development. This shows how having a well-structured career progression plan can make a pivotal difference. Employees seek clarity regarding their career trajectories and having a clear plan in place can help to meet and manage their expectations.
How can Airswift help you?
Over 185 staff in the Rio office. / Photo: Nana Terra
Brazil is home to one of Airswift’s strategic resource Delivery Centres, which provides 24/7 volume recruitment, expatriate recruitment, and development of emerging markets. Our discipline-focused recruitment team in Rio de Janeiro has expansive networks of skilled candidates who speak multiple languages, including English, Spanish, Portuguese, Cantonese, Mandarin, Malaysian, Indonesian, and more.
Airswift partners with companies in over 30 countries and territories across Latin America, including Central America and the Caribbean. We continue to build our service experience by delivering tailored workforce solutions to various projects and clients within the oil and gas, renewable energy, construction, chemicals, and power industries.
Our Senior Business Development Manager, Maria Gonzalez, said:
Our geological wealth and tax benefits are vital elements attracting companies worldwide. Here you find the good winds blowing strong in northeastern Brazil, sun, water, and oil across the country, and transform them into power. Airswift connects local and international talent to the biggest projects, and I love to build long-term partnerships with clients.
Are you a candidate looking for a new job? Or a company needing a support? The combined local expertise and global knowledge allow us to provide top talent for the contingent and permanent staffing needs of our clients across the region. Our Rio de Janeiro office serves as the regional hub for Latin American operations.
This post was written by: Nana Terra, Tomás Battaglia and Raphael Santos, Content Marketing Coordinators
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