In the whirlwind world of tech talent acquisition, where the stakes are as high as the technology is cutting-edge, the emergence of AI has thrown a delightful curveball into the mix. It’s a realm where the traditional internal IT recruiters, the unsung heroes behind the scenes, meet the specialist sharpshooters of the recruitment world: the AI-focused headhunters. Together, they form an unbeatable duo, much like the legendary Shaq-Kobe partnership, driving the formation of powerhouse AI teams.

Enter the AI Recruiting Specialist

As we delve into the world of AI team-building, it becomes clear that this isn’t just any recruitment rodeo. The AI frontier demands a breed of recruiters with a laser-focused skill set – the AI recruiting specialists. These maestros of talent acquisition dance to a different tune, one that resonates with the unique beats of AI technology and its myriad of specialized roles.

At Tesoro AI, we work in harmony with CTOs and internal recruiters to scout and secure the crème de la crème of AI talent. It’s a collaborative symphony that results in teams capable of launching AI innovations that are nothing short of revolutionary.

Internal IT Recruiters vs. AI-Focused Headhunters: 

1. Filling the Roster: Positions They Scout

Internal IT Recruiters: Consider these professionals as versatile all-rounders in the tech ecosystem, adept at scouting a wide array of IT positions, including those pivotal to AI initiatives. With proficiency spanning from Cyber Security Guardians to Network Strategists and Creative UI/UX Visionaries, these recruiters have a foundational understanding of the diverse skill sets required to fully equip an IT ensemble.

AI-Focused Headhunters: These are the sharpshooters, with a laser focus on AI and its associated technological frontiers. They possess the agility to identify and engage top-tier talent for specialized roles such as Data Scientists, Machine Learning Engineers, and AI Product Strategists, constantly updating their playbook as new positions like GenAI Engineers and Prompt Engineers emerge on the field. Their deep-rooted network and keen understanding of the unique requirements within AI teams underscore their prowess in securing key, challenging-to-fill positions.

As we navigate through the intricate landscape of tech recruitment, it becomes evident that whether strategizing with internal IT recruiters or making precision moves with AI-focused headhunters, each brings a distinct set of skills to the table, orchestrating the formation of formidable AI teams ready to lead the next wave of technological innovation.

2. Crafting the Recruiting Strategy: Approach & Mindset

Internal IT Recruiters: These strategists employ a comprehensive approach to scouting talent, weaving together a mix of traditional and digital tactics to pinpoint potential candidates. They deploy a multi-channel strategy, leveraging job postings, team referrals, and talent databases, akin to casting a wide net in the vast ocean of tech talent. Their approach is more about creating opportunities for the right talent to find their way to the team, somewhat like setting the stage for serendipitous matches. Moreover, their focus on employer branding, as highlighted by an Indeed survey, is a testament to their commitment to not just attracting talent, but drawing in the right fit for the team’s culture and vision.

AI-Focused Headhunters: These specialists execute a more sniper-like approach, zeroing in on candidates with the exact skill set and mindset required for unique AI roles. Their strategy goes beyond the traditional casting of a wide net; they’re more about precision targeting, actively seeking out candidates who might not even be considering a move. Their deep industry networks, proprietary databases, and direct outreach methodologies enable them to engage with high-caliber talent on a personal level, crafting tailored messages that resonate with the individual aspirations and professional trajectories of potential candidates.

This nuanced approach to recruitment, where internal IT recruiters set the stage for broad talent engagement and AI-focused headhunters execute targeted talent acquisition, reflects the multifaceted strategy required to navigate the complex and ever-evolving AI talent landscape. It’s a balanced mix of broad-spectrum engagement and sniper-like precision, ensuring that the assembled team is not just skilled, but perfectly aligned with the innovative and dynamic nature of AI projects.

3. Setting the Game Plan: Hiring Process

Internal IT Recruiters: These are the team’s strategists, crafting the game plan from scouting to signing. They’re pivotal in defining roles, initiating the talent search, and ensuring new recruits seamlessly transition into their positions. According to HR Technologist, they’re building long-term talent pipelines, enhancing the recruitment journey to ensure it’s as smooth as a well-drilled play. Their collaborative efforts with team leads and department heads ensure that each recruit is not just a fit for the role but also aligns with the team’s spirit and playbook, enhancing the squad’s overall synergy.

AI-Focused Headhunters: These headhunters play the role of specialist coaches, identifying and nurturing talent for the most pivotal positions in the game. Their expertise isn’t just in spotting talent but in engaging those not actively looking to change teams, convincing them to consider new opportunities. They’re adept at presenting the role in a way that resonates with the candidate’s career goals and aspirations, acting as the bridge between the talent and the team. With their deep understanding of the AI market’s dynamics, they also play a crucial role in negotiations, ensuring that the offer is competitive and meets the expectations of both the player and the team.

In this complex game of recruitment, internal IT recruiters lay the groundwork, setting up a broad and inclusive search strategy, while AI-focused headhunters execute precision plays, targeting specific roles that require a unique skill set. Together, they ensure the team is not just skilled but also well-rounded, ready to take on the challenges of the AI arena.

4. The Scoreboard: Compensation

Internal IT Recruiters: Think of these professionals as steady players on a fixed contract, drawing a consistent salary from the organization. Their compensation package often includes performance bonuses and incentives, but these are tied to broader organizational goals, reflecting their role in the larger team strategy. This setup not only provides financial stability but also aligns their efforts with the long-term success of the team, encouraging a deep investment in building a winning squad. Additionally, their position within the organization offers pathways for career advancement, further motivating their commitment to the team’s growth.

AI-Focused Headhunters: In contrast, AI headhunters are like free agents, their earnings directly tied to their success in the field. Their compensation model is performance-based, with fees contingent on successful placements. This arrangement ensures their focus is razor-sharp, akin to a player who’s incentivized by game-winning bonuses. While some may operate on retainer, reflecting a more stable income akin to a base salary, the majority thrive on the thrill of the hunt, with their compensation mirroring the high stakes of securing top talent for niche roles.

In this competitive field, the compensation structures for internal IT recruiters and AI-focused headhunters are designed to motivate and reward their unique contributions to the team. Whether it’s the stability and long-term growth offered to the internal recruiters or the high-stakes, performance-based rewards for the headhunters, each framework ensures that the talent scouts are aligned with the overarching goal of assembling a championship-worthy AI team.

In the golden era of startup funding, venture-backed AI startups could freely allocate substantial resources to attract top AI talent, necessary for competing with the vast resources of big tech firms. However, the AI sector, despite experiencing a 9% year-over-year growth in funding since 2022, now faces a paradigm shift.

The focus of investors and board directors has pivoted towards profitability. This shift is particularly impactful for AI founders, who must be acutely budget-conscious due to the incremental costs involved in delivering AI solutions, including data acquisition, model training, and deployment.

Moreover, the necessity to pay premium salaries for the unique skillsets of AI talent adds another layer to the budgeting puzzle. This scenario creates a complex budgeting conundrum for AI teams.

That said, the dream of achieving the Rule of 40, a growth and efficiency metric used by VCs where revenue growth rate plus EBITDA margin equal 40%, is well within reach. The aforementioned issues can be effectively addressed through intelligent talent acquisition strategies.

In my experience as a software investor, 70% of a startup’s expenses are in human capital, with a significant portion allocated to R&D. By limiting “overspending” on our product team, we can control our cost infrastructure providing the flexibility to make other high ROI investments such as go-to-market strategies.

Here are a couple highly effective AI talent strategies:

1. Leveraging AI Experts on a Fractional Basis
2. Develop a Nearshore Talent Acquisition Strategy

Leveraging AI Experts on a Fractional Basis

Hire a 20-year AI Expert for $200/hour on a fractional basis versus footing the bill for a full-time employee, which could cost in excess of $400,000/year (plus equity).

Note: It’s rare to find “discounts” on the most experienced AI experts. Given the shortage of experts, their talent is in demand globally and their English speaking ability enables them to access global opportunities.

What you’re looking for is more of a Fractional AI Officer. Many startups, primarily those without a technical founder with AI expertise, attempt to hire a senior full-time AI specialist to build their AI infrastructure. What we find is that this strategy often leads to unexpectedly rapid turnover.

Senior AI specialists, with their advanced experience and skills, may find themselves underutilized in roles that don’t offer continuous high-level challenges. Mundane tasks, albeit essential in early development stages like data cleaning, are not engaging for these professionals.

Focus on fractional hiring. This approach allows startups to utilize senior AI talent for strategic, high-level work without committing to the costs and obligations of a full-time position. The startup can then leverage more junior AI professionals to carry out the execution (with check-ins from the Senior AI professional). It’s a budget-friendly solution that also ensures the AI projects progress to a point where they can attract additional funding.

Note: Just make sure you own the IP, especially when working with a software development shop.

Supplement Your AI Team With Nearshore Talent

The average LATAM-based, English speaking ML Engineer with 4-6 years experience commands a salary of roughly $5,500 – $6,500/month. This is more than 50% of the average US-based ML Engineer with equivalent experience.

In the investment world, we call this hybrid strategy “averaging down” – bringing down the average cost per engineer by supplementing the team with near shore talent.

How can I comfortably make it to my next round of funding without running out of cash, especially considering that what was once a $50mm round has become a $10mm round? Nearshore talent is the secret weapon.

The reduced cost of nearshore talent is not indicative of lower quality, it is the result of a lower cost of living. Latin America itself is producing homegrown unicorns all across the region, powered by the highly skilled AI specialists and software engineers.

Outsourcing is not an unfamiliar strategy to founders – however, most have historically turned to Eastern European and Middle Eastern markets for cost efficiencies. Leveraging nearshore LATAM AI talent is an increasingly popular strategy for startups.

This approach offers several advantages. Firstly, it provides access to a diverse pool of skilled AI talent at a lower cost compared to hiring in more expensive labor markets. Compared to European or Middle Eastern markets, the reduced geographical and time zone differences facilitate smoother collaboration and communication, ensuring that project workflows and team interactions are as efficient as they would be with a domestic team.

For startups, this means the ability to scale their AI capabilities rapidly and cost-effectively, without compromising on the quality of talent or the agility of operations. Nearshoring not only aids in optimizing the budget but also enriches the team with diverse perspectives, potentially leading to more innovative solutions in AI projects.

Navigating the AI talent landscape in today’s budget-conscious startup ecosystem demands more than just deep pockets; it requires a strategic, nuanced approach.

With Tesoro AI as your strategic talent acquisition partner, you can successfully maneuver through these challenges, ensuring your AI initiatives are not only cutting-edge but also in line with your startup’s financial realities and growth aspirations. Let us empower your startup with the right AI talent – domestic, hybrid, or nearshore – setting the stage for groundbreaking achievements and sustainable growth.

The Latin American tech job market has become a hotbed of innovation, talent, and opportunity in recent years. With leading technology companies setting up shop in countries like Brazil, Mexico, and Argentina, the region is brimming with possibilities. If you’re an employer looking to tap into this burgeoning talent pool, understanding the nuances of hiring in Latin America is paramount. In this article, we’ll provide actionable insights to help you navigate the Latin American tech job market and ensure successful hiring.

1. Understand the Cultural Nuances

Latin America is a diverse region with a rich tapestry of cultures. Recognize the differences between countries – what works in Argentina might not necessarily work in Chile.

Tip: Take time to learn about local customs, holidays, and values. This will not only help in smooth negotiations, but also in building lasting relationships with potential employees.

2. Tap into Local Networking Events and Tech Hubs

Cities like São Paulo, Mexico City, and Buenos Aires have burgeoning tech scenes with regular meetups, workshops, and seminars.

Tip: Engage with local tech communities by sponsoring or attending these events. This puts you in direct contact with potential hires and offers insights into the latest market trends.

3. Offer Competitive Salaries and Benefits

While the cost of living might be lower in some Latin American countries, tech professionals are aware of their worth and global standards.

Tip: Research local salary benchmarks, and offer competitive packages that include health benefits, flexible work schedules, and continuous learning opportunities.

4. Leverage Local Job Boards and Platforms

While global platforms like LinkedIn are popular, local job boards such as Computrabajo, Catho, or Bumeran can yield more targeted results.

Tip: Use a mix of global and local platforms to cast a wider net and reach a diverse talent pool.

5. Provide Opportunities for Growth

Talented tech professionals are not just looking for a job but a career. They value opportunities to develop their skills and climb the corporate ladder.

Tip: Ensure that your organization provides clear paths for growth, mentorship programs, and continuous learning opportunities.

6. Be Prepared for Remote and Hybrid Models

The tech industry in Latin America has quickly adapted to remote work, and many professionals now expect this flexibility.

Tip: Offering remote or hybrid work models can make your company more attractive to potential hires and also gives you access to a wider talent pool beyond specific cities or regions.

7. Streamline the Interview Process

The tech talent in Latin America is in high demand. A lengthy hiring process can mean losing out on top candidates.

Tip: Simplify your interview process, ensuring it’s efficient yet thorough. Using tools like video interviews can speed up the process without compromising on quality.

Conclusion

The Latin American tech job market is teeming with potential. By understanding the region’s intricacies and being proactive in your approach, you can secure top talent that can drive your organization forward. Remember, successful hiring is not just about filling a vacancy but building a relationship that fosters growth, innovation, and mutual respect.