The National Institute for Training and Education (INCAF) has released the first Labor Demand Survey (ENDEL) 2024-2025, offering crucial insights into recruitment processes, talent retention strategies, and factors affecting employee turnover in El Salvador. The study surveyed 820 companies from various economic sectors registered with the Salvadoran Social Security Institute (ISSS).

Key Findings on Hiring Practices

The survey highlights the most common recruitment methods used by Salvadoran companies:

• Internal talent management (26.1%)

• Employee referrals (16.2%)

• National job boards (14.9%)

• Private job boards (11%)

Strategies for Talent Retention and Attraction

To attract and retain employees, companies implement several measures:

1. Prioritizing internal promotions

2. Retaining employees in critical positions

3. Offering incentives to attract new talent

4. Hiring foreign workers when necessary

Among the benefits used to retain employees, the most common are bonuses, life insurance, commissions, and financial support for continuous education.

Challenges in the Labor Market

The survey also reveals that 67% of companies struggle to find qualified talent, with the lack of work experience cited as the main reason.

When it comes to employee turnover, voluntary resignation is the leading cause, followed by job abandonment and contract termination.

Opportunities for Training and Workforce Development

To bridge the skills gap, companies are open to fostering professional development through internships and training programs:

• 65% are willing to offer internships

• 61% are open to professional training programs

• 44% support dual education programs

Workforce Preferences

The survey also sheds light on employer preferences:

• 79% of companies do not have a gender preference for candidates

• 38% require one to two years of work experience

• 31% seek employees with a high school diploma

• 30% prefer candidates with higher education qualifications

Through this research, INCAF aims to anticipate labor market demands and align training programs with the country’s economic dynamics. By enhancing employability and skill development, the study seeks to ensure that the Salvadoran workforce is better equipped to meet both national and international labor market needs.