Brazil's XP to hire 2,000 employees in 2021, embrace 'hybrid model'

Brazilian investment fintech firm XP Inc. expects to hire some 2,000 professionals in 2021, CEO Thiago Maffra told S&P Global Market Intelligence in an exclusive interview.

The company, which launched its Nasdaq IPO in the U.S. in 2019, is looking to expand its footprint in the Brazilian financial market and will incorporate staff both domestically and abroad. The company has moved forward with the permanent adoption of a flexible working model, or hybrid model, which allows it to hire staff outside of São Paulo state, Brazil's traditional financial hub and home of XP's headquarters.

"We have been hiring people from everywhere," Maffra, who was appointed CEO in May, said. "We will probably finish this year with close to 6,000 [employees]."

At an increase of 2,000, the number of expected new hires for 2021 is greater than initial press reports, which suggested XP could grow its workforce by 1,100 employees from roughly 3,800 by the end of 2020.

To that end, the executive underscored the importance of adopting a hybrid model in the aftermath of COVID-19. "We are not going back to the office like we used to before the pandemic," he said. "Hybrid is probably the best model for the future."

In an aggressive expansion phase, the brokerage firm embraced a hybrid model as a means to become more attractive to human talent.

"The biggest issue is to hire good people in the number that we need," he said. "The world has a problem with supply and demand for developers and data professionals. These guys are much more open for companies with remote work."

"Once you adopt a hybrid model, you can hire people anywhere, outside of Brazil as well," he added. The CEO said that while some employees might go into the office three or four times a week, others might only show up once or twice a year. "We are not going to close offices, but we will not have available seats for everybody," he said.

The company is also moving forward with the "XP Villa" project, an enterprise campus in the state of São Paulo which is expected to house many of XP's employees. The CEO says the complex will mirror what large tech companies in the U.S. have done with their commercial offices. It is expected to be launched in April 2022.

For the first quarter, the investing firm reported a 104% year-over-year increase in net income to 846 million Brazilian reais. Already a rival for Brazilian banks in investing, the company is pursuing an expansion into other verticals such as credit or insurance.

As of June 30, US$ 1 was equivalent to 5.02 Brazilian reais.